This post is sponsored by BabbleBoxx.com on behalf of Nationwide.
The biggest concern for us single moms is usually money. Making more money, creating savings, paying off debt and planning for the future are at the top of the list. Money may not buy happiness, but a lack of funds creates anxiety, stress and limits our choices.
It’s not easy being the sole provider, but with careful planning, single moms can thrive…not just survive! Today, I teamed up with Nationwide to share 5 Financial tips for single moms.
Be Realistic About What You Can Afford
This is a tough one because, thanks to social media, we’re bombarded daily on social media with images of picture-perfect homes, luxury cars and clothes, and tropical vacations.
As a single mom, you’re the sole earner in your family so you need extra financial cushions. It’s important to live within your means (whatever they may be) and save for the short and long term, as well as pay off any debt.
Pay Off Debt
It seems like you can finance everything these days. Loans and credit cards offer the ability to purchase items we normally couldn’t afford and pay it over over years with a high-interest rate. If that fancy new car comes with an interest rate of 18% over 36 months, you might want to reconsider. Same goes for the designer handbag that would take a year to pay off on your credit card.
The less you owe to other people, the easier it is to build wealth and reach your goals.
Protect Yourself and Your Children
Life insurance isn’t pleasant to think about, so many of us avoid it altogether. There are also concerns that it will be too expensive. Buying quality life insurance is actually less than you may think. In fact, most people expect it to be 3x what it actually costs according to a LIMRA 2018 Insurance Barometer Study. Life insurance prices tend to rise as you age, so the best time to lock in a rate is now.
Nationwide provides life insurance that can help your family supplement lost income. It can also offset the cost of daily living expenses, college tuition, and even retirement should something happen
If you receive life insurance through an employer, it may not be enough. Oftentimes the policy will only cover one to two times your annual salary which may not be enough for your family’s needs. Plus, if you change jobs, you lose the policy.
Nationwide will work with you one-on-one to analyze your needs and select a life insurance policy that is right for you and your family.
Experts recommend keeping a minimum of three months’ living expenses on hand. This will provide a cushion if you expensive a life change (lose your job) or a big, unplanned expense (like a car repair).
It’s also important to get serious about retirement planning. Take advantage of investment benefits offered or work or meet with a financial planner. You don’t need to earn a big salary in order to invest- every bit helps!
Set Big Goals
What is your ideal career? What is your dream home? Set big goals for yourself and plan out concrete steps to achieve them.
Being a single mom doesn’t mean settling for the bare minimum. Take a class online. Work on your side hustle after the kids have gone to bed. Don’t hold back! Be the best version of yourself, for both you and your children.