Tips on Managing Finance for Single Parents

Being a single parent is not what everyone wants. Some parents should be a single parent because their partner has died first. Partly due to husband and wife already do not feel harmonious and have disagreed in housekeeping and eventually chose and decided to divorce.


A single parent will certainly make you have a myriad of policies in finance. The various expenditure items that must be covered each month, will be a liability borne by you alone as a single parent. Anything in terms of finances to watch out for?



# 1 Adding Your Income

It is not easy to be a single parent, in addition to being the only backbone in the family in the affairs of making a living, also must educate and take care of the family. Just like any other family, a single parent should be able to allocate and prepare income for daily life, sudden expenses, and long-term expenditure.

There is nothing wrong to find and find a side job that can supplement your income, especially if you have a number of unmet needs by simply relying on the income from the current job. However, always remember that this is just an extra income, where the current job still remains the main source of income in your finances.

# 2 Creating Budgets and Financial Records

You can not manage your savings account if you do not know where all you are and where to go. Having a budget is the most important step in financial planning. You must do it thoroughly and use appropriate estimates, so there is no imbalance in the planning that you have set.

Record every plan, the implementation of the budget in detail. You can find out your income and expense patterns through your financial records. By knowing the pattern, you can predict the amount of spending in the future. You can start setting up your funds from now on, so it's time you do not have to owe.

# 3 Have Life and Health Insurance

Each single parent should have the right insurance policy for themselves and their children. Insurance that needs to be owned is life insurance, so there are funds that can be used for your substitute to take care of children in case of death.

People sometimes complain about the amount of money that must be spent on insurance. However, if you have to face unexpected medical action, of course, the cost you have to spend more than the insurance premium you have to pay. So you should also buy health and education insurance so that the salary you have collected for years is not exhausted just to pay for medical treatment, and so you can prepare children's education well without getting hampered by the rising education costs.



# 4 Pay off Outstanding Debts

You need to make a list of financial obligations to pay so you can plan payments for those debts in accordance with the assets owned, at least for a period of several months before your financial condition recovers.

When you become a single parent because of a divorce you need to discuss and agree on the division of debt repayment obligations such as mortgage and a motorcycle that will not change and still on behalf of split husband and wife, whether to be divided or continued in accordance with the portion of each capability.

# 5 Build Emergency Fund

Having an emergency fund is usually very difficult, especially if you are the only financial source for the family. However, setting up a backup fund is the best way to protect you.

Emergency funds are the amount of money you allocate and use when an emergency occurs; these events can be either hospital charges or accident costs or the fulfillment of a cost requirement when suddenly you are laid off. Ideally, you can allocate less than 10% of your total income for emergency funds. Try to continue to allocate an emergency fund at least 6-12 times your total income depending on the status and number of people to live.

# 6 Learning to Invest

Make investments in finance, in order for families to have future guarantees in the future. Not necessarily in large quantities, you can also make small amounts of investment in advance, of course, that is in accordance with your current financial condition.

But it is very important to always be careful in choosing an investment instrument, especially for those who are not familiar and have enough knowledge about this. Invest in a variety of clear and low-risk instruments, so that money does not go away and evaporate for nothing. Do not forget to invest in several instruments, so that risks can be divided and finances still have a good guarantee in the investment that you do.

# 7 Create a Financial Plan, Especially Child Education Fund and Prepare Your Retirement

The plan has always been an appropriate first step in finance, where your various wants and your needs for family finances can be carefully and precisely targeted. In preparing a financial plan, you will need a variety of considerations in advance, so that the various posts in the finances are right on target and according to the needs of the family as a whole.

Always distinguish well, between wants, needs, and obligations. This will make you understand what and how you meet the various posts in your finances. This understanding will also greatly help you to choose and prioritize the various needs in finance, including determining the various other posts that must be met for future needs. Try to always think about the future from the beginning, for example by preparing: health insurance, pension insurance, education funding, or even holidays when you are retired

# 8 Prepare an Inheritance

Right now, you are the only parent, so if anything happens to you, you can set about inheritance or wealth for the child. Moreover, if you have children who are still below 17 years. Therefore, discuss with the notary and financial planner to secure inheritance and distribute the property to the child.