How to Create a Budget for a Single Mom
Single motherhood could be an overwhelming experience---if a single mother had the time to be overwhelmed. A single mother is too busing being a nurturer, a disciplinarian, a chef, a tutor, and a breadwinner. Her life is a continuous balancing act, so the last thing she needs is to falter because her budget does not have any bearing.
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Instructions
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Single-Mom Budget
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Set a goal. Sticking with a budget is hard work, especially when you have only one income. You will garner better results if you set a goal to determine what will be done with the money you can save. Once you have determined an objective, visualize yourself accomplishing it.
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Figure out where your money is going each month. You need to know how much money you bring in---and how much money goes out. In order to do so, you need to gather all of your bills for the month (e.g. rent/mortgage, credit cards, groceries, etc.). In addition, you need to know exactly what you bring home each month. Before you can create guidelines, you need to see on paper what you are currently spending. Most people believe they spend less than what they actually do. If you do not feel comfortable doing this on your own there are personal budgeting programs that can assist you. Quicken and Microsoft Money, are two programs that offer free software trial. (See Resources)
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Separate your fixed costs from your variable costs. Once your "realistic" living expenses have been determined, you can figure out what spending can stay and what you can get rid of. Fixed costs are set in stone; they are things such as your rent/mortgage, car note, insurance, loan payments, etc. Your variable costs are things such as your groceries, utilities, entertainment, and other incidentals. The variable costs section of your budget is where you will cut spending.
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Determine what cost you can decrease/eliminate. For instance, if you and your child/children eat out often, determine what you can save by cooking at home. Or if you spend a lot of money on books and movies, consider getting a library card so you will be able to check out books and movies for free. If you spend a lot on clothing because your child grows like a weed, consider shopping at a consignment shop, eBay, or Amazon. Anywhere you can make a cut, do it.
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Determine what your average savings will be. If you subtract your fixed amount and your "projected" variable amount, from the amount of money you bring home, the difference is what you will have left to put toward your goal.
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Tips & Warnings
Once you create the new projection for your variable costs, try and stick with it. If not, you will begin to spend money frivolously. Track your daily spending in a small notebook that can be kept in your handbag. Remove all but one credit card from your wallet. Withdraw cash to use for weekly spending instead of using your debit card.
Do not include any bonuses that you cannot physically get your hands on into your budget. Do not live above your means. If you live in a house or apartment that's too expensive, consider moving.
References
Resources
- Photo Credit blog.syracuse.com
