Whether you are single and carefree or supporting a family on your own, there are many things you can do to maximise your available cashflow.
Money management for many single 20-somethings isn’t terribly complex. Earn money, spend money, wait for next week’s pay, repeat. But that’s not necessarily going to set you up for the years ahead.
1. Learn about money
Take some time to improve your financial knowledge and literacy – the Internet is full of sound wisdom when it comes to all facets of money management.
2. Think beyond today
It’s going to be hard to pay off a mortgage if you can’t put aside enough money for lunch. Start setting some short-term savings goals. Maybe put aside 10 per cent of your pay as a start.
3. Dollars and sense
It may sound boring but making a budget is the best way to get into the habit of living within your means. It may mean one less coffee per week or taking a packed lunch to work.
4. Kill the credit
You are better off without that credit card. If you have one, make it an absolute priority to pay off the full amount. If you really need a credit card, looks at options with a debit facility.
5. Put those pennies to work
Your first job may not see you earn a fortune, but it’s still possible to start investing with a relatively small amount.
For many single parents, having enough money is their number one concern. If you shoulder the challenge of being a sole breadwinner, it’s essential to make responsible financial decisions.
1. A clean record
If the worst happens and you separate from your partner, a clean credit report will help you establish your own financial foundations. When the bills arrive, pay them on time.
2. Budget, budget, budget
Preparing a household budget and sticking to it will not only help you meet the basic day-to-day needs of your children, it will also help you save for future expenses such as school fees.
3. There’s help out there
You’re never alone. Know what you’re entitled to and make the most of Government assistance with things like childcare or medical payments.
4. Rainy days
Having some emergency funds put aside is vitally important for single parents with more than one mouth to feed. As the saying goes, “plan for the worst, hope for the best”.
5. The long run
Life insurance should be a priority. If something were to happen to you, your children must have their basic needs met.
This information is provided by Charter Financial Planning Limited (Charter FP) ABN 35 002 976 294, an Australian Financial Services Licensee, Licence No. 234665, a wholly owned subsidiary of AMP and a member of the AMP Group. It is believed to be correct at the time of publication, however, no representation or warranty is given as to its accuracy. No liability is accepted by any company within AMP or their respective employees or directors for any statement or opinion or any error or omission or for any loss arising from reliance on the information contained in this document. Investments may only proceed by completing the relevant application form attached to a current Product Disclosure Statement (PDS). Fund managers will receive fees for their services out of which authorised representatives of Charter FP may be paid commission. Neither the return of capital nor the investment performance of any investment is guaranteed by Charter FP. Past performance is not indicative of future performance. Any advice given in this document has not been prepared taking into account your particular investment objectives, financial situation or needs. Any case studies in this publication are hypothetical are not meant to illustrate the circumstances of any particular individual. You should assess your particular investment circumstances prior to making any financial decisions. This taxation information is based on the continuation of present laws and their interpretation and is a general statement only. Individual circumstances may vary. From time to time we may bring to your attention products, services and other information that may be relevant to you. If at any time you no longer wish to receive information, you may opt out by contacting our office.