Being a parent is challenging enough, but when you’re doing it solo, you have double the time, financial and resource demands. You’re likely reliant on one income, but still have current expenses and concerns, as well as longer-term considerations such as life insurance and education policies.
Single parents have little margin for error when it comes to their finances and we at Hero Life have some practical strategies for balancing present and future financial requirements.
Save
It sounds so easy, but in practice it’s tough, especially when there are always expenses, a and new ones come up. You need to find ways to save that make sense – whether it’s setting up a debit order on your bank account for a savings plan, only eating takeout once a month, only buying clothes on sale, scouring supermarkets for grocery specials, or packing lunch to take to work.
The key to changing spending behaviour is by creating a goal, and starting small. Begin by switching off lights when you don’t need them to save electricity, or waiting a while before buying those shoes, or limiting yourself to one impulse buy a month. You could save hundreds of rands a month, which equates to thousands by the end of the year. This money can be saved for emergencies, or put towards education policies or increased life cover.
Create a budget
It’s boring and admin-heavy, but by figuring out your fixed and variable expenses, and looking at your bank statements, you’ll see exactly where your money is going, which will help you make smart decisions on what you could cut out of your life. You’ll likely find that you’re spending money on things you don’t need, or you’ll see opportunities where you could be paying less for something.
You could also try the 50-20-30 budget method: 50% of your net income should go towards your needs, 30% towards your wants, and 20% to your savings and debt repayments.
If you’d like guidance here or don’t know where to start, chat to us at Hero Life – we’ll happily guide you through the process.
Protect yourself and your things
Having a will, life insurance and medical aid aren’t luxuries. You might think that because you and your family are generally healthy, or that you don’t have a lot of assets, you don’t need medical aid or a will. Or you might think that because you’re fairly young, you don’t need life insurance, or that your kids will be provided for by their dad, or your parents. There are many things to consider if something happens to you – your kids’ education, first cars, weddings and general wellbeing, and you’ll be doing them a big disservice if you leave them with nothing.
These things are important, and without them, you could be left with debt, your kids could be left with no assets and lots of debt too, and you could be compromising heavily on your savings and your financial future.
If you’re unsure of where to start, or worried about how to afford it everything and how to budget, then chat to us at Hero Life. At Hero Life we’re happily helping young South African families with their finances and pointing them in the right direction.
Hero Life is a company that offers a free online Will, helps you to start saving for your kids’ education, and offers life insurance, designed specifically for young parents. Hero Life is an MMI Group initiative, and underwritten by Guardrisk Life Limited (Reg no 1999/013922/06), an authorised Financial Services Provider (FSP license number 76).
This material has been prepared for informational purposes only and is not intended to provide financial advice.
Visit herolife.co.za for more info or WhatsApp us at +27 73 916 9367 to learn more.
Facebook: https://www.facebook.com/herolifeZA/ #BeAHero #SuperSavvy #HeroParents
- Single parenting financial tips - February 27, 2019
- The What-We-Need-To-Breeze-Through-2019 for Busy Parents - February 14, 2019
- Financial planning tips for parents - January 21, 2019
