As a single person, you have total freedom to determine when and how to spend your hard-earned money on handling your finances as a single person. Yet you also don’t have the built-in accountability buddy that helps you reign in spending that is out of control.
Everything is on you. How much money you are making and what you are doing with that cash is up to you alone, and only you are faced with the consequences of your financial decisions.
You have to commit to making the right decisions to keep living your best life as captain of your ship. Below is some financial advice for singles to take heed.
Get On A Budget
You don’t have to worry about anyone challenging your financial decisions because your money isn’t merged with a significant other’s. But just because you don’t have to work with anyone does not mean spending without a plan is okay.
It all comes down to budgeting. Your budget will tell you whether you have ample funds to buy such a costly bag or whether that purchase will delay paying the rent on time.
Build an Emergency Fund
Your safety net is an emergency fund when something goes wrong. It is especially necessary to build a strong emergency fund as a single individual.
If your car breaks down or you get laid off from your work, you don’t have the savings or income of someone else to tap into.
The commonly used approach for an emergency fund is to save expenses for three to six months, but if you start anew, create a smaller-scale target and gradually build up to that amount.
Save for Retirement
The downside to being single is that you don’t have a partner who will help you contribute to your retirement funds. However, the benefit is that you only need enough funds to cover one retired person, not two.
Whatever your relationship status, early contribution to a 401(k) or IRA will also help you create a secure nest egg for your golden years. When you’re single, your retirement squarely lies on your shoulders.
Get Out of Debt
Debt is your big problem – whether it’s student loans, credit cards, or the monthly payment plan you signed up to pay for those trendy sneakers.
This not only steals your future, but it also leaves you trapped in your past. List your smallest to biggest debts. Before they take care of you, take care of your debt.
Learn How to Cook
When you’re single, it might be a normal occurrence to go out to eat. Sad to say, that can be one of the greatest strains on your budget as well. Spend some time learning how to prepare homemade meals.
You can make restaurant-quality meals for a fraction of the price, with just a little practicing and wise grocery shopping.
And if you were to substitute home-cooked meals for two days a week, you might save several thousand dollars annually.
Diversify Your Income Sources
Losing your job or having your boss cut your hours can be financially devastating when you’re single. If something occurs to your primary job, getting other revenue sources will mean you still have cash flowing in.
Try picking up a side hustle like a second job or establish your own business. Not only can you enjoy a better lifestyle when you’ve got good money coming in, but you can pay your bills on time and keep your credit in check.
Bottom Line
The more you understand the best way to handle your money, the happier you will be, no matter what stage of your life you’re in. Remember that marital status doesn’t matter as you hit your goals left and right. Start by following these money-saving tips and it will all fall into place.
