Times are getting tough, mainly because prices are on the rise. This can be tough on parents and even tougher on single parents. Therefore, it is important that single parents know how to budget correctly. Life in the 2018 is more expensive than it was 15 years ago.
For instance, ask yourself: How much did a person spend taking his or her family to the cinema? Now try to remember the last time you went to the cinema” how much would that amount of money get you at the concierge desk? Bob Dylan was right when he sang, they are a’ changing.
Therefore, how can people cope with the rising cost of living? The answer to this question is so simple: people should learn how to budget your finances properly. This is true for anybody out there, especially single parents who do not have the luxury of two paychecks.
If you can relate to this, then here is how to budget your finances as a single dad
Work out your monthly expenditures
It is impossible to create a budget without understanding your financial situation. Therefore, it is good to take some time to find out how much you earn on a monthly basis and what you spend the money on.
You will come to find that finding out how much you earn is easy, but determine where your money goes may be a bit difficult. Tracking your spending over the course of each and every month will help you determine where your money is going.
Write down all your expenses including your pocket money, bills, and the cost of that new pair of shoes you bought for your child, lunch at work and so on. Doing this is very important for the next step of your budgeting plan.
Write out your monthly budget
After knowing how much you earn and how much you spend, you can work out the dynamics of your budget. Open a new sheet in Excel and work out the total amount of money you spend on your bills, food, your TV subscriptions and so on.
In case you want a basic template for how to set your budget out, there are many free resources on the internet. If you are spending more than what you earn, then it may be time to think of how to reduce your expenses. If your bills are running a little high, tell your children the importance of wearing slippers and a hoodie indoors.
Look for ways that can help you reduce spending in some areas too. For instance, if Sky is too expensive, consider switching to Netflix. Do you spend £50 a week on high street coffee? That all adds up very quickly, especially when you key it on the Excel spreadsheet before you.
Look for ways to cut the costs/ boost your income
You can further cut down on your cost of living by doing thorough research. Sites such as Groupon can help you get things such as cheap cinema tickets, cheaper days at the local zoo and so on.
Do you have any skills to sell? If the answer is a big yes, then it may be a good idea to look for places you can sell them online and boost your income. You can set yourself up as a freelancer during your evenings or design a web tutorial that teaches people how to play guitar. You will be surprised by what you can find if you look hard enough.
Save for birthdays little and often
Christmas and Birthdays are usually the biggest costs every year. Don’t wait until December to start thinking about Christmas. Also, don’t wait until the birthdays are near to start thinking about where you will get the money. Put away a little money each and every month to have a small fund to put towards the big dates such as birthdays and Christmas.
Just imagine this: Putting away £20 every month will net you £200 to spend on Christmas; £40 will net your £6600 that you can spend guilt-free. Putting away money will help you avoid falling back into the red this time of the year.
I first saw this on a site I have followed for years which is WOW FreeStuff, they offer freebies and also money saving ideas, and they have came up with a way to save 1p a day and then day 2, 2p and so on. Its a great way to save and you can read more about it by clicking here.
When everything else fails…
Don’t be afraid to ask for help. Debt is a real part of life and if you are genuinely struggling under the weight of debt, there are some ways that can help you shift some of it. People who live in England can seek out IVA to help sort out their unsecured loans.
People living in Scotland, on the other hand, can seek out a Scottish Trust Deed to help them sort out their financial difficulties. If you are going to seek out financial help in this area, then look for a company that is FCA approved and regulated.