Financial tips for single parents
Posted on: 03/Aug/2015 10:02:25 AM
Being a single mother or father is becoming increasingly common. Here are some ways to keep yourself financially stable in such a condition.
First and foremost, assess your financial situation. You may have received a settlement amount from a divorce or an insurance amount from your spouse`s demise. Put down your financial needs and compare them with your current status. Do not make hasty decisions. Look into the option of liquidising fixed assets such as property. Invest in liquid funds that will give you the liberty to access money till you figure out a plan.
A financial plan as a couple is very different from the plan as a single parent. Reorganise your plans to suit your financial needs. Go back to the drawing board and work backwards from what you need per month or per year to what you need to invest or earn to achieve that goal. If you are in need of a savings plan, the best way to go is the SIP plan. This a mixture of stock investment and a safe fixed deposit. Contact a reliable and well known company to advise you.
In the event of the demise of your spouse, you do not automatically become the legal heir unless there is a will that states thus. You will need to go through legal channels and bring up paperwork to prove your legal status. Be strong and stick to the plan as you go through the motions. In case you have minor children, appoint a legal guardian for them in case something happens to you. Also, work on your will to make things easier for your legal heirs. Also, take up a life insurance policy for yourself, especially if you are the sole breadwinner of the family now.
In case you need money urgently, you may be tempted to approach an institution for a loan. Be wary! Repayment of loans is a difficult proposition. Instead, first try to cut down your monthly budget and see if you can save more money. Try to get friendly loans from relatives or friends before you take a drastic step.
Don`t forget to look at retirement plans for yourself. Remember that although your thoughts will be on your family now, there will come a time when you will need to fend for yourself.
