Whether you are single by choice or dealing with the aftermaths of a breakup or divorce, there are certain things you need to place on top of mind when managing your finances since you are the only one earning an income and do not have support from a partner. Here are some tips to help get you started on the right direction.
- Do not underestimate budgeting.
When you are single, every dollar you make should be accounted for. Allocate your money to fund your financial goals. It is easy to live within your means by yourself. Save the leftover money, invest, and pay your debts. Write your budget every month, as detailed as possible, without being overwhelming. You can do this manually or through the use of budgeting apps.
- Learn how to cook.
You may think it is more convenient to eat out than cook for one, but a quick examination of your food expenses will change your mind. You would be surprised to learn the total of how much money you spend in going out to eat every year. Even if you spend only $10 a day on lunch or dinner from a restaurant, you are spending over $3,500 a year. If you spend more, you could easily reach $10,000 a year. Learn how to cook more meals at home. Of course, you will need to go out from time to time when meeting friends or dating so save your money for these occasions and eat at home every other time.
- Plan for retirement.
Because you only have to think about yourself, put all your effort now in saving for your retirement. Do not just count on Social Security. Enroll in a 401(k) or 403(b) plan if your employer offers it. If you do not have a retirement plan at work, set up a traditional or Roth IRA. These accounts can help you automatically save for your retirement each month. It is best to start early. You do not want to play catch up when it comes to your golden years!