For the most part, when you talk about budgeting for savings as a single mom, people are going to tell you to start by cutting out entertainment costs. You can do this, but you can also kiss any remnants of your sanity good-bye along with all entertainment expenses. You don’t have to cut out entertainment; you just have to budget for it.
How to Save
To begin with, you need to see what kind of assistance programs you qualify for. Instead of being embarrassed about needing help, just know that if you meet the financial standards to qualify for them, you really do need the help. Consider this the motivation you need in order to create and attain some educational and career goals.
Create a list of all your monthly bills, including food and gas. Break them down into the same time denominations as your pay scale so that if you get paid once a week, your bills are broken down into weekly debts.
Include 10% for entertainment costs and 10% for savings. You should never spend more on entertainment than you do on savings. You can adjust this figure for more or less as your income allows. If you are behind on your bills, add 10% of your paycheck until your bills are paid off.
Individual Development Account
For some added motivation to put money into savings, consider investing in an Individual Development Account. The Individual Development Account (IDA) is partially funded through federal and state resources so that you can receive a match donation for every dollar that you put into the account. At the minimum, you will receive one dollar in the savings account for every dollar you put it, but you may receive up to three dollars match for every dollar you put into savings.
One of the most important parts of developing a savings account is that you have a goal in mind for the money. When it comes to the IDA, you cannot withdraw the money without a purpose. The funds that you deposit are in a different account than the match funds so that they are only put together when you withdraw the money. The money can be used to fund a business, buy a home, or pay for college or the necessities that come with going to college.
Even if you put a dollar in savings and dollar towards old debts, you are making some kind of headway. Keep track of all of your funds so that you can be motivated by the progress you make.
For more information please visit www.singlemomfinancialhelp.com/