As a single parent I can’t remember a time when money wasn’t tight. Child support doesn’t cover all of the kid’s expenses and just the everyday necessities add up quickly. In many cases the family has gone from having two incomes to one. You have to find a way to make sure there is food on the table, a roof over their heads, clothes on their backs, not to mention all of the things they end up needing as they are starting school, etc. The bills just keep piling higher and higher. This is when it becomes crucial to have a financial plan and stick to it.
Budgeting can be miserable. At first it can be hard to keep track of where all the money is going. Writing everything down can be time consuming and a bit of a hassle in the beginning, but it is so important to know exactly what you are working with. You can’t possibly live within your means if you don’t know what they are to begin with. Once a month sit down and look over everything. If you are getting a little too close for comfort, look at your budget and find what things you could do without.
When money is tight, throwing everything on a credit card may seem like an easy fix. After all, you don’t have to pay it all back right now. This way of thinking is dangerous. If there isn’t enough money in the account to pay it all off right then, don’t do it. Interest rates on these credit cards can be up to almost 30% in some cases. Think of all the extra money you are paying that you could be using on something else. In some situations you don’t have a choice, but to put something on the credit card. If this is the case make sure you make your payments on time. Avoid late fees as these can damage your credit. Pay off as much as you possibly can each month until you have chipped away the balance.
Even when money is tight it is important to set aside as much as you can for savings. You never know when something is going to come up. That way if the car breaks down or one of the kids ends up in the hospital you don’t have to go in the hole to be able to pay for it. You don’t need to set aside a lot every month. Do as much as you reasonably can afford, then leave it alone until you really have need for it. Next time something comes up you’ll be happy you did.