Many single parents often find it a challenge to continue to meet their household’s financial commitments after the loss of a loved one. Whether the result of a breakup, divorce or death, you can take some simple steps to continue to build your financial foundations.
Below are my five top tips to increase you regular savings as a single parent:
1. Review your home entertainment expenses
Cable TV, Netflex, Wireless internet, Movies on demand, the list goes on…
Home entertainment expenses can quickly add up without you realising it. A few hundred here, another hundred there can quickly see a reasonable sum of money disappear from your account each month. Sit down and review exactly how much your spending on home entertainment and start to cancel the expenses you and your kids can live without.
2. Tame your grocery bill
The average weekly grocery bill for a couple with teenage children in 2014 was $314. There are some simple steps you can take to start reducing your weekly grocery bill including; use coupons wherever possible, join loyalty programs that provide you with discounts on your weekly groceries, start considering other brands, don’t shop when you’re hungry, make a list and avoid going outside the list. Of course, one other simple step is to start growing your own herbs.
3. Review your insurance policies
Insurance forms the foundation of our personal finances and is a critical element for all households, but should be reviewed on a regular basis, particularly if you have only recently become a single parent. Sit down with a professional fee-based financial adviser and review your insurance coverage and premiums for your policies including; Life, Total & Permanent Disability, Income Protection, Critical Illness/Trauma, Private Health, Home Contents, and any other policies you may have. You may be able to save thousands of dollars each year by improving your current policies.
4. Review your mobile phone bill
With a wide range of mobile phone plan providers, for most of us there is no reason to be paying hundreds of dollars every month. Most of us will pay our mobile phone bills via GIRO / Direct Debit and simply ignore how much is deducted from our accounts. Review your last few mobile phone bills and consider whether you should switch providers.
5. Review your BAD debt
Do you use your credit card on a regular basis? Do you have personal debt for depreciating assets that you’ve accumulated over time? Just how much interest are you paying on a regular basis? This can be one of the simplest strategies to save hundreds, if not thousands, every year. If you are using your credit card on a regular basis to build your points balance, then set yourself a reminder to pay this off on a regular basis.
The next steps
Once you’ve reviewed how much you could be saving on a regular basis, ensure that you have a well-considered strategy to achieve your financial goals.
To Your Financial Success!
Jarrad Brown is an Australian-trained and qualified Fee-Based Financial Adviser with Australian Expatriate Group of Global Financial Consultants Pte Ltd providing specialist financial advice and portfolio management services to international and local professionals in Singapore.
Book a complimentary consultation here.
General Information Only: The information in this article is of a general nature only. It does not take into account your individual financial situation, objectives or needs. You should consider your own financial position and requirements before making a decision.