Budgeting takes a different route if you are a single mother. Now you do not have just to make a budget for yourself but for your child as well. Budgeting becomes more complicated when you have to do it when you have a child. learn How to Manage Your Expenses as a Single Mother.
Children bring additional expenses, which puts an additional burden on your budget because your income does not grow with the rise in those expenses. Well, you should try to increase your income, so it does not make it complicated for you to deal with your finances.
A side gig can be a better option for you if you cannot switch to a job with higher pay. Well, having a side gig does not mean that you do not need to take care of your expenses. Here is how you can do it.
Find out how much you are spending
First off, you need to find out how much money you need to meet your daily expenses. Draw up a budget because it is the only way to get an insight into how much money is going out. However, while making a budget, keep in mind that you need to stash away money for a rainy day.
Large expenses like mortgage payments are more important, so start with them and then look at other expenses, including food and discretionary expenses.
With properly planned budgeting, you can save a certain amount of money. However, if you still need some money, you can look for funding sources, including grants for single mothers in the UK.
Keep tabs on your expenses
You should keep tabs on your expenses to take control of your budget. Most of the time, you just see how much money is coming into your account. If it seems complicated for you to track your expenses every day, you should use apps.
Various budgeting apps can allow you to track your expenses. This can enable you to prevent overspending. If it is not possible to do it every day, you should do it at the weekends.
Track, all of your expenses, to see how much money you have spent in the whole week, and then you should figure out if you have enough money allocated for the rest period of the month. If not, you need to adjust your expenses.
Find out where you can cut back. If that is not possible at all, try to make these adjustments next time and do not mind cutting back on your discretionary expenses. If both the options are not suitable for you, you should ask yourself the following questions:
- Is there any way you cut back on your expenses like utility bills and variable expenses?
- Could you buy grocery from a wholesale store to save to recover the shortage?
- Can you cash out what you do not need at your house?
- Could you recover that money by cancelling gym subscriptions etc.?
Try to save money as much as possible
Just building an emergency cushion will not be enough, and even if you have set aside six-month worth of living expenses, it is always less. Therefore, you should never leave a chance of saving money. Here are some of the ways how you can cut back on your expenses to have room for extra cash:
- Try to use less energy to save money on your energy bills. Do not let fans and lights on where you are not present.
- If it is too chilly, you should put on extra layers instead of using blowers the whole day.
- You should cut down on the frequency of hotel and restaurant visits. You may have to completely cut down on it if you are on an extremely tight budget.
- Make the best use of bonuses, income tax refunds, and the like.
- Look for deals when you have to buy groceries and dine out at the restaurant.
- As far as it is about travelling, you should use public transports. Flights are very expensive. You can use trains instead. You will be able to save a lot of money.
- Prepare meals at home instead of ordering from the restaurant. This can be a lot cheaper alternative to save on food.
- Stock up on durable things. You can stockpile most grocery items during the festive season when you can get them at reduced prices.
The bottom line
Budgeting as a single mother is not that easy. Not only do you have to look after your current expenses but you also have to plan for the future.
There are a lot of expenses you will have to plan for right away. Even though you have been strictly following your budget, you will have to increase your income if they are rising.