Single moms have the same financial concern as anyone else but they don’t have their spouse to share the financial burden. Therefore, being in debt in not a pleasurable experience for single moms as they are required to manage their financial obligation as well as take care of the kids single handedly. Many of these moms take out payday loan at the middle of the month to manage their unexpected expenses. If you are unable to grapple with your multiple short term loans then you can get help with payday loan debt by enrolling in a debt relief program.
Make sure you follow the financial tips mentioned below and create a budgeting plan in order to avoid financial crisis in future:
1. Remember that minimum 20% of the income should be allotted towards food. Food is an essential requirement for an individual to survive and lead a healthy life.
2. Make sure that your utility bills like electric bill, grocery bills, sewer etc should not exceed 10% of the gross income.
3. Make sure that you buy health insurance and your medical expenses should be within 5% of your gross income. It might be inclusive of the medical bills as well as paying towards your health savings account.
4. Entertainment expenses should be strictly below 5% of your gross income.
5. Make sure that you save 5% to 10% of your income in the savings account.
6. Single moms should pay below 20% of the gross income on your mortgage debt. Make sure that your debt to income ratio should not exceed 30% of the income.
Here are few financial tips that the single moms should keep in mind to enjoy a debt free life:
A single mom should file for child support in order to manage your child’s basic living expenses. This might help you in managing your finances single handedly.
If you are unable to manage your financial situation then guidance of a non-profit organization can be beneficial for you. The organizations provide assistance to low income or unemployed single mothers to eliminate their obligations and help them get back on the right financial track.
If you are managing your expenses sole on your income then it is advisable to compromise on your standard of living. If you are smart then life of a single mom is not tough.
