3 Principles for Setting Financial Goals as a Single Parent
All parents are heroes, but single parents are the true superheroes among us. These mothers and fathers are doing the difficult work of caring for their children while balancing their family’s financial well-being on their shoulders.
There are 3 principles every single parent can adopt to live their best financial lives.
These real-life superheroes split time between work and raising a family, which can leave little time for money management and financial planning. We want to change that!
1. If you’re a single parent, the first thing to remember is “never stop dreaming.”
I know that alone can seem like a fantasy, especially when you are consumed with the day-to-day needs of your family and home. But what it really means is that you need to keep thinking about your long-term goals and put a strategy in place to achieve them.
Start by writing down a list of short- and long-term aspirations for you and your family. It may be as simple as “What is my vision for my family?” or “What are my lifestyle goals?” Or it can something like “Where do I want my family to be financially in 1, 5, or 10 years?”
As you answer these questions, ask yourself, “What are the biggest obstacles? And “What’s one thing I can do each day to move my aspirations forward?”
These questions lay the foundation on which you will build your financial goals.
2. The second principle for single parents is to focus on protecting your family’s financial well-being.
As a parent myself, I know how much attention goes into protecting children from harm, but it’s just as important to prepare and safeguard your household finances.
This means establishing a rainy-day fund to help you pay for life’s unforeseen expenses. That could be everything from suddenly being unemployed to fixing the hot water heater when it unexpectedly breaks down.
Ideally, you should have 6 months of expenses saved up just in case. If you don’t, start saving now so you’re prepared to protect your family if the need ever arises.
3. Always be looking for new opportunities to increase your earnings.
If you feel limited by a single source of income, just know that there are always opportunities for growth. This may mean exploring new career paths, taking a second job on the side, finding ways to monetize your hobbies, or investing your money so it works for you.
Remember, you are not alone. Seek advice from colleagues or friends and family about how to advance your earnings potential or meet with a financial advisor to see how you can maximize your savings through investments.
If you’re a single parent, making these 3 principles a part of your life can be tremendously rewarding for you and your family. They can lessen some of the worries you might face and inspire you and your children to reach their own goals!
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APR = Annual Percentage Rate