Being single presents some unique financial planning challenges because it’s the absence of immediate family that makes it even more imperative for singles to engage in comprehensive planning. After all, singles must face every financial issue alone; there is no immediate support on which to rely.
Financial planning should always start with money management. There are two major issues money management addresses which are 1) finding the funds necessary to fund your plan and 2) ensuring that your money is used to meet your goals. This includes establishing your goals, defining your goals and listing them in order of importance to you. Once you have established effective money management it will become your ticket to FINANCIAL INDEPENENCE!
Budgeting is essential for anyone regardless of their situation, but it’s even more important when you’re single. Every dollar you make should be accounted for, and you need to have a clear understanding of where that money is going and how you can allocate money to fund your financial goals. Reviewing your debt to income for: Expenses > Income = Bad | Expenses < Income = Good. When analyzing your debt you should check if you’re spending more then you earn and focus on sticking to your budget.
Tackle your debt by breaking the minimum payment habit this can drag your repayment out, begin repayment of student loan(s) before the grace period end and consider monthly or bi-weekly automatic electronic payments from your bank account. Being consistent in any of these methods will help you to reduce your debt faster. Once your debt is reduced you’ll be able to focus on developing a savings plan. A savings plan should be established for short and long term goals. When focusing on implementing a savings plan it’s suggested for you to create an automatic savings from each paycheck for an emergency fund that equates to 3-6 months living expenses. This will help you avoid relying on high-interest credit cards...