How Can Single Parents Be Financially Strong?

Posted by Deb Dutta on September 3rd, 2019

Being a single parent is never easy as people have to single-handedly shuffle responsibilities, both at home and work. While it can be intimidating to live on a single income, it is necessary to get a grip on finances as it makes the journey a lot smoother. This article has presented some useful steps that will help single parents to be financially strong and live life fearlessly.

Even though the world outside is tough, single-parents may find it even more daunting, especially when it comes to managing their finances. But thankfully, there are lots of expert financial advisors available, who can guide them to get their life back on track. And so, despite all the hurdles, single parents need to follow some steps in order to achieve the financial strength they seek so desperately.

Fast-track twin goals

Children's education and retirement are the most important financial goals for any single-parent. So, it is important they begin their investment as early as possible to attain it. The first step would be to have a look at the cash flows and tie them to the financial goals. It will help them figure out whether they are earning sufficiently towards achieving these goals and identify gaps if any.

So, they must choose the right financial tools for these goals depending on the time period left. Equity mutual fund investment is one of them. Today, one can go for the best mutual funds to invest.

Bridge gaps

For more money that will help them achieve financial goals, they need to rework on their budget. Initially knocking off big expenses and then, going down the order and achieving small victories is what's needed to be done. Some other measures that single parents can take are avoiding taking debt, and pay off existing loans as soon as possible.

Money lessons for children

Single parents should take every step towards carving a beautiful future for not only themselves but their children too. And for this, they need to inculcate prudent financial habits among their kids. They can be made a part of the family budgeting and investing process and lessons regarding being self-sufficient needs to be taught.

Automate investments

People can primarily invest in equity mutual funds via SIPs for achieving their long-term goals. They offer the most striking inflation-beating returns over the long term. Also, they must ensure a portion of the portfolio is used for debt funds that will take care of contingencies and short-term goals. So, what are the right funds to invest now in India? Consult the best experts for this job.

Emergency fund

It is extremely important to have an emergency fund, and single parents need to think about from early on. Any job loss, accident, or illness will need money to fall back upon. So, it must be ensured that people have at least half a year's worth of household expenses parked in a liquid fund. This is an important step that needs to be taken to ensure one achieves financial independence and thus, a better life.

For the most helpful financial guidance, one can visit experts such as Wealthclock Advisors.