Personal Finance Tips for Singles
While the family unit is certainly the bedrock of American life, and a coupled existence is considered the norm, it may surprise you to know that over 45 percent of American adults are unmarried, according to the Census Bureau.
Being single comes with many benefits, but also with its own set of responsibilities. There’s no-one but yourself to hold you accountable, especially when it comes to personal finances. Here are some things to help ease the burden on your lonesome shoulders.
Only about 1/3 of Americans (32 percent) maintain a household budget. Only 30 percent of Americans have a long-term financial plan that includes savings and investment goals. It has also been found that you’re mostly likely to budget if you make at least $75,000 per year.
The trick is to set short- medium- and long-term financial goals and then build a budget around those goals. Online financial tools are useful in this regard, but a professional financial advisor is far more of a personalized option.
One of the best things you can do for your finances — whether single or otherwise — is to learn more about money management and investing. When you know how to maximize each dollar and put it to work for you, you’re one step closer to achieving your financial goals. And when you’re educated on the basics of personal finances, you’re far less likely to make poor decisions with your money.
If you haven’t been stockpiling money and saving regularly, it’s never too late. Open a 401k or IRA and start saving now! Start an Emergency Fund. Open a Savings Account. Think ahead and plan before you get hit with an unexpected expense that you can’t cover. Start a habit of putting 10 percent of every paycheck into your savings account.
Transferring credit card balances on high-interest rate cards to one with a lower rate may help you consolidate your monthly payments and save on interest. Once you’ve done that if you’re worried about using the cards again: shred them rather than canceling them. You’ll still have the credit line in your name, but you won’t have the temptation in your wallet.
Being single — whether suddenly single or you’ve been in the lonely hearts club for a long time — presents a unique set of challenges to money management. But the right planning and smart approach can move you toward your goals and keep you on course toward financial freedom.
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