Single parenting is a demanding job, both emotionally and financially. In response to your children’s needs, you must care for them as their acting mother and protect and provide for them as their father. While doing personal financial planning, it is necessary to consider the river of wants, needs, and goals that children will encounter throughout their lives. Being a single father should not be a financial burden in the right circumstances. Here are a few tips to help you be an awesome responsible single dad!

5. Make a budget and stick to it

Planning for financial security and achieving financial freedom requires budgeting. Budgeting does not restrict what you can spend or buy. Budgeting is like a good friend who will call out unnecessary expenses and help you analyse and realign your spending habits.

4. Minimize spending, Maximize Earning.

   There are two ways to achieve this.

Spend less and earn more.

It is easier said than done, but you can find ways to curb your expenses with a little effort. Magazine subscriptions you don’t read, gym memberships you hardly use, and scheduling weekly dining out to bi-monthly or monthly outings. Spending less than you have is the key to effective wealth management.

Increase your earnings.

To spend, save, invest more.

You should take advantage of any opportunity that comes your way, whether it’s a freelancing job, extra hours at work, or a weekend job. You’ll have more income for your family. More money and more work are good. Be sure to take care of your stress levels and mental health. 

3. Clear your debt

To achieve financial security, mounting debt is a significant obstacle. Most credit card expenses result in debt. You may already be in debt. There are two ways to start paying them off. 

1. Avalanche method

Having multiple debts and loans can be stressful. Repay your debt by starting with the highest interest rate and working your way down. Doing so will save you money in compounding interest payments.

1. Snowball method

You start by paying off the smallest debt and then move forward to the next smallest in ascending order. That way, it will not seem so overwhelming.

Whichever method you choose, it will help you reach your goal of becoming debt-free.

2. Emergency Funds

If you are a single father, it is essential to have an emergency fund set up to deal with unexpected expenses. Parents are wired to go above and beyond for their children. Having funds on hand can ease your anxiety in stressful times.

If you haven’t yet built an emergency fund, start now.

Is there a certain amount you should be saving?

• You should have 3-6 months of expenses saved at the very least.
• Follow it up with a safety net of one year’s expenses.
• Next, build on three years’ worth of expenses based on inflation. That will protect you and your kids from an emergency draining you of mental peace.

1. Insurance

As a single father, your children only have you to rely on for their needs.  Financial planning and analysis are key elements of ensuring your children and you live a happy, financially secure life. This requires preparing for the good and worst days. You must be financially ready for any situation. You take steps to ensure that your kids do not find themselves in an uncomfortable position in your absence. There will be unexpected challenges in life.

For example job loss, disability, etc. Hence, you need to be adequately insured. The necessity is even higher as a sole parent. Should a catastrophic event occur, the insurance payout would allow your kids to cover their daily expenses without sacrificing their current lifestyle.

It’s not difficult to follow these tips. To plan your financial journey effectively, you need the assistance of a financial advisor. Consider hiring a fee-only credible financial planner. Discuss your current standing, expectations, goals, and needs with them.

How would you like your children’s future to be? In terms of their education, marriage, lifestyle etc. You will receive holistic support in the best interests of your financial wellbeing.

Having so many responsibilities as a single dad can make life hectic and taxing. Your children will remember two things. What you did for them, along with the time you spent with them. Financially securing your family ensures you have time to celebrate little joys, be there for milestones moments and lead a stress-free life.

Whether your dreams are big or small, it is never too late to start planning for your finances and building your wealth. We will help build the financial plan and investment strategy you need based on your goals.