spending

5 Quick Tips To Save Money

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Review your miscellaneous spending this month and find ways to cut back. Try to give up a subscription you don’t really need, brown-bag it to work another few times a week and skip the gym membership by getting your workout at home. Small purchases add up quickly!

Fast food is super convenient — and expensive. It’s not that great for your health, either. Try to slow down on your fast-food purchases this month by thinking ahead. Keep some snacks in the car to help tide you over when you’re pulling a late night and have some drinks on hand as well. Save time, calories and money by putting the brakes on your fast-food purchases.

It’s time to get your house ready for winter! As you weather-strip your home and check for air leaks, look for exposed pipes as well. If you find any, wrap and insulate them carefully so they don’t freeze up when the temperatures fall. A few minutes of your time now can save you the hassle and cost of fixing burst pipes in the dead of winter.

Give your car the care it deserves by getting it a routine service check this month. You’ll possibly catch any developing issues before they become major, and add years of life to your vehicle. You may even get better fuel mileage by making sure everything is in proper working order.

Putting aside money each month to use for some vague purpose sometime in the future can be super challenging. Make it easier by creating a spectacular goal for your savings. Is there a dream vacation you’d love to take? Maybe you’re hankering after an RV or a new entertainment system. Write down your secret dream and figure out exactly how much money you need to make it happen. Then, set up an automatic monthly transfer from your Destinations Credit Union checking account to your savings account to make it even easier. Start your savings momentum today!

Your Complete Guide to Using Your Credit Cards

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Q: I’d love to improve my credit score, but I can’t get ahead of my monthly payments. I woman with credit card in hand surrounded by shopping bagsalso find that my spending gets out of control when I’m paying with plastic. How do I use my credit cards responsibly?

A: Using your credit cards responsibly is a great way to boost your credit score and your financial wellness. Unfortunately, though, credit card issuers make it challenging to stay ahead of monthly payments and easy to fall into debt with credit card purchases. No worries, though; Destinations CU is here to help!

Here’s all you need to know about responsible credit card usage.

Refresh your credit card knowledge

Understanding the way a credit card works can help the cardholder use it responsibly.

A credit card is a revolving line of credit allowing the cardholder to make charges at any time, up to a specific limit. Each time the cardholder swipes their card, the credit card issuer is lending them the money so they can make the purchase. Unlike a loan, though, the credit card account has no fixed term. Instead, the cardholder will need to make payments toward the balance each month until the balance is paid off in full. At the end of each billing cycle, the cardholder can choose to make just the minimum required payment, pay off the balance in full or make a payment of any size that falls between these two amounts.

Credit cards tend to have high interest rates relative to other kinds of loans. The most recent data  shows the average industry rate on new credit cards is 13.15% APR (annual percentage rate) and the average credit union rate on new credit cards is 11.54% APR (note: Destinations Credit Union has a lower rate!).

Pay bills in full, on time

The best way to keep a score high is to pay credit card bills in full each month — and on time. This has multiple benefits:

  • Build credit — Using credit responsibly builds up your credit history, which makes it easier and more affordable to secure a loan in the future.
  • Skip the interest — Paying credit card bills in full and on time each month lets the cardholder avoid the card’s interest charges completely.
  • Stay out of debt — Paying bills in full each month helps prevent the consumer from falling into the cycle of endless minimum payments, high interest accruals and a whirlpool of debt.
  • Avoid late fees — Late fees and other penalties for missed payments can get expensive quickly. Avoid them by paying bills on time each month.
  • Enjoy rewards — Healthy credit card habits are often generously rewarded through the credit card issuer with airline miles, reward points and other fun benefits.

Tip: Using a credit card primarily for purchases you can already afford makes it easier to pay off the entire bill each month.

Brush up on billing

There are several important terms to be familiar with for staying on top of credit card billing.

A credit card billing cycle is the period of time between subsequent credit card billings. It can vary from 20 to 45 days, depending on the credit card issuer. Within that timeframe, purchases, credits and any fees or finance charges will be added to and subtracted from the cardholder’s account.

When the billing cycle ends, the cardholder will be billed for the remaining balance, which will be reflected in their credit card statement. The current dates and span of a credit card’s billing cycle should be clearly visible on the bill.

Tip: It’s important to know when your billing cycle opens and closes each month to help you keep on top of your monthly payments.

Credit card bills will also show a payment due date, which tends to be approximately 20 days after the end of a billing cycle. The timeframe between when the billing cycle ends and its payment due date is known as the grace period. When the grace period is over and the payment due date passes, the payment is overdue and will be subject to penalties and interest charges.

Tip: To ensure a payment is never overdue, it’s best to schedule a time for making your credit card payments each month, ideally during the grace period and before the payment due date. This way, you’ll avoid interest charges and penalties and keep your score high. Allow a minimum of one week for the payment to process.

Spend smartly

Credit cards can easily turn into spending traps if the cardholder is not careful. Following these dos and don’ts of credit card spending can help you stick to your budget even when paying with plastic.

Do:

  •  When making a purchase, treat your credit card like cash.
  • Remember that credit card transactions are mini loans.
  • Pay for purchases within your regular budget.
  • Decrease your reliance on credit cards by building an emergency fund.

Don’t:

  •  Use your credit card as if it provides you with access to extra income.
  • Use credit to justify extravagant purchases.
  • Neglect to put money into savings because you have access to a credit card.

Using credit cards responsibly can help you build and maintain an excellent credit score, which will make it easier to secure affordable long-term loans in the future.

Destinations Credit Union offers a low rate Mastercard Credit Card.  We also have options to help you establish or repair your credit if you need that.  If you need help improving your credit score or budgeting, contact our HOPE Inside financial well-being counselor.

Your Turn: How do you use your credit cards responsibly while keeping your score high? Share your best tips with us in the comments.

Sources:
https://www.moneyunder30.com/how-to-use-a-credit-card-responsibly
https://www.npr.org/2020/02/13/805760560/u-s-credit-card-debt-hits-all-time-high-and-overdue-payments-rise-for-young-peop#:~:text=Americans%20owe%20nearly%20%241%20trillion,rising%2C%20especially%20among%20young%20people
https://www.debt.org/faqs/americans-in-debt/
https://www.creditcardinsider.com/learn/using-credit-cards-responsibly/

 

8 Ways To Beat Holiday Stress

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‘Tisgirl sitting in front of fireplace looking stressed the season to be merry-except sometimes, it’s not.

While the entertainment industry would have us think the holidays are always full of good cheer, lots of laughs and warm feelings, the reality can, unfortunately, be otherwise.

Sometimes, all that frenzied consumerism, party-hopping and crazy schedules can bring out the worst in the people we love. Other times, a challenging life situation, such as a recent divorce, death in the family or financial struggles, are painfully magnified when everyone around you seems to be in such wonderfully high spirits.

No one wants to be the Grinch on Christmas. So, if you tend to feel stressed or down when the holidays roll around, here are eight tips to help you turn that frown into a genuine smile.

1. Watch the buck

Nothing kills the holiday cheer like a mountain of debt. Stick to a budget when doing your holiday shopping and only spend what you can actually afford. Be extra careful not to overspend as the holidays draw near, and you’re experiencing pressure to finish your shopping in time. If you find yourself running low on funds, consider arranging a gift exchange, like a Secret Santa, or giving some homemade presents this year.

2. Give back

The holidays can sometimes leave us feeling down because of all that emphasis on the perfect gifts. Opening up a present is always a thrill, but giving to others creates lasting joy. In fact, according to the American Psychological Association, one of the best ways to reduce stress is to give back to your community.

Beat the stress this season by sharing holiday cheer with those who are less fortunate. There are so many ways to spread joy! You can bring some toys to the children’s ward at the local hospital to brighten up a sick child’s holiday. Use your time off from work to volunteer at a soup kitchen. Dress up your family in their ugliest Christmas sweaters and holiday hats before visiting the closest nursing home to put a smile on the residents’ faces.

When you give, you always give most to yourself.

3. Stick to a schedule

Part of the holiday experience is enjoying late nights and/or early mornings. Sometimes, though, all that lazing around and lack of quality sleep can make stress levels soar. There’s no need to be a stickler for your regular routine on the holidays, but it’s a good idea to keep some sort of schedule. Make sure you’re getting enough shut-eye, and if a physical workout is part of your daily routine, don’t neglect it over the holidays. You’ll always feel better when you’re taking care of your body. And, if you’re mindful about your habits, you may not even have those extra pounds to work off in January!

4. Party smart

Cheers! Can I pour you another glass of … soda?

If you like to party, you can end up getting sick over the holidays. All that heavy drinking and loading up on refined carbs can really do your body in. Do yourself a favor this year and watch what you imbibe. Enjoy a glass or two of your favorite alcoholic beverage, but try to keep the drinking to a minimum. Similarly, it’s OK to break your diet over Christmas, but it’s best not to go overboard. You don’t need to feel bloated and sick to enjoy the holidays. Keep the stress out by treating your body well.

5. Delegate

Are you hosting a crowd this Christmas? Guests can be great fun, but all the extra work can bring your stress levels through the roof. Here’s the good news: You don’t have to do it all! There’s nothing wrong and there’s everything right with asking for help. Don’t feel bad about having your guests and family members pitch in with cooking and cleaning. They’ll feel better, too, when they’re sharing the workload. Plus, everything is easier when there are more hands on deck.

6. Take some “me” time

Whether you’re a closet introvert or you just need some time alone each day, the nonstop partying and a house full of guests can get to you after a while. It’s always a good idea to take care of yourself, and in the chaos of the holidays this need is often neglected. Consider running out to get yourself a manicure, taking a solitary half-hour walk or just locking yourself in your room after a long and loud day to savor the peace and quiet. You’re not being an antisocial snob if you need your “me” time; you’re just being human.

7. Give up the guilt

If you tend to over-analyze every interaction you have with family and friends, you can really beat yourself up over the holidays questioning everything you’ve said. Try to relax and to let go this season. So long as you’re reasonably pleasant and agreeable, you can give yourself a break.

8. Lower your expectations

A common cause for holiday stress is unrealistic expectations. It’s best not to build huge castles in the air by keeping your expectations to a minimum. There will probably be some minor, or even major, stressors this holiday, and not everything will turn out exactly as planned. All of that is OK. If you don’t expect perfection, you won’t be struggling with mountains of disappointment this holiday.

Beat the blues and put the cheer back into the holidays this year!

Here’s wishing you Happy Holidays from all of us here at Destinations Credit Union.

Your Turn: How do you beat the holiday stress? Share your best tips with us in the comments.

Sources:
https://www.psychologytoday.com/us/blog/life-without-anxiety/201212/10-tips-surviving-the-holidays
https://www.symptomfind.com/health/holiday-stress-management/
https://www.huffpost.com/entry/holiday-stress-tips_b_790222
https://www.apa.org/helpcenter/parents-holiday

Don’t Drink Your Wallet Dry!

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It’s hot out, so make sure you’re drinking up! In fact, the Food and Drug AdministrationMan pouring water from filter pitcher (FDA) recommends that adult males drink at least 11 cups of fluid a day and females drink 9.

What’s in your glass today? You might be a true coffee-crazy, cola-loving American, but water is your best beverage choice for your health and for your money.

However, did you know that bottled water may be draining your wallet dry?

It’s true. Many people pay huge amounts of money for bottled water without even realizing how inflated the price is. So, let’s take a look at the costs of bottled water when compared to ordinary tap water.

Although service charges, state taxes, and other fees may vary, 1,000 gallons of tap water will typically cost you about $11. With that amount of water, you could fill approximately 7,570 bottles of water at 16.9 fluid ounces each, with each bottle costing you less than a penny. It’s $0.0014 to be exact!

Assuming you drink three 20-oz bottles of water a day, you’ll need 1,095 bottles a year. If you’d fill those bottles with tap water, it’ll cost you just $1.53 a year. This means that, as soon as you’ve bought a day’s worth of bottled water, you’ve already spent nearly double of what an entire year’s worth of tap-water drinking would cost you!

Is that water starting to lose its taste yet?

This doesn’t mean you need to start chugging down awful-tasting tap water just to save on some costs. Luckily for you, there are many ways to get sweet-tasting water without busting your budget.

Here are some options you may consider:

DIY chilling

If you love the taste and convenience of bottled water, you can save big just by buying your bottles in packs of 24 and refrigerating them at home instead of buying them cold while on the go. Instead of $1 a bottle, you’ll pay just $0.16. If you drink three bottles a day, you’ll pay $175 a year. It’s still a lot more expensive than tap water, but it’s also a lot less than paying for cold bottled water.

If you’re out of the house for a while each day and you like your water freezing cold, you can freeze the bottles you’ll be using later in the day or invest in an insulated bag that keeps beverages cold.

Water coolers

They’re not just for catching up on the latest office gossip; water coolers can help you fill all your water needs at home. Of course, you’ll need to spring for the machine itself, but after that one-time cost ($170 on average), you’ll only be paying for refills.

Prices vary by companies, but a 5-gallon refill of spring or purified water will run you approximately $7. Stockpile your refills in the garage and order multiple bottles at once, and you can get discounts as steep as just $5 a bottle. That’s only $1 a gallon, for cold, delicious-tasting water. With each gallon filling 7.5 water bottles, you’re getting more than 37 bottles worth of bottled water for the price of 5 purchased bottles!

Pitcher filters

These handy contraptions snap right onto your pitcher of water and filter it on the spot. You can also purchase a pitcher with the filter already attached. Either way, you’ll have your bottled water needs met with just a one-time purchase that averages only $20.

The downside here is the minimal amount of water a pitcher filter can purify for you in one shot. If you drink large amounts of water or have lots of thirsty people around, this might not be the best option for you. If your water needs are modest, though, a pitcher filter can be a great way for you to get sweet-tasting water inexpensively.

Water treatment system

If you want to be able to get purified water straight from the tap, this is the way to go. Having an indoor water treatment system installed in your faucet will filter your water before you even turn on the faucet. The obvious benefits here are easy access to unlimited amounts of filtered water whenever you need it, plus purified water to cook with and to use for washing your dishes.

These filters run about $250 to $400 and usually work with one faucet only. Some companies will actually install a purified water tap alongside your existing faucet instead of filtering it. There are also companies that offer a purification system for all the water in the house, but those will costs several thousands of dollars to install.

Take the tap challenge!

There are many ways to drink up, but tap water still holds its place as the cheapest option. Are you up for a challenge? If it’s a safe option in your area, try drinking only tap water for a month. You’ll save huge on drinking water costs and it may just become a lifelong habit!

Here are some ways to make tap water more palatable:

  • Slice citrus fruits and let them float in your pitcher to give your water a tasty zing.
  • Soak some pineapple chunks in your water for several hours and remove before serving.
  • Invest in a SodaStream to add some sparkle to your glass.
  • Freeze pureed blueberries and strawberries and use them as ice cubes.
  • Add some Crystal Light or another calorie-free flavoring mix.
  • Steep fresh mint leaves in your pitcher before drinking.

Don’t let your hard-earned money get washed down the drain. Drink wisely this summer and save big!

Your Turn: How do you hydrate? Share your own cost-effective water sources with us in the comments!

SOURCES:
https://20somethingfinance.com/cost-savings-drinking-water/
https://www.google.com/amp/s/www.thepennyhoarder.com/food/bottled-water-cost/amp/
https://www.shape.com/healthy-eating/healthy-drinks/20-tips-make-drinking-water-taste-better
http://all-about-water-filters.com/top-easiest-diy-water-filters-you-can-make-at-home/
https://www.deerparkdelivery.com/_mobilecmsviewer.cfm?id=3
https://www.fixr.com/costs/water-purification-system

Do you and your money care about the same things?

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By Heather Marshall, CFPC, MPP; Educator, AAA Fair Credit Foundation/Utah SavesPiggy bank in front of blackboard

As the old adage goes “Actions speak louder than words.” On the topic in question, it is fair to say spending is an action that implies values. Which explains why the nature of finances can be so personal, and challenge us to ask the question, what do we value?

Is it:

  • Family?
  • Friends?
  • Health?
  • Happiness?
  • Travel?
  • Spontaneity?

In asking these questions, spending becomes a means of self-examination shedding light on our actions and our values. Sometimes they don’t add up and when they don’t add up life can get off track. Such as if you value health, and yet find on your bank statement a lot of transactions related to unhealthy fast food. Thus, prompting the questions:

Does your money care about the same things you do?
Is your budget going towards things you really care about?

In which case steps can and should be taken to realign spending with what we value. Such as:

  • Review expenditures and categorize them to see where the money is going. Know where you are now so you can make a plan going forward.
  • Recognize there may be some items in your budget that need adjusting, but will take time to achieve. For example, moving closer to work to cut down on travel and provide more family time will require time and planning.
  • Set goals to getting your money on track.
  • Make your goals visible. When you have the impulse to spend on something you really don’t value, you can stop yourself because you have visual reminders around you. Create visuals with pictures of your goals on the wall, on our computer, on your phone. Keep it readily in front of you.

Remember, money can enable a lifestyle of values and goals that reflect us. Now that you are aware of these tendencies and about what you value in life…go make your money care about what you care about.

Am I A Shopaholic? How To Determine If You Have A Serious Problem

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Q: I love shopping. It makes me happy! I don’t go into debt to cover my habit, but I do go shopaholicover my budget. Quite often, actually. Am I addicted to shopping?

A: Your problem is not uncommon.

Though a true shopaholic is hard to quantify, it is estimated that up to 12% of Americans suffer from a shopping compulsion.

It’s important to note, however, that most people are not truly addicted to shopping. A bona fide addict, or one who would be thus diagnosed by a competent psychologist, would go to extreme measures to support their habit. They may even resort to thievery and the like.

However, compulsive shopping definitely exists and it can certainly impair one’s quality of life.

Are you a shopaholic? You may be if this checklist describes you:

  1. You have unopened and tagged items hanging in your closet
  2. You tend to shop beyond your means
  3. You often purchase items for which you have no use or need
  4. Disagreements and disappointments trigger shopping trips for you
  5. You feel a thrill when you make purchases, no matter the reason
  6. You often feel remorse after making a purchase
  7. You try to hide your purchases from family members
  8. On days that you don’t shop, you feel anxious and unsettled

Why do people become compulsive shoppers?

Like all addictions, shopping works to fill a void. Compulsive shoppers may be feeling lonesome, depressed or anxious. Shopaholics experience a rush of dopamine from shopping, which makes them feel better and has them craving that rush again.

While it’s normal to feel a thrill when you find that perfect pair of jeans or buy yourself a new phone, it isn’t normal to feel this thrill when doing your grocery shopping or buying school supplies for your kids. It also isn’t normal to feel out of sorts on days that you don’t shop.

Ironically, the act of shopping ultimately makes people feel worse. The guilt that accompanies overspending, coupled with the shame of not being able to control the habit, leaves the shopper feeling more down and anxious than they were to begin with.

To take it one step further, people tend to make big purchases following a big disappointment. Say you were turned down for a job and then go out and buy an expensive pair of shoes. Your bruised ego might be temporarily soothed. But, in the long run, the purchase will make you feel a lot worse.

“Buying and displaying products to compensate for our `psychological blows’ might sometimes backfire by reminding us of our setbacks and failures,” explains Monika Lisjak, Ph.D., and assistant professor of marketing at Erasmus University.

In other words, your brain will now associate that purchase with your rejection, and you’ll feel that hurt every time you wear those shoes.

Unfortunately, in an era of frenzied consumerism and excessive advertising of every kind, compulsive shopping can be difficult to control. If you think you might be a shopaholic, don’t despair. With a bit of planning, discipline and help from family and friends, you can kick the habit for good.

Here’s how to curb the urge to splurge:

A.) Talk it out

When you feel a shopping binge coming on because of a rejection, a dashed hope or another kind of emotional overload, call a friend. Talk through your feelings instead of smothering them in unnecessary and expensive purchases. You’ll feel a whole lot better afterward, and of course, it’ll be easier on your wallet!

B.) Cash and debit only

When you’re shopping, use cash or a debit card connected to your checking account balance. This will force you to stick to your budget and keep you from overspending. If you don’t like the idea of carrying a stack of greenbacks, you can also use a prepaid gift card. There’s no way you can overspend when the limit has already been set for you.

C.) Avoid temptation

If you know you tend to buy more than you need in certain stores, keep away from them until you have your habit under control.

D.) Identify triggers

The next time you feel the urge to shop, take note of what’s got you feeling that way. Whether it’s an argument with a loved one or a talking down from your boss, you’ll be better equipped to deal with these triggers when you learn to recognize them. If you don’t want to talk out these feelings, get creative and come up with a way to deal with them that doesn’t involve spending. You can hit the gym, listen to music, or watch reruns of your favorite TV show to help you feel better.

E.) List it

Shopping lists aren’t just for groceries. When you need to shop for anything, first create a detailed list of everything you need. This will help you buy only what you need and minimize your spending.

If you feel like you’ve got a serious problem and you’re in over your head, we can help. Call, click or stop by Destinations Credit Union today to ask about debt management and other financial services. We’ll help you get your finances under control!

Your Turn: Based on what you’ve read in this article, do you think a little retail therapy is ever warranted? Why or why not? Share your thoughts with us in the comments!

SOURCES:
https://www.google.com/amp/s/amp.livescience.com/2338-truth-shopaholics.htmlhttp://www.psychguides.com/guides/shopping-addiction-symptoms-causes-and-effects/  
https://lifereimagined.aarp.org/stories/39576-Why-Retail-Therapy-Makes-Us-Feel-Bad-Not-Good  
https://www.moneytalksnews.com/7-signs-youre-shopaholic/  
http://business.time.com/2013/04/16/is-retail-therapy-for-real-5-ways-shopping-is-actually-good-for-you/

Financial Tips For Single Parents

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Smart money management is always important, but it can take on more urgency for mom and childthose who are without a partner. Whether you’re divorced, widowed, or single by choice, single parenting brings unique budgeting challenges.

Marilyn Timbers, a Connecticut-based financial advisor, says of having to raise a child on one income: “Children are a joy, but they do not come cheap.” The U.S. Department of Agriculture notes in a report that it costs an estimated $241,080 for a middle-income couple to raise a child to age 18, and some single parents have to shoulder that responsibility alone. Even if child support is adequate – unfortunately nearly 50% of that support is never paid – you’ll do yourself a favor if you think ahead about financial matters as a single mom or dad.

Estate planning is your first priority, according to Lisa Hay of Ascend Financial. It’s essential to make arrangements for your children should you become incapacitated, and this means spending time on two documents that no one enjoys thinking about: a will, which specifies a guardian for your children and how you’ll pass assets down to them; and a “power of attorney,” which gives someone the legal right to make decisions on your behalf if you’re unable to do so.

You may also want to set up a trust. A trust is a legal structure in which your assets can be held for the children. It is overseen by a trustee. And check with your employer to see if it offers a disability benefit. Generally, you will get a reduced income amount when you claim disability – anywhere from 50% to 70% of your salary. “Your income is your most important asset,” says Tom Morrill, owner of Morrill Insurance Group. Insuring it can be especially crucial for single parents who don’t have a second income to cover a gap.

Hay also says be sure to have life insurance. What you purchase will depend on your finances, but a term policy is most economical because it’s a straightforward death benefit. A healthy 33-year-old woman, for example, would pay roughly $240 a year for a 20-year term, $500,000 life insurance policy. This would get your child through college should something happen to you.

Health insurance is “the number one insurance need for a single parent,” according to Morrill, who considers life insurance a close second. People often complain about the cost, but if you’re uninsured, a serious medical procedure or hospital stay can be disastrous to your finances. And, of course, losing a job or becoming ill is still more catastrophic as a single parent than as part of a two-income couple. A recent Harvard study revealed that 62 percent of bankruptcies were caused by medical debt. You can comparison-shop for policies at your state’s marketplace or at HealthCare.gov.

Along with the rest of your boring-but-necessary financial thinking, don’t forget about tax breaks. If you’re a single parent, you should probably file as head of household (not as single) because you’ll often pay less and get to claim a higher standard deduction. You can also claim exemptions for yourself and each qualifying child. You also might qualify for the earned income tax credit, the child and dependent care credit (if you pay someone to care for your kids), and the child tax credit.

As far as day-to-day household operations, here are a few more things to keep in mind:

  • Credit cards – In The Financial Guide for Single Parents Workbook, Larry Burkett warns single parents that, while credit cards may seem like an easy way to fill in the gaps of a decreased income, it’s wise to avoid using them as much as possible.
  • Shopping in general – Many single parents have to make lifestyle adjustments after a divorce or the death of a spouse. You may need to consider moving or changing your spending habits. Burkett notes that lots of people like to go shopping to cheer themselves up, but the added debt you’ll incur will only make you feel worse. This even applies to groceries, which are an expensive part of the budget. Plan that trip carefully, too, so you can better avoid impulse buying.
  • Holidays – Guilt causes many single parents to overindulge their children, even if they can’t afford it. This is especially true during holidays and birthdays. Be sure to set designated amounts for gifts, and stay within the budget.
  • Ask for help – Check with your credit union for financial advice. And there are many nonprofit organizations with programs specifically designed for single parents.

Whatever your income, it’s important to give yourself a safety net, because emergencies happen. Put aside a little bit of money from each paycheck to set up an emergency fund for car repairs, broken refrigerators and other realities of life. As a general rule, experts recommend having six months’ worth of non-discretionary expenses in an account that is separate from the one you use for daily expenses. That could be a savings account or possibly a low-risk investment account.

Bucket budgeting can help, says Jan Cullinane, author of AARP’s The Single Woman’s Guide to Retirement. That means creating four different accounts: one for fixed monthly expenses such as food and bills, another for long-term expenses like retirement or replacing appliances, a third for emergencies and a fourth for discretionary spending.

“Put the appropriate amount of money into the first three, and whatever is left is your discretionary or ‘fun’ spending,” says Cullinane. “If there is nothing left for that month in the ‘fun’ bucket, you simply go without – you don’t dip into the other buckets. Harsh, but necessary.”

And it’s more doable than you’d think. One study asked people if they could save 20 percent of their income. Most respondents said no. But, when asked if they could live on 80 percent of their income, most said yes. “Be aware of how you frame questions to yourself,” Cullinane says. “You might be surprised.”

Your Turn: Have you faced tough questions and financial circumstances as a single parent? What were the most useful solutions you found?

SOURCES:
http://www.familyminute.com/articles/parenting/single-parenting/financial-pitfalls-for-the-single-parent/#.WTnLa2jyvIU 
http://money.usnews.com/money/personal-finance/articles/2013/10/17/the-best-budgeting-strategies-for-single-parents 
http://www.cheatsheet.com/personal-finance/5-personal-finance-tips-for-single-parents.html/?a=viewall 
https://www.betterment.com/resources/life/family/7-financial-planning-tips-single-parents/ 
http://abcnews.go.com/Business/top-financial-planning-tips-single-parents/story?id=20906018#