by: Kendrick Chua, the Wealth Warrior
Single moms are definitely of different breed. The strength and resilience in being both a father and mother to their children is something that has continued to amaze others, myself included. Faced with motivations that are larger than their life, they find themselves digging to where others have never dug before.
Single moms provide more than just inspirational stories. As a matter of fact, they have the most well-thought and executed financial plan that I have ever witness prompting me to believe that all of us can learn more than just a thing or two from them.
1.) Insuring themselves
Single moms are presented with this nagging question-how can my children continue living even if I don’t? As such, life insurance has never been more important to them. While their relatives may take on the responsibility of taking care of their children as what is typical of Filipinos; it would mean additional expenses to the foster family that may be experiencing their own financial struggles. The proceeds from their life insurance policies can help mitigate these costs. The children become blessings not burden.
How much should a single mom be insured then? There is no straight answer to the question. The need of one single mom may totally be different from another. But one thing is certain: the bigger the insurance coverage of their mom is, the better it is for the children.
2.) Following a strict budget
All single moms agree that having a strict budget is of utmost important with needs and wants distinctly identified. One single mom plans her budget on a monthly basis while another plans it on a daily basis. Budget management depends on their respective circumstances with each single cent being accounted for and with no resources being wasted, with good reasons.
Furthermore, they all agree that they cannot afford to spend more than they earn lest they fall into a vicious trap of debt. One single mom narrates that despite being offered five-six consistently, she still refuses. “What good is the bag I want to buy if I can’t provide food for my children” she explains.
3.) Learning to be prudent
Savings from discounts are a big help to them. It can mean additional money for food. That is why one single mom buys in bulk especially the school materials of her children and other commodities that are needed in the household. Although they try to look for the cheapest, they don’t sacrifice the quality.
Prudence doesn’t mean deprivation though. They still set funds for them to enjoy a little bit of pleasure. Dining out and trips to the spa and parlor are just some luxuries they can afford to spare.
4.) Being entrepreneurial
If the current income is barely sufficient, they look for ways to augment it. Baking pizza, pastries and cooking up other delicacies to sell is what one single mom does to earn additional income. At this point, a mother’s instinct goes into overdrive focused only on providing for the needs of her children. How does she sell it? One way is through her kids. It may well be the best way for her to teach business to them.
5.) Starting early
One single mom shares that she did regret not saving when she started working several years ago. Single and with no dependent, it was the perfect t time for her to accumulate substantial savings. But unfortunately, it didn’t work out that way. When she was thrust into motherhood unexpectedly, saving and accumulating became a more arduous task and not even prioritize. After all, excess funds are for the child.
The financial plan they execute can well be applied by any individual. Imagine how much you can accumulate by merely emulating them. Good luck!
