Single Moms: Thriving on Your Own

20 Oct Single Moms: Thriving on Your Own

Whether you’re a single mom by choice or by circumstance, you have a lot on your plate. It isn’t easy to manage childrearing and a career – especially if you don’t have a partner (or an involved partner) in your life.

Unfortunately, nearly one-third of Canadian mothers is living and raising children in poverty.[1] But being a single mother doesn’t automatically mean you’re doomed. Making smart financial choices can lead you toward financial security. Here’s how:

Earn like your life depends on it.

When it’s all on you, and there’s no one to fall back on, you have to step up your career game. Whether that means going back to school or spending a few more hours a day at work to get ahead, it may be worth paying for extra babysitting or other help in order to make that happen. It’s hard to do that when you’re struggling to pay rent or put food on the table, but taking the risk or pushing just a bit forward pays off in the long term.

Make a budget – and stick with it.

You may not be able to keep up with the Joneses, but you don’t have to, either. Think carefully about what’s important to you, and align your life with those values. You may not be able to afford a cruise over winter break or the “right” jeans for your teenager, but you have the ability to choose where to spend your money in a meaningful way to make your life – and your children’s lives – better. And maybe you’ll be able to afford those fancy things in the future, if you decide it’s a priority.

Pay off your debt and avoid future debt like the plague.

If you’re already sticking with a budget, it’ll be easy to avoid going into debt. But if you already have debt, it’s important to pay it off as quickly as possible. Prioritize those payments over just about anything else. Don’t finance any purchases – unless it’s a mortgage, a car loan or possibly a student loan. The less you owe, the easier it will be to reach your goals and the freer you are to make appropriate choices for you and for your children.

Save, save, save.

Build an emergency fund. It’s a good idea to have three months of income squirreled away in an account for those “just in case” moments. Maybe your car breaks down or you have a flood in your basement. Having extra cash around means you can take care of things when they happen without stress, rather than going into debt over it.

Set goals and work toward them diligently.

As the saying goes, if you don’t know where you’re going, any road will get you there. But when you set real, tangible goals, you’re more likely to achieve them. Think long and hard about the life you want for yourself – and your children. Then take steps to achieve it. You may find the goals are closer than you think.

Take steps to protect yourself and your future.

When you’re the breadwinner and childcare provider all in one, there is no margin for error. Your children are depending on you – and in many cases, on you alone – to take care of them. If the worst happens, you still need to be prepared. Disability insurance provides the extra if you are injured and can’t continue to work, and life insurance will cover your children if you pass away suddenly and someone else has to step in. Don’t forget to create a will, designating your beneficiaries and a caregiver for your children.

To learn more about planning your estate, contact us.

Listen to the audio version:

[1] https://canadianwomen.org/the-facts/womens-poverty/

Joel Rose

With over 35 years of experience, Joel Rose helps families – and their businesses – to prepare for the future. He offers guidance and support to help his clients create estate plans and succession plans that meet the needs of the whole family. Through his extensive professional and personal experience, Joel is known for his compassion and his ability to find a creative solution to meet each family’s needs.