A budget is important to know how much money you have coming in and going out each month. Divide your expenses into different categories and allocate a certain amount to each category. If you find that your expenses are larger than your income it will be important to either cut your expenses in certain areas or attempt to increase your income. It may be more important than ever for single people to live on a budget.
Be Prepared for Emergencies
Many financial experts suggest to have an emergency fund to cover unexpected expenses that may occur such as medical expenses or job loss. It is more important for single people to have money set aside for emergencies since they may not have anyone else to rely in the case of an emergency. When you are married or in a relationship, there may be a second income or the ability for the second person to bring in an income if needed.
One way to keep an eye on your spending is to track your spending. Keep track of everything you spend money on to see where your money is going and if any expenses can be cut back on. Money drains are small expenses such as water, coffee, magazines, etc that don’t seem like a big deal but can add up quickly.
Some expenses cost singles more such as mortgage/rent, travel and health expenses. In many cases when both parties of a couple work the mortgage or rent can be split between the two paychecks. Hotel rooms and cruise charges are based on double occupancy so if you are traveling solo you will end up paying more than if you were part of a couple. The health insurance coverage for a single person may be more than for a family plan.
Pay Yourself First
You may think you don’t have any extra money but when developing your budget make one category of money to set aside for savings. Many people think they should pay their bills first and see what is left, but many times there is not much left. Instead “Pay yourself first” and then set your spending on what is left. It is important to have savings set up for now and for the future since you may not have anyone else to rely for assistance.
You may save money be remaining single but you need to be careful when budgeting your money.