Single people are often thought to have it easy when it comes to money management. There is nobody to derail their financial plans and their income can stretch a lot further because it only has to take care of a single person. Despite some of the more obvious financial benefits of living the single life, there are also a few down sides.
Take a look at some of these tips that are aimed at helping single people to dodge the areas that might otherwise make gaps in their financial plans.
Be Accountable to Someone
While there is nobody to set you back, being single also means there is nobody to root you on. Often sticking to financial commitments needs some outside reinforcement or encouragement. Just like it is easier to achieve fitness goals with a gym buddy, hitting your financial targets can benefit from a little nudge from a friend. You can get around this by letting someone in on your goals and then giving them permission to ask about your progress.
Get Convertible Term Insurance
The major reason to get whole life insurance is to provide for those you leave behind and if you are not married and you have no children, it makes sense to spend as little as possible on life insurance and devote your money to other instruments that can make money for you instead.
Start an Emergency Fund
One of the financial considerations of being single is facing the reality that you do not have another income earner to fall back on in case of an emergency. This means if you fall ill or lose your job you must bear the financial burden all on your own. This makes an emergency fund extremely important if you are single.
Just because you are single and living a carefree life doesn’t exonerate you from making plans for your future. You should evaluate your goals and place a price tag on them. You goals should be reassessed periodically, especially if your status changes but generally you should know what you want your retirement to look like, whether you want to invest in a house or travel the world and start working towards these goals as soon as possible.
Make an Effort to Save When You Can
Single living often means eating out and generally spending a lot of money on entertainment but it doesn’t have to be. You can start living a frugal single life and pay attention to the areas that can potentially save you money. Cutting back on utility bills or saving on your food expense might be a good place to start.
Singles need to pay as much if not more attention to money management and these tips are a step in the right direction.