We all want easy tips and ideas for a subject that isn’t always easy: money.
Our finances can be tricky sometimes, especially as a solo mom. Never enough, it seems, and there are always 10 different things vying for our paycheck.
How to make sense of it all, and make sure we are putting our resources to the best use?
We sometimes need a money makeover.
Here are a few easy ideas to save more money, and better organize your finances:
- Corral your change in a jar – it’s pretty basic, and almost a cliché, but it does work. If you have loose change floating around, put it together in a jar and let it collect until the jar is full. Then take it to your bank, and put it in your savings account. A nice little windfall with no extra effort!
- Automate your checks and your savings – if you don’t already do so, ask your employer to auto-deposit your paycheck. We may like the feeling of going to the bank and depositing that paper check each week/month, but it’s easier to have it automatically deposited. It saves one more errand that needs to be run, and lessens the chance you will keep some of the cash while at the bank. The whole amount goes into your account, and you can also set up automatic transfers to your savings account, and automatically pay bills. Fewer headaches AND more money! Here are two posts about those things: How To Save Money – Automate Your Savings! and 5 Tips To Easier Bill Paying.
- Wondering how to fund that emergency fund? Sell some of your stuff. There are a few good phone apps you can use to sell stuff, and numerous local groups on Facebook to advertise stuff for sale. Just join a local Facebook group in your area that lets members post what they have to sell.
- Assess your financial goals – sit down and write out short-term and long-term goals annually. Short-term goals may be paying off a credit card, or saving up $1,000 for an emergency fund. Long-term goals would include retirement, travel, etc. Planning and then writing out your goals helps to keep you focused on where you are headed, and keeps you on the right track.
Each fall, make sure you have the correct withholding for your taxes. Check and make sure that your withholdings are set the way you need them, and that you have set aside enough money to pay taxes, if necessary. It’s important to make sure you have enough set aside to pay your tax bill well before the annual deadline, generally April 15. The amount of federal income tax you owe each year depends in part on your tax bracket. For example, for the 2018 tax year, single filers with taxable income between $9,526 and $38,700 are in the 12 percent tax bracket (which means that 12 percent is the rate that applies to income in that range), but many factors affect the final amount of federal income tax you owe in any year. In most cases your employer withholds taxes from your paycheck, although the amount withheld will often differ from what you ultimately owe. If you are self-employed, however, you will likely need to pay an estimated amount of tax instead, usually on a quarterly basis. – 7 Steps To Stay Financially Fit
- Make sure you have designated beneficiaries whom you want to have receive your life insurance, retirement account, etc. if something should happen to you. If you already have beneficiaries listed, review them to make sure things haven’t changed.
- Stay Organized! Organize you desk, file folders, tax documents, etc. The more organized you are with your finances and the tools you use, the more efficient you will be – and the less chance that you will not have what you need when you need it. Can’t find the bill that needs to be paid? you might also end up paying a late fee. Make sure you have access to all your financial paperwork and tools, and you will save money in the long run.
Here are a few more tidbits of information about managing our finances. These can apply to anyone, widow or not. Got them from the September 2012 of “O” Oprah Magazine. (I know, that’s from quite awhile ago, but this part of the post is an old one that was re-posted from a previous blog.)
I hope you find these helpful!
Do This Now:
“Electronic bills are great – unless they are lost in a crowded in-box. Set up a separate e-mail account (e.g. alexa.bills@emailhostdotcom) to keep your e-bills orderly.” – Alexa Von Tobel, founder of the personal finance Web site learnvest.com
“Challenge yourself with a 21-day financial fast, during which you eliminate all spending except for the bare essentials. Halting unnecessary purchases forces you to reflect on how much you consume.” – Michelle Singletary, “The Color of Money” columnist for The Washington Post.
“Stop delaying your savings! So many women say they haven’t done enough research to enroll in a 401(k) plan, but it’s far better to act now and tweak your allocations later than to delay building any security at all.” – Mary Caraccioli, host of We Owe What? on the Live Well Network.
Do This Soon:
Step back and look at the big picture. Fifty percent of your take-home pay should be allocated for essentials, 20 percent should go toward savings and debt, and 30 percent can cover everything else.” – Alexa Von Tobel
“Keep a spending journal for 30 days. A month’s worth of data makes it easier to see where you can cut back.” – Michelle Singletary
“Pick one intimidating financial situation – whether it’s saving for a house or getting rid of your debt – and meet with a financial advisor. You can find one through the National Foundation for Credit Counseling (nfcc.org). A single session can put you on the right path.” – Mary Caraccioli
What’s your favorite financial hint from your own money makeover? Share it with us so we can all benefit.
Want more financial posts to read? Here are some:
Debt Snowball – How It Worked For Me,
Wells Fargo Credit Line – PAID OFF!,
Tithing as a Widow – Can You Afford It?,
Get Out Of Debt – 3 Keys That Helped Me
Cut Grocery Spending Down To Size
How To Save Money – Automate Your Savings!
Joan Merrell is a solo mom to two daughters, a widow, and a security technician at Oregon State Hospital. Oregon native, farm girl and 4H leader, maker of homemade bread and chocolate chip cookies, she balances (more or less) full-time work with caring for a home filled with a teenage daughter, 2 entitled cats, and a hyper German Shepherd. She enjoys gardening and hiking, reading Ted Dekker and Frank Peretti novels, and searches for a few spare minutes to communicate with her grown daughter and son-in-law on her Marco Polo app. Find out more about Joan here.
I used to log every penny I spent. I really should get back into that habit so I can where the money goes.