How to manage your finance and thrive as a single mother ft. CA Sakchi Jain

Smrithi Mohan
New Update
managing finance

Understanding finance may be hard, but content creator and CA Sakchi Jain helps us decode ways in which every single mother can look after and manage their own money.

If there's anything as scary as life itself, it's being able to understand and manage our finances as an adult. Understanding how money works feels like a task in itself but it's not difficult when one puts effort into learning it. Especially when you are an adult responsible for a child. Raising children by yourself requires a lot of resilience, commitment, and, above all, love. It's no secret that these challenges can take a toll on our well-being with financial health often bearing the brunt of the burden. Finding financial stability as a single mom might seem tricky but content creator and CA Sakchi Jain feels it's completely doable with the right plan and help. 

Here's what she has to say!

Firstly, budgeting becomes your best friend. Start by listing all your expenses, from essentials like rent and groceries to extras like entertainment. Differentiate between needs and wants, and prioritize accordingly. A popular rule to follow is the 50:30:20 rule, which means 50% of your money goes to needs, 30% to wants, and 20% to savings and investment. It helps to keep things simple and ensures you're putting away money for later while still enjoying life a little.

Also Read: 3 creators share some of their most cherished Mother's Day memories

You can also keep these points in mind to lead a stable financial life

Create a plan for the future 

There are many ways to create a plan and you can always start simple. Make a list of your short-term, medium-term, and long-term goals. Short-term goals are things you want to do soon, like paying off a small debt. Medium-term goals are things you want to do in the next few years, like buying a car or saving for a down payment on a house. Long-term goals are big dreams you have for the future, like your children’s higher education, and start investing in each of them.

Get life insurance 

Let's say you're not around anymore, the insurance company will give some money to your family to help them out. It's like a backup plan to make sure they have what they need, even if you're not there to provide for them.

Emergency fund

Apart from these steps, it's also important to start building an emergency fund. This fund acts as a safety net for unexpected expenses that might come up, like a sudden medical bill. Start by setting aside a small amount of money each month, no matter how small. Aim to have an emergency fund that can cover about six months' worth of your expenses. 

A great support system

Surrounding yourself with supportive people is crucial. Having someone to talk to about money worries will make you feel better and less stressed out. But at the same time, it's really important to be careful about who you trust with your money. Even if they're family or close friends. People may take advantage of you, especially when you're feeling vulnerable. Instead of relying solely on them, it's better to talk with a financial advisor when you're unsure about money. These professionals are finance experts and can give you advice tailored just for you. It's like having a trusted guide who can help you make smart decisions with your money, without worrying about being taken advantage of.

Last but not least, it's important to teach your child about money. Teaching them about budgeting, saving, and the importance of making smart financial decisions will empower them to manage their money wisely as they grow older.

Hope this Mother's Day, these tips help you understand how to manage your money!

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