Have you had this experience already in your life. Suddenly single by chance or by choice? I would assume that most of the population has experienced this at one time or the other whether they wanted it to be or not. Break ups, divorce and even death can be devastating at any given moment.
How do can we combat and be ready at a moments notice financially in all of these cases? There are countless articles out recently stating how being single is an expensive venture, but being prepared and taking the steps to not be devastated is completely in your control from the beginning to the end of any relationship.
So what do we need to be aware of financially? Probably at the top of the list would be how well protected we are and how liquid are we when it comes to cash and emergency funds. Any occurrence whether it be medical, financial or job related can rock any bodies boat. By having the proper coverage, medical, home, renters, car, life and a myriad of other insurances can cover most any catastrophe, even becoming single. You don’t want to be left hanging on your own with any type of responsibility without having coverage.
Cash, cash provides a doorway to any decision we need to make at a moments notice. If a move is necessary, if there is a loss of job, attorney fees and or any other financial decision that needs to be made quickly cash will be your best friend. The rule of thumb is 3 to 6 months of cash to have access to at any time. So, how is this accomplished. Starting small with any habit can have exponential results. Adding to a savings account every time you get paid allows you to see progress in a savings account balance from day one. If a raise is in your future use that to increase savings. If a bonus is also a part of compensation don’t “live” on this but use it as a bump to that account annually. You will be surprised how quickly cash can accumulate.
Prepare for the future. Be aware of what it means to have a 401k, HSA or any other employer benefit that will work in your favor with tax efficient savings as well as matching contributions.
Have a professional in your life to help you organize your finances. Financial advisors are not just for investing knowledge, they are for planning for success in both insurance coverage and your future!
Now I know that budget is a dirty word but being single has it perks in the control you have over all of your finance without having any one else have a say so in any decision you make. Taking charge and understanding where your money is going month to month give you the power and direction you need to make the best decisions possible!
And what if one day you are no longer single, it just gives you even more knowledge and direction on who you may want to include in your next chapter.
- Women and Money: Suddenly Single By Choice Or By Chance - October 10, 2022
- Women and Money: Business Ownership - August 4, 2022