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How to Financially Survive as a Single, Self-Employed Mother

A child may be a blessing but that does not mean the responsibilities that come with a child are always easy, especially for single mothers. You have a lot on your plate, and you are attempting to face this world as a self-sufficient woman. The following are a few financial tips to help you survive and make it on your own terms.

Be Debt-Free

One main reason money can be hard to stretch is because you have bills to pay. Find a way to reduce them, and avoid new debt, such as credit cards or even car loans. The key here is to live within your means and skip purchasing things you simply cannot afford, which should help free up some of your cash.

Set Some Aside

You are probably worried about having enough money saved for your retirement. You do not want to become a burden to your child. The best time to start thinking about this is now, and you do have a few options as a self-employed individual. A good option to consider is a simple IRA or a SEP IRA, which is basically a pension that allows you to set money aside pre-taxes.

Consider Living Arrangements

Housing is perhaps the most aggressive money-devouring bill that people have to deal with. You have to find a way to reduce this bill, and the best way to do this is to own a home as it may be cheaper than renting. The amount you end up paying for a home is relatively fixed while rent could go up at any given time. Plus, you have to consider your child and the environment that he or she might be exposed to in a large apartment complex. Consider looking at single family homes for sale in your area to reduce living expenses.

Diversify Your Money

As a single mother, you may not have much time. You should figure out how to grow your money without much input, which should lead you to investing. Yes, you can invest in the stock market, but there are other forms of investments, such as diamonds or antique vehicles that you can later sell at a higher price. You can even try your hand at the increasingly profitable cryptocurrency market. Do your research, take your time with what you decide, and remember to not place all your eggs in one basket.

Be sure to consider talking to a financial advisor or counselor. These individuals know how to manage money and can impart some financial literacy to you. Hopefully, some of these points help you survive as a single, self-employed mother.

Tim Esterdahl

Tim Esterdahl is the editor of IFCS blog. He is a married father of three and enjoys golf in his spare time.

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