It is important because we both are not coming from rich families, and my husband is not doing the highest paying jobs. We need to do sacrifices and make effective money-saving strategies in order to live on a single income.
Below we mentioned some try and tested things that worked for us. These tips might not work the same for all, but I hope these ideas may help you on how to raise a family on a single income. Let’s start without wasting more time.
Tips to raise a child on a single income
Build Emergency Savings
If you already know how to avoid debt then it is good, but can you stay out of debt even in an emergency? Saving a little amount of money every month and building emergency savings can support you during emergency times. If you limit your expenses and save for 6-12 months as emergency savings, then it can help you!
Limit Debts
Trying to limit or staying out of debt is very important because it directly affecting living on a single income. Any type of debt can easily exhaust your money, so beware of it. I know some debts such as credit cards are hard to avoid. If you want to use your credit card to buy something, then it is better to avoid those purchases. Don’t forget that you are on a single income.
Start Work From Home
Earning some extra dollars while staying at home can help you. The easy way is to sell your unused items on Facebook or eBay like online platforms. If you have some creative skills such as making handmade items or having good writing skills then you make some money from home. Setting up your work from home can help you to earn extra money and contribute it to your savings.
Avoid Car Payments
Car payments slowly exhaust your money. I am personally not liked car payments. Instead of it, try to pay in cash if you have sufficient money or search for a good second-hand car. When you buy an older vehicle make sure you arrange a mechanic to check it before purchasing it. Also, check the vehicle service history and other records.
If you can’t have sufficient money to buy a vehicle, try to live with your single vehicle. It is hard, but you can save lots of money to spend on other occasions.
Stop Spending on Food
We all spend utmost of our money on food. Most Canadians spend half of their income on food away from their home, which cost them more on both side income and calories. The first rule to save money is to stop eating outside.
If you calculate your whole spending on food, you are shocked. Stop meeting and dinner with your friends at restaurants, and try some ways to prepare a party at your home and under your budget. Also, try to save money on your groceries by start shopping at low-cost grocery stores.
Try to Pay-Off Your Credit Debt
Before planning to live with your children on a single income, it is very important to pay off your credit card debt completely. Credit card debt is very expensive with the addition of extra interest rates. Having credit debt is a guarantee of financial trouble and you can never reach your money goals. The faster you pay your credit card balance, the sooner you can start saving your future wealth.
Opt Profitable Hobbies
Staying at home with kids might be boring at some time, and what bored people do? They spend their money shopping. What is the best way to avoid such a dilemma? Try some hobbies that directly or indirectly help to earn something. Home vegetable garden, or starting a blog on your favorite topic is not only killing your boredom but you can also some money.
Make a Budget
Budget is a very important part to successfully live on a single income. You and your husband need to sit together and make a budget and seriously stick to it. Make a realistic budget that you can easily accept. Limit the over expenses and avoid the big purchase beyond your budget. A good budget always helps you to be a winner in your financial odd days and also keeps you out of the debt cycle.
Final Verdict
Once you seriously follow the above tips or search more about how to live on a single income over the internet, you can easily manage your life on a single income in Canada. A good strategic plan and budgeting your finances make it easy for you and your family to survive on a single income.
You can join the support groups and meet the communities that live on a single income. Learn something new from their experiences and implement it in your life. At any stage of life if you need financial assistance, don’t be hesitate and find reputable lenders for child tax payday loans or other types of credit forms. Be safe, be happy!
Article Source: https://www.whizzpaydayloans.ca/blog/how-to-raise-a-child-on-a-single-income/