Some people like being in a relationship, while others prefer to be single. And why not? There are some benefits of being single. You have the freedom and independence to do whatever you wish. When it comes to finances though, you also have no one to share the monetary burden.
So, you have the entire apartment, but you also have the entire bill. Being single can present some financial challenges. Keep on reading to learn about some valuable tips on how to save money and make the most of what you have when you are single.
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Say Hello to an Emergency Fund
Just a quarter of Canadians have an emergency fund. The whopping majority of consumers aren’t protected from unforeseen situations in their lives. You may rely on Quebec payday loans to cover your immediate needs for a couple of weeks but you need a solid emergency fund to cover unpredicted costs in the long run.
Sooner or later you will inevitably face financial emergencies and difficulties. So, having a safety net will protect you and your stability. Are you willing to be ready to deal with unplanned costs? Set up an emergency fund and automate your savings by putting a portion of your income aside each month. As a result, you will become not just independent in your daily life but also financially independent.
Make a Budget and Stick to It
We all need budgeting in our lives. When you are single, you need to stick to a budget even more. It’s essential to understand how you allocate the funds you earn to finance your monetary targets and where your money is going in general. Only a monthly budget can help you find the answers and be responsible with your spending. It would be great if we could live below our means every month.
It means you have enough funds to cover your necessities, savings, investments, as well as debt repayment. If you spend more than you earn, you should work on a monthly budget to reduce your spending. Eliminating or lowering non-essential spending categories will help you keep track of your monthly costs. There is a wide range of budgeting apps to assist you with that.
Find a Side Hustle
The research on Who Lives Alone found out that almost 4 million Canadians lived alone in 2016, more than double the number in 1981. Among 20-34-year-olds living alone and not in a couple relationship in 2017, sixty percent claimed they intended to marry or remarry, and seventy-two percent felt that they could live in a common-law relationship.
Being single means you have more free time. And as we all know, time is money. Thus, you may take advantage of your evening hours or weekend and find a side hustle to boost your earning potential. You can’t have too much income after all. You may sell your hand-made items on Etsy, offer up your services at Handy, become a freelancer through Fiverr, or become an Uber driver if you own a car.
Save for Retirement
It’s your own responsibility to think about your retirement when you are not married. Social Security might offer you additional income but it certainly won’t be enough if you plan to have a comfortable retirement.
Some people won’t even qualify for a pension from the Canadian government so it’s up to you to decide how you want to contribute to your retirement fund. Once you are still young and healthy, you have more opportunities to set aside larger sums to secure your future.
Retirement may not be on your wish list but it’s essential to plan these savings as well. Similar to your regular savings account and emergency fund, a retirement fund requires your effort and contributions unless you are planning to work for the rest of your life.
Make these savings automatic. This way you won’t need to worry about them. Even if you save $30 a week for your retirement, it’s better than nothing. Be consistent and responsible with your savings.
Cook Your Own Meals
Have you ever calculated how much you spend annually going out to eat? You would be surprised to check the real sum. Consumers who spend at least $10 or $20 a day on their meals will end up paying several thousand dollars on eating out per year. This is just for one person.
Some Canadians may be spending up to 25% of their annual income on food. Sounds unbelievable? You can lower these costs if you start cooking your own meals. Why don’t you use coupons and discounts to save your funds? Learn how to cook even if you haven’t done it before.
Repay Your Debts
While it’s necessary to cut down your spending and boost savings, you shouldn’t also forget about debt payoff. Being single doesn’t mean you don’t have any debts. You may still want to buy an auto or get a mortgage. You still need to repay your student loans or handle a personal loan for your home renovation project.
Whatever financial obligations you are having, remember to be consistent with your debt repayment. Don’t put off regular payments as they will lead to penalties and finance charges. Be smart with your credit card usage and never take out a loan you can’t afford to repay. This easy yet significant tip will help you allocate more funds toward your savings.
The Bottom Line
Whether you are single as a result of a recent divorce or breakup, or you are single by choice, you need to follow these basic rules and prepare for some financial challenges. Being a single person means you have more free time to enjoy your life, but also more obligations to handle on your own.
You may have the entire apartment to yourself, but you also have the entire utility bill. You don’t have anyone to split the rent payments as well so you need to follow these money saving tips for single people if you want to manage your finances just for yourself.