There is a lot of advice for saving money and creating a budget as a family but singles too have unique concerns when it comes to managing their personal finances. Some individuals are life-long singles while others may suddenly find themselves single due to death or divorce. Regardless of your status in life, a single personal’s financial planning is just as important as that of a family.

Here are some tips for helping single individuals manage their money effectively:

Budget Is Needed
Even if you are living on your own and depending only on yourself, it is still crucial to have a set budget. You should always know where you money is going and how much money you are bringing in. You will still have saving goals to meet and financial obligations to pay so creating a budget is still an essential part of good financial planning.

Emergency Account
As part of your budget, you should be prepared in the event an emergency should arise that requires upfront cash. This is especially important for a person relying on one income. An emergency situation may be the loss of a job, a health problem, or an accident that may hurt a family with two incomes but destroy the financials of a single person. A section of your budget should be devoted to your savings goals so don’t forget to include an emergency fund in your planning. Ideally, 3-6 months of your typical income is a goal to strive toward. In the event a crisis does occur, you will feel more secure in knowing you have a few months worth of living expenses covered at any one time.

Retirement Planning
If you plan to remain single, your retirement fund will be solely your responsibility. In your retirement years, you will likely have some support from your Social Security benefits but it will likely not be enough to keep you throughout the rest of your life. Even the young and single individuals should spare no time contemplating retirement funding, since the earlier you plan, the more you can save. Set your retirement contributions to automated payments so it will make it easier to be consistent. What you don’t see in theory, you really won’t miss. Enroll in retirement funds through your employment if offered and if it isn’t an option, set yourself up with an IRA.

Keep Expenses Low and Savings High
While you are single, it is probably the easiest time to practice smart spending. After completing a budget, really look at where your expenses lie. Is there lots of unnecessary spending going on simply because there is no one to answer to but yourself? Regardless if you are currently single and hope to marry one day or if you plan to stay single forever, you need to control your wants from your needs and keep spending to a minimum so that your financial future will be assured with each dollar you save now.

Tags: being single, emergency funds, retirement plans, saving money

This entry was posted on Monday, August 17th, 2009 at 7:45 am and is filed under tips. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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