Addwealth - Financial Planning, Funds Management, Insurance, Super, Investments Australia

I'm a Single Mum

Being a single Mum may be one of the toughest challenges of all. You're busy juggling finances, dealing with the kids, maybe battling to find a balance between work and home by yourself and you don't need any more disruptions in your life.

Protect your income

Financially, the most important thing for you may be income protection insurance. If you are the sole breadwinner, your family relies on you - so don't jeopardise it all!

There are a number of strategies that can be put in place to ensure that the cost of the insurance is streamlined wihtout a massive hit to you upfront, for example by having your super fund take out the insurance for you.

With all the other bills to pay, it may be tempting not to contribute to super, but even contributing a few dollars a week will give you greater security in the long run. And don't forget, by making small contributions you may qualify for the Government's co-contribution scheme, which will put further dollars into your nest egg.

In fact, as a single mum you may need every dollar you can get, so check what benefits you are entitled to from Centrelink (www.centrelink.gov.au) and the Tax office (www.ato.gov.au) to see what sort of assistance you may be eligible for.

Sort out your budget

Then, it's a case of sitting down and doing a monthly budget. This will show up your spending needs and habits, as well as help you track how the money flows in and out.

If you haven't been keeping records, start now. Gather all your bills, credit card statements, cheque book and receipts for your groceries or anyhting else you buy and keep a not of the little cash payments, such as coffee and chocolate.

Do this for a month or so then you will be ready to sit down and do a buget. It doesn't matter whether you use some budgetig software or just keep a notebook - the important things is that you are taking control and learning where the money goes.

The first step is to divide your spending into fixed costs and variable costs. Your fixed costs will include such things as mortgage payments, rent or loan payments. Your variable costs will include such things as clothing, food and entertainment.

Now you're in a position to decide if anything has to change. Pay your bills on time to avoide late fees, reward yourself for your savings efforts and stay motivated by setting goals.

It's also important to look after yourself, so set aside some time and money - a little pampering will soon revitalise you and help put thigns into perspective.

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