How to support your family on a single income
Creating a family budget on a single income can be a challenge, but these simple steps will maximize your money.
6 min read
Being a parent or guardian can be very rewarding, but it can also be challenging—especially for families with one income. But a limited budget doesn’t mean you have to limit your life. Taking control of your spending may seem daunting, but we’ve got some simple steps to help you tackle your finances. Read below to see how to support your family on one salary.A budget helps you set spending limits and feel empowered by your money, especially when finances are tight. As a single income family, creating a budget can help you with monthly planning, hitting saving goals, or repaying debts. Getting in the habit of reviewing your budget will help you see how you're spending money and then plan on how to make it go further or where you may need to cut back.Before you look into how to budget your current income, it’s worth checking if you can increase your earnings. Follow these quick tips to see whether you can grow your net income: 1. Make a list of all monthly costs Making a list of all your monthly costs doesn’t need to be hard, so get started by sitting down and reviewing your spending each month. You can either track your debit and credit card purchases online or review your receipts. Think about a few main spending categories:3. See where you can streamlineAs a one income family, it may seem like there’s no room to save, but often a handful of small changes can make a big impact. Try our tips on how to reduce your costs quickly and easily:
Why you should budget on a single income
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Open a savings accountTips to get the most out of your single income
- Review benefits that may be available to you—there are many different benefits available these days, so make sure you’re claiming the ones you and your family may be entitled to. This could include grants toward household bills, disability allowances, or help with childcare fees. Check out your local government resources to see what support may be available where you live.
- Consider early debt repayments—review how much your debts, such as credit cards or student loans, are costing you. Paying off debts sooner will not only improve your credit rating, but will free up money that was going toward interest payments.
- Make the most of your savings—any savings is a great start and growing your funds will set you up for a better future. Look for comparison websites that will help you find saving accounts with the best interest rates and you could even consider investment options such as purchasing funds or stocks.
3 steps to creating your one income budget
- Essential costs can include rent payments, childcare, healthcare, grocery trips, and car expenses. This could also include utility bills, internet tariffs, insurance policies, and taxes.
- Entertainment spending you and the kids are used to, such as trips to the movies or eating out.
- One-off costs that have occurred over the past 12 months. These are often unexpected costs, so you’ll want to factor in some cushion, such as an emergency fund, in your budget.
- 50% of your salary should be reserved for everyday needs
- 30% for additional treats and entertainment
- 20% goes into savings
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Use N26 Spaces sub-accounts to easily organize your money and save up for your goals.
Discover sub-accounts- Services and Utilities—check your current payments to see if you’ve automatically switched over to a higher rate and, if so, use comparison sites to check for lower rates. Find out when your other contracts are ending so you can set reminders to shop around for a good deal when the time comes.
- Transportation—if you commute to work by public transport, check to see if it’s cheaper to buy a monthly pass. And if it’s not too far, you could consider walking or biking to save money and stay fit! Using a car comes with it’s own set of costs, so shop around for better insurance deals. You could also consider upgrading your car to a newer, more fuel-efficient model, if your budget permits.
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