10 Smart Ways To Stretch Your Budget As A Single Mom!

Single moms need all the help they can get! So today I have a guest post from Andy Masaki, financial writer and founder of the website Pennyless dad.

“Being a single parent is not a life full of struggles. But a journey for the strong.” ~ Meg Lowrey

To remain strong, you need to take care of your finances well! And a budget is an integral part of a financially stable life.

Well, I hope that you are following your budget strictly! You might have already cut down your unnecessary expenses, and you’ve created a proper spending plan and all! 

But you know what?

You can always do something extra to make your budget even better! Yes, you heard it right! Being a single mom, it might seem cumbersome to you! But trust me, once you know how to do it, you can save more money!

So, here are some of the best possible ways to stretch your budget and save more bucks!

1. Create a 50/30/20 budget

Are you still following the traditional way of budgeting?

If yes, then you should try 50/30/20 budgeting now! It can help you to save more money by allocating funds for different types of expenses!

In this budgeting, you need to divide your take-home pay into three categories, like:

• 50% for your needs (rent or mortgage, grocery shopping, utility bills, etc.)
  
• 30% for your wants or luxurious expenses (shopping, going out for a movie or eating out with your child, etc.)
  
• 20% for your savings (emergency fund, stashing money in your retirement accounts, investing in a 529 plan, etc.)
  

Thereby, it can help you to create a balance among your essential expenses, financial priorities, and luxury preferences. Plus, you also become aware of how much dollars you can spend on a particular category!

So, precisely following this budget can help you to save more money and manage finances in a better way!

2. Do a single mom No-Spend challenge

In a no-spend challenge, you choose a time period (like days or weeks or months) not to spend any dollars. 

However, you have to make sure that you are spending money on necessities like food, utility bills, etc.

So, your goal should be to gain control in your spending and limit impulsive extras! 

Thereby, you can save more of your money and stash it for your financial goals!

3. Stay away from credit cards

No doubt, purchasing with credit cards can help you to earn cash back or reward points. But in the long run, the incessantly high-interest rate of credit cards can burn a hole in your pocket!

Yes, you heard it right!

Actually, what happens is that you can make purchases of any amount within your credit limit (which is usually higher than your paycheck). In other words, you are not aware of your actual financial limitations!

And eventually, you can go out of your budget! 

Then you’ll have a rude awakening when you come out of the smoke and mirrors while going through your credit card statement!

Not only that but if you can’t pay off your entire outstanding balance by the due date, you will have to shell out even more money in interest! 

And why should you waste your money on interest payments for debt?

Plus, having debt means that a substantial amount from your paycheck is deducted every month! After all, interest is expensive!

So, find some ways to get out of debt and live a debt-free life ahead! Just imagine if you could actually save all the money that you would have spent on paying off your debts!

4. Cut down the daycare costs

A CNN Business report reveals that in our country, child care costs are more than that of colleges! That’s why it’s one of the biggest expenses parents need to worry about! 

And as a single mom, you might be a bit more worried than a two-parent household!

So, if the childcare costs are equivalent to your income, you can decide to stay home! Look for some ways to earn money online, like starting a blog, freelancing, etc.

If you find the right way to be your own boss, you can earn money while staying home with your kids! Plus, you can save money on childcare expenses too!

5. Take advantage of single mom tax breaks

Being a single mom, you can use tax credits and deductions to your advantage. And eventually, you can reduce your taxable income and slash the amount of tax you pay.

Here are some ways to reduce your taxable income:

• Filing as a head of household can help you to get a lower tax rate. For that, you need to be unmarried on the last day of the tax year to qualify for the head of the household status. In 2020, the standard deduction of the head of the household is $18,650.
  
• Opting for a child tax credit can help you to save money on your tax payments as it’s subtracted from the total amount of taxes you owe. You can get a child tax credit worth $2,000. But your child should qualify for the certain requirements set by the IRS (Internal Revenue Services).
  

• You can claim Child and Dependent Care Credit if you pay for childcare or your child is under the age of 13. You can get a credit up to 35% of the expenses you have paid to the care provider. Check here whether or not you are eligible for filing Child and Dependent Care credit.

6. Prepare baby foods at home

Usually, store-bought baby foods are heated to a high temperature while processing. This results in the reduction of some of the nutrients.

But if you can make baby foods at home, it’s free of any preservatives. And it’s always fresh!

Secondly, jarred baby foods are usually expensive! So, if you prepare baby food at home, it can be more nutritious and can help you in saving money too!

7. Go out for lunch instead of dinner

Well, when you plan to eat out with your child, try to go for lunch! Many restaurants have different menus for lunch and dinner. And if you watch closely, lunch prices are slightly lower than the dinner menu.

So, before you head towards a restaurant, check out their online menu to know whether or not it fits your budget!

Doing these things as a single mom can help you save money and spend a nice time with your child!

8. Learn to say “NO” to your child

Nobody wants to be a bad mommy to their children. But you need to learn to say “NO” if you want your child to become financially aware. And of course, you can save money by not spending on unnecessary things.

So, the next time you go shopping with your child, don’t give in to whatever he/she wants! Ask your child, “Do we really need this?”.

Initially, your child might say, “Yes!!”. 

But help your child understand why that product is not a necessary thing! And most importantly, please be polite and keep calm while explaining to him/her.

However, if you turn down the kid’s request every time, he/she might feel neglected. So, it’s okay to give your child a small reward for good behavior at the store from time to time.

This way, you can save money by not indulging in splurges. And at the same time, you are imparting financial awareness to your child.

9. Try to buy in bulk

Buying in bulk can save your money to a certain extent if you only focus on buying essential things.

But you have to keep in mind that buying in bulk is not always a smart thought. Sometimes it may result in wasting money if you buy unnecessary items.

So, you can visit big bulk stores like Costco, Walmart, etc. and follow these tips to save money on groceries while buying, like:

• Prepare a list of the things you need to buy.
• Check the prices by comparing apples to apples.
• Buy store-brand products. The quality is sometimes better than the higher priced name brands.

10. Shop at the local farmers market

If you go shopping in your local farmers’ market, you can have fresh food. You can buy seasonal products that are usually cheap and fresh. You can also have a look at these money-saving tips from the U.S. Department of Agriculture.

Here are some tips that single moms can follow while visiting the local farmers market:

• Many vendors sell the same in-season products but at different prices! So, before buying, take a stroll in the market and compare the prices. It will help you to get the best deal and save money!
  
• Go 30 minutes before the closing time of the market. Usually, vendors give a discount during that time. So, you can get a better deal from the farmer. And in return, you can buy a sizable quantity at a reasonable price! 

• Even if it’s too hot or too cold or it’s raining, the farmers market remains open! But during those days, the footfall of the customers is usually low! So, the vendors offer a good discount to the visiting customers to compensate for the possible losses.
  

The cool thing is, you can grab this opportunity to save a substantial amount of money on your grocery shopping budget.

So, what are you thinking about? Are the above tips hard to follow?

I hope they aren’t! Because following these tips asap will help you stretch your budget to save more money. 

And eventually, as a single mom, it will help you to manage your finances in a better way!

Andy is a blogger and financial writer associated with the Oak View Law Group. He is a debt expert and a member of several online forums where he shares his advice as well as tips to lead a financially independent life. You can find Andy at Pennylessdad.com, Pinterest, and Twitter.