Are you single–either because you never married or have been divorced? You’re not alone. Singles are very close to becoming the majority here in the US. I read one recent study that reported that 28% of US households now have just one person and 49% of adults today are unmarried. This is the most singles in the history of the US. Here’s another interesting statistic–the percentage of Americans who live alone has actually doubled since 1960 so the trend is definitely towards more single households.
You may be wrong
If you are among the unmarried you may think it’s not important to worry about your finances. After all, the only person you need to worry about is yourself. But you’d be wrong. Being single means that only you are responsible for meeting your financial obligations. You’ll probably have to face financial trials alone and only you can make serious decisions regarding your future.
Set clear goals
You should start your financial planning by setting clear goals for the short, medium and long-term. Once you do this you will be able to create a plan that will help you achieve them. If you are single and young with no dependents, it’s one a great time to start saving and building financial security. If you invest and save regularly now, you’ll be in a much better position to meet your financial needs such as buying a home at ensuring a good retirement.
Create a budget
The problem for many young single people is that they often spend more than they earn–eating out too often, over using their cell phones or spending too many nights clubbing or hanging out with friends. This can cause the condition called “too much month left at the end of the money.”
The way to get beyond this is by tracking your spending and then making a budget–which is totally necessary for your financial well being. A budget can help you control any overspending, ensure that you’re living within your means and help you achieve your goals.
Have a rainy day fund
Keep firmly in mind the fact that if you run into a financial emergency, you’re the only person you can count on. And let’s face it, everyone runs into a financial emergency at one time or another. You don’t want to be in a position where you have to borrow money to survive that emergency. You should have a savings account of some kind with enough money to pay your living expenses for six months.. That way, you’ll be able to take care of any unanticipated car repairs or medical bills. You could even get fired, making that rainy day fund a great safety net.
How about health insurance?
Many people don’t feel they need health insurance that they’re “bulletproof.” But not buying health insurance can be a big mistake. You could suddenly become ill or be involved in an accident and end up with thousands of dollars in medical bills. If you can’t afford a comprehensive plan that has a low deductible, at least buy a policy that has a high deductible. That way you would pay any small medical bills yourself but would be protected against disastrously high bills that would make a big hole in your finances.
If you’ve run up a huge pile of bills
If you made the mistake of running up a huge amount of credit card debt, this, too, could put a big dent in your finances. In this case there are plenty of sites you can get a free quote as to how they could help. It costs nothing to get a quote and could be the smartest thing you do this year.