Even though women are participating in the economy like never before, we still see many single income families around us. Some people have little children and prefer to have one spouse stay at home to look after the little ones. Some families still feel it is the husband’s job to bring home the money and the wife’s job to cook and clean. Some families are unfortunate in the sense that the kids have only one parent living with them. Some women take time off from their careers to focus on their children and a decade later they realize they are no longer employable!
Whatever your circumstances, if you are a single income family – life is not so easy. With rising costs and abundance of attractive goods in markets, it is hard to sustain a family on a single income. Having said that, it is certainly not impossible to save and invest money even with a single income!
Tips for Single Income Families to Save and Invest Money
– Budget! This is the single most important tip to save. Make a budget at the beginning of every month and try to stick to it.
– Never go shopping without a shopping list! When you do that, you always buy more than what you need.
– Try to avoid using plastic money. When you pay in cash, the feeling of having spent money is much more versus paying by card.
– Restrict the number of times you eat out. Eating at home is healthier for everyone and also cheaper.
– Avoid falling into the lifestyle inflation trap. When people get their annual increment, they adjust their expenses accordingly, thereby never saving any money.
– At-home spouse can try to make a little cash on the side by working online or part time on weekends.
– Invest in a Systematic Investment Plan of any mutual fund. This will make sure you save and invest every month, no matter what!
– It is most important to teach your kids the value of money. Explain to them that resources are limited for every family, so expenses need to be prioritized. It is great to give them some pocket money and let them make their own buying decisions – it is also much cheaper for the parents!