Being a single mother is a challenge, not only emotionally but financially as well. But you would definitely want to give the best to your children. Since your family probably has a single main source of earning, you will surely need a financial plan in place. Essentially, the plan should cover long-term goals like college education and short term budget planning such as monthly expenses, too. So planning your budget as a single mother is important to ensure that you are able to make the ends meet comfortably for the family.
This can be more challenging than it sounds because the living costs are rising and emergency expenses tend to come up unexpectedly. Especially, when you have children to look after. A payday loan can be the perfect solution to sudden expenses that bounce up unexpectedly.
Online payday loans as an addition to current finances
First things first, you need to consider your current financial position even before you start planning your monthly budget as a single mom. Obviously, having a stable job will put you in a better position financially. Similarly, good credit history is beneficial too as it improves your chances of securing a loan if you need emergency cash. But even if you don’t really have a good credit score, there are options featuring no credit check, direct lenders, such as online payday loans for bad credit, and instant approval policies. So, you need not worry, even if you are running low on your credit score.
Here are some good pro hacks to secure your eligibility for a payday loan.
- Have a good look at your income
After you are sorted out with the current financial state, the next obvious step is to have a good look at your income. If you are working 9 to 5, calculating your weekly income will be easier as compared to irregular jobs. Add side earning to your regular income as well, if you have any. Finally, If you are widowed or receive any other benefits, add the alimony or child support that you receive from your spouse regularly. An accurate calculation of your monthly income is the starting point for preparing a budget that will get you through comfortably. And, also help you secure a loan in the hour of need.
- Prioritize the expenses for the family
Your regular expenses are the second key aspect that affects your eligibility for a loan. Remember that you need to calculate the sum of expenses of the family as a whole. Setting priorities is equally important as you would not want to give more significance to the frivolous ones like weekend trips rather than the essentials such as school fees. Once you are able to draw up a list of expenses on the basis of their priorities, you can manage the budget more effectively. It becomes easier to secure a loan if you have fixed expenses, according to leading financial institutes. At the same time, you should bear in mind the savings and insurance premiums that you need to set aside each month.
- Keep track of your accounts
While the calculation of your monthly income and expenses is important to decide how much you can borrow, keeping track of your accounts is equally important. This will help you make sure that you are actually managing your budget the way you have planned it. Not being sure about where you are spending can easily topple your monthly budget and put you in a big problem. Check your bank accounts regularly to keep track of other mortgages, credit card expenses, and loans as well. Also, be aware of the upcoming bills and expenses, whether regular or one-time so that you can have a plan for paying them. Using a budget app is also a smart way to avoid overspending.
- Be regular with your taxes
Tax planning is another significant aspect of financial planning. Just because you are a single mother does not give you an excuse to neglect your tax filing and payments. The last thing that you would want to do is to get in trouble with the IRS. So if your income is taxable, be sure to file and pay up in time. Moreover, if you are regular with your taxes it becomes a lot easier to secure payday loans since the lender focuses more on your credibility than your credit score. In other words, your lender considers your ability to repay the loan amount rather than what your credit score shows. And certainly, consistent tax record assures that you have a source of income, be it regular or irregular.
- Build an emergency fund
As a single mother, you may struggle with a sudden need for cash such as for a medical condition or illness of your child. If you already have a sizeable amount of money saved and don’t really wish to withdraw it then seeking payday loans is a good option. And of course, your savings can allow you to get a payday loan all the more easily. These savings can ascertain that the creditor trusts you as a credible borrower.
- Keep track of your current debts
It is pretty common for single mothers to borrow money from financial institutes such as the bank. But, these loans are usually greater in amount and are for longer terms. For example, a home loan which may be borrowed for up to twenty years, or a motor vehicle loan that may last a few years. The amount you already owe to other lenders can strongly affect the amount that you can secure out of a payday loan.
Proper budget planning can surely make your life as a single mother much easier. It puts your spending on the right track as you make conscious efforts to balance your expenses according to your income. At the same time, planning makes you think more about saving up for the future, which is all the more important when you are handling the finances single-handedly. With appropriate budget planning, you become the smartest parent ever!