Browse Category: Money Mistakes

A Single Parent’s Guide to Money Management (Do’s and Dont’s)

Being a single parent takes incredible skill, dedication, and sometimes, a leap of faith. While you’re managing everything from homework help to household, it’s easy for financial planning to slack off. Let’s talk about some common money mistakes that could be financial disasters and how to avoid them.

Single Parent's Guide to Money Management

1. Stop Trying to Buy Your Kid’s Happiness

Look, we’ve all been there – standing in Target while your kid begs for those expensive sneakers “because everyone has them.” 

I used to cave in all the time, maxing out my cards because I felt guilty about being a single parent. But here’s what I learned: my kids need my financial stability more than another toy. These days, we do movie nights and park adventures. Honestly? They’re happier with these moments than they ever were with expensive gifts.

2. Smart Childcare Doesn’t Have to Break the Bank

I nearly cried when I first saw daycare prices. Then I got smart about it. I found out my company had childcare benefits (nobody told me!), started sharing childcare duties with another single mom, and discovered some amazing state programs. I went from paying $1,200 monthly to about $400. Seriously, don’t just accept the first expensive option you see.

3. College Costs Gave Me Nightmares Until I Did This

I regularly see single parents pushing off saving for my kids’ college because bills are tight, this is a big mistake. When my eldest turned 12, I panicked. Now I put away just $50 a month in a 529 plan. It’s not huge, but it’s something. I also discovered tons of scholarships and grants I never knew existed. Start small, but start now – that’s what matters.

A little smart research for scholarship programs and grants will help you get relief from big stress and probably from student loans.

4. Don’t Skip Insurance

Skipping insurance to save money seemed smart until that $8,000 emergency room bill hit. One broken arm during soccer practice taught a painful lesson. 

Keeping health insurance, a basic life policy, and disability coverage is non-negotiable. Found decent coverage through the state marketplace for much less than expected. Trust me skipping a few streaming subscriptions to make it work will be worth it with the the peace of mind. After all, those kids need protection no matter what life throws our way.

5. Neglecting an Emergency Fund

I call it the “uh-oh” fund because life is happening. Started with just $20 per paycheck, and it’s saved my butt more times than I can count. Car repairs, surprise school fees, that time my washing machine died – having this cushion kept these surprises from becoming disasters. Aim for $1,000 to start then work toward having 3-6 months of expenses saved. Trust me, it’s a game-changer.

6. Your Future Matters Too (Retirement Planning)

Between soccer practice, meal prep, and homework help, who has time to think about retirement? I’ve seen people who have spent years putting everything into my kids’ needs and completely ignoring their retirement. This approach might seem selfless, but it could be a burden on your children later, I just want to ask what the plan is for not being a burden on your kids later. 

7. Get Financial Professional Help

This was the hardest lesson for me. I was too proud to apply for assistance or even fight for proper child support. What a mistake. Once I got over myself, I found so much help – tax credits I didn’t know about, food assistance when things were tight, even free school supplies. There’s no shame in using the support systems that exist.

Remember, none of us have this all figured out. I’m still learning, but these lessons have saved my family from so much financial stress. Take what works for you, and don’t be too hard on yourself. We’re all doing the best we can.

Stay Financially Aware Stary Financially Secure

Money Mistakes That Can Wreck Your Freelance Journey (And How to Dodge Them)

You know that feeling when you check your bank account after a great month of freelancing, and everything looks amazing? Yeah, I’ve been there. But here’s the thing – those numbers can be deceiving, especially if you’re making these all-too-common money mistakes. Trust me, I’ve learned some of these lessons the hard way, these mistakes are:

Financial Mistakes Every Freelancer Should Avoid

1. The “I’ll Budget Later” Syndrome

Let’s be real, budgeting isn’t sexy. But you know what’s even less sexy? Wondering if you can afford groceries during a slow month. Freelance income is like a roller coaster – some months you’re flying high, others… not so much.

Creating a Simple Budget (That You’ll Actually Stick To)

Want to know what changed the game for me? Thinking in percentages instead of fixed numbers. When you’re dealing with variable income, trying to stick to rigid budget categories is like trying to fit into your high school jeans – it’s just asking for disappointment.

Instead, try this: Look at your last six months of income (be honest with yourself here). Then break it down into percentages. Maybe 50% for essentials, 30% for taxes and savings, 20% for everything else, and the beauty of percentages is, they flex with your income.

2. Failing to Track Income and Expenses

Ever found yourself wondering where all your money went at the end of the month? It’s like being a detective in your financial mystery – except it’s not fun, and the culprit is usually your lack of tracking.

Why Tracking Changes Everything

Sadly, many people today have no track of how much they are making and how much they are spending. When I finally started keeping tabs on everything, I discovered I was spending way too much on “essential” business tools I barely used. 

How to Track Your Freelance Income and Expenses

  • Set up a free accounting app (like Wave or QuickBooks Self-Employed) and connect it to your bank account for automatic transaction sorting.
  • Open a separate business bank account and create basic expense categories like Client Software, Office Supplies, and Professional Development.
  • Schedule a 15-minute weekly review to categorize transactions, capture receipt photos, and mark tax-deductible items.
  • Perform a monthly analysis to check client payments, calculate real profit, and review recurring expenses.

3. Living on the Financial Edge

Here’s a scary thought: What happens if your biggest client ghosts you tomorrow? Or your laptop die in mid-project? Without an emergency fund, these aren’t just inconveniences – they’re potential disasters.

Building Your Safety Net

Starting an emergency fund feels about as exciting as watching paint dry, I know. But aim for 3-6 months of expenses. Start small – even $100 a month adds up. Think of it as buying yourself peace of mind.

4. Ignoring Retirement Planning

Let’s talk about retirement. Yeah, I understand you are too young to think of it. And when you’re hustling to make it as a freelancer, retirement planning feels about as relevant as learning to ride a horse. But here’s the deal – the future you are going to exist, and they’re either going to thank you or curse you.

The solution doesn’t have to be complicated. Open a Retirement Account and start keeping aside a little of your earnings. Even small contributions add up over time, thanks to our friend compound interest.

5. Not Setting Aside Money for Taxes

I remember my first year freelancing – I spent every penny that came in, thinking I was living the dream. Then April hit, and reality came knocking with a massive tax bill.

Why do we fall into this trap? It’s simple psychology. When we see money in our account, our brain says, “Hey, that’s all yours!” But spoiler alert: it’s not.

Here’s what actually works: The moment a client pays you, pretend 30% of that money doesn’t exist. Seriously. I’ve got a separate “tax” savings account, and that money is dead to me until tax time. Making quarterly payments? Even better. Your future self will thank you.

What Now?

Look, getting your freelance finances in order isn’t about becoming some money guru. It’s about giving yourself the freedom to focus on what you love – your work – without money stress hanging over your head.

Start somewhere. Anywhere. Open that separate savings account for taxes. Download a tracking app. Just take one step today. Remember, every freelancer you admire had to figure this stuff out too. We’re all just trying to avoid those financial face-plants while building something meaningful.