November 8

Bouncing Back Financially: Budgeting Basics from a Single Mom

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I spent so many years working on my credit and saving. I had all these plans lined up and was ready to start looking for a house.

Then life happened.

I spent more time, energy, and resources investing in others and it drained me. I was drained emotionally, mentally, spiritually, and financially. It was stressful, devastating, and kind of embarrassing.

The more I heard other people’s stories the more I realized I’m not alone in the struggle. But I also know it’s possible to bounce back financially.

I’ve done it before and you can do it too.

I am working on rebuilding my financial life. I was nearing the down payment for my house.

Yea… I took a big financial hit. It pains me to think about it.

I went from getting myself out of financial problems and having good credit and it seems it’s been destroyed once again.

The beauty of it is that I was able to get through these challenging times and I have the knowledge and power to be smart financially. I can get out of this!

If you are struggling financially it is totally possible to change that. It takes dedication, but it is possible for you. I did It before and will do it again.

First, you have to uncover your financial truth. These simple questions will help you see where your money is really going.

Uncover Your Financial Truth

  • How much do you make, after taxes and other deductions?
  • What must you pay? Mortgage/Rent, Utilities, Groceries
  • What are you paying for? Memberships, entertainment…Things we want but don’t need
  • How much is in your savings? Are you covered in the event of…?
  • What is your net worth? Equation: Assets – Liabilities = Your Net Worth

If you want the basics you need to know what you bring home and what goes out. If more goes out than comes in, don’t fret you are like most of America.

End that cycle and start building your wealth. I like to think of it as my empire. I am constantly thinking of ways to increase my empire.

Play With Money

When I started budgeting what worked for me was touching the money. Not the real money since that was in the bank. but play money.

The visual was just what I needed and helped me understand the value of money. I bought some play money and used it to teach my daughter how to count and use money too.

When you have your entire paycheck in your hand and separate it into categories according to your bills. Put some towards the mortgage/rent, utilities, groceries, and so on.

Watching how and where money really goes makes a huge difference.

I challenge you to do it for 1 month. When you get paid or when you take time to budget using this activity. Take some play money and pay your bills with it.

Write down what you find. Did you run out? Did you have some left over? Did the process help or not?

How Do You See Money

Most of us see money as numbers on a screen and plastic cards that we swipe.

With e-payments, online banking, and automatic drafts we aren’t really in control of our money, but it’s so convenient.

I don’t usually take cash out the bank unless I need it. I’m considering going cash only, versus keeping everything in the bank or always swiping a card. I see money as a necessary tool. It’s important to know what money means to you.

Know Your Priorities

Starting over has me overwhelmed, but again, I know that I can and will bounce back.

Everything that I focus on this month is to better my life and future.

Saving coins, investing in what matters, and preparing for my role as a homeowner are high on my priority list.

What are your priorities and goals when it comes to money?


Tags

Budgeting, Finances, Healing Single Mothers, Money, priorities


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