Can I Be Wealthy As A Single Mom

The number of single moms is staggering. Over 80 percent of single parents are women. With the responsibilities of raising their children alone and the gender pay gap, it’s harder for them to acquire wealth or become rich. 

Usually, single mothers don’t actually ask, “can I be wealthy as a single mom.” or, “can I be rich as a single mom”? They do dream about what they could have if they were rich.

 

For single moms to amass wealth, they need to have their finances under control. They must be debt-free, budget their money, and save for upcoming events. They need to invest in themselves and invest their money wisely. 

Can I Be Wealthy As A Single Mom

If you’re a single mom and what to be wealthy, You can so do it. 

What Is Wealthy 

The definition of wealthy, according to Merriam-Webster, is the abundance of valuable material possessions or resources.

There isn’t an exact number you can put on wealth, so it’s up to you to define. 

In most cases, to become wealthy, you need to save your money and live frugally. Very few people become wealthy due to inheritance or other windfalls. 

Being frugal and saving money alone won’t make you rich. You’ll need to invest your money wisely.  But being thrifty will give you the funds you need to invest. 

How Much Money Do You Need To Be Wealthy 

Being wealthy and being rich are the same thing. 

To be rich, you need to have a surplus of money. You need to be able to pay your bills, set money aside for rainy days (emergency funds), and plan for upcoming events (sinking funds), such as sending your children to college, buying a house, and many other things. And still have money left over. 

The list of things you could want is endless, but you need to know what you want and work to have them. 

Make Financial Goals 

Financial goals are where you want to be in five, ten, and twenty years.

Essentially financial goals are what you want in the future. So the list could look something like this.

• Vacation in the Philippians 
• Put kids thru college 
• Finish college 
• Good retirement plan
• Live on your own 
• Buy a house
• Retirement 

 

The list can be endless. But you need to know what you want. 

Assess Your Financial Situation 

It may not look pretty from here, but what do you have? What are your assets? What are your liabilities? 

Take a realistic look at your finances. Can you afford to live the way you do? Unfortunately, single moms learn they can’t afford what they once had after a breakup or the death of their spouse. 

I wrote an article How Do Single Moms Financially Survive? If you read it, I’m sure it will help you go determined how to afford more with less.

I don’t mean can you pay the bills? I mean, can you pay the bills and save money? To gain wealth, you must do more than pay the bills. You have to save and invest. 

If you can’t save money after you pay the bills, you need to change your lifestyle. Saving money is very important to your financial survival and building wealth. 

Reduce Your Expenses

There are many ways to reduce your expenses, including getting a roommate, moving, and getting rid of that car payment. In my article frugal living for single moms, I list twenty-one things you do to reduce your cost of living. 

After you’ve reduced your cost of living, you’ll have freed up money. Save this money in an emergency funds account. The experts recommend that an emergency account have six to twelve months of living expenses saved. 

Emergency funds are a logical place to begin because you don’t want unplanned/emergency events to derail your future plans. 

Earn More Money

There are many ways to earn more money. The easiest way is to ask for a raise. But before you do, make sure you are worthy of a raise. Explain to your boss how you are an asset to the company. There’s no harm in asking. 

Part-Time Jobs

Part-time jobs are another way to increase your income. The problem with part-time jobs is they restrict you. You already work a full-time job and what you really want is more time with your children and more me time.

If you work a part-time job, take steps to save the extra money you earn. Working a part-time job can be very expensive. You have more away-from-home needs, such as you still need to eat, transportation, childcare, and more. 

If this part-time job doesn’t leave you with more money, don’t take it. 

Side Gigs 

Side gigs usually pay better, allow you more freedom, and can be turned into a second career. 

Side gigs usually pay better because there’s no middleman. 

Depending on the side gig, you may have a range of time to start and complete the job. Potentially giving you more time for yourself or time with your children. 

Many side gigs allow you to work from home, like teaching English as a second language, booking keeping, babysitting, and more. 

For more ideas of easy ways to make money read my article,  How Can A Single Mom Make Easy Money? 

Get out of debt

Debt is a huge drain on your finances. Debt negatively impacts your financial life in many ways. 

The Interest You Pay

Sometimes it may not seem like much, but over time it adds up. The point is if you had not paid that interest, what could you have done with the money you paid out in interest? You could have saved it for your emergency account or a planned event like buying a car or returning to school.

Paying interest doesn’t add value to the item you purchased, nor does it add value to your life. Avoid paying interest. 

Your Cost Of Living Is Higher

Every financial obligation costs you more than if you didn’t have it. I know it’s a no dah. But it needs to be looked at. 

What could you do with the money if you didn’t have these obligations? I just spoke about the interest you paid, but what about the amount you borrowed? 

The amount you borrowed you could have saved before needing the item. Which would mean you wouldn’t be paying off this debt. If you had paid cash, there’s no negative impact on your cost of living because you withdraw the money you need from savings. 

To further reduce your cost of living, save up for things you need and want. 

We have all set money aside to buy something in the future. That’s a sinking fund. 

As you realize what you need or want in the future, save up for the item or event in a sinking fund. To learn more about sinking funds, read my article “how to use sinking funds.” 

I save for everything so I don’t damage my lifestyle or pay interest. You can save for everything tires for the car, upcoming car repairs, a new computer, clothes, and anything you can think of. You are not limited to the number of things you can save for. 

Invest In Your Future

It’s all about you. One of the best investments you can make is you. I’m talking about being better educated. College graduates earn more money than high school graduates by eighty-six percent. The gap in pay between college graduates and high school graduates continues to widen. 

There are scholarships and grants set up to help single moms. All you need to do is google it. 

Retirement 

Someday you’ll want to retire. You should be working toward being able to fund a retirement account. The sooner, the better. =

Focus On Financial Wellness

What is financial wellness exactly?

Financial wellness is achieving minimal financial stress. Having a strong financial foundation, no debt or little debt, an adequate emergency fund, and living below your means. And saving for upcoming things and events 

Actionable steps

• Make a budget
• Get out of debt
• Become more educated
• Save for upcoming events 
• Contribute to a retirement account

 

Conclusion 

Can I Be Wealthy As A Single Mom? Yes, you can. It will require you to change your lifestyle, save money, become more educated, and contribute to your retirement account.