Top Money Management Tips For Single Income Households
Supporting a family on a single income can naturally be tough to manage. Your money doesn’t go as far as it used to, especially with the rising cost of living and additional impacts of inflation against the ever-constant presence of stagnant wage growth. Sometimes, your household may have to make tough decisions about what you can afford and what you have to go without.
But supporting a family comfortably on a single income isn’t an impossible feat, even if it is a bit tricky. With a little savvy spending and some strategic money management methods up your sleeve, you can ensure that your family lives comfortably on your single income.
Here are some top spending tips to help single income households reach all their saving and lifestyle goals.
Refinance Your Debts
If you’ve got some existing debts, such as a home loan, car loan, or credit card debts, you could be paying lots of interest on top of your regular repayments. Interest charges, particularly on credit cards, can range into hundreds over a year.
Thankfully, however, there are some pretty competitive car loan rates and other interest rate deals out there at the moment, so refinancing your personal loans or even taking advantage of balance transfer deals on credit cards, could help you rejig your debt so it works for you, not against you.
Consider getting a debt consolidation loan to refinance your debts. For instance, if you have three lines of credit, all at high rates, you could take out a single lower-rate loan and only have one repayment to manage, all at a lower rate. Refinancing is a viable strategy to reduce your spending on your consumer debt.
Switch Insurance & Utility Providers
For most single-income families, ongoing expenses like car insurance, home and contents insurance and utilities like power, gas and broadband internet can make up a large amount of your monthly budget. That’s why it pays to compare offers from different providers at least once a year. The renewal period for your insurance is a great time to compare new offers, as this is when your current provider will often increase the cost of your premium. You can get quotes online via competitors’ websites or use a comparison tool to find a great new offer on new policies.
The same applies to ongoing utility costs – internet, gas and power. You can often find a better deal, and similar to switching insurance providers, you can get quotes online or use free comparison tools to shop around for a better deal. You can save hundreds of dollars a year this way.
Savvy Grocery Shopping
You may really feel the rising cost of essentials when doing your weekly grocery run. However, with some savvy shopping strategies, you can make your pantry supplies stretch further each week.
You can save money by stocking up on cheap essentials like onions, potatoes, carrots, canned beans and diced tomatoes, and lentils and other pulses. These versatile ingredients can be combined to make hearty soups, stews, curries and other bulk meals. Do a big batch cook on the weekend, and you’ll have leftovers for the week ahead.
Furthermore, you can take advantage of special offers and discounts when shopping – keep an eye out for the bright tickets and the displays at the end of the aisle. Also, try buying in bulk wherever possible. You can buy nonperishables like canned goods in bulk without having to worry about food waste.
And finally, stick to what you need when at the shops. Filling your cart with lollies, treats, salty or sweet snacks, and other impulse buys can quickly increase your grocery bill. By avoiding temptation, you’ll save money and do your health and well-being a favour as well.
Cut Any Unnecessary Spending
One way single-income households can manage their money better is by cutting out any unnecessary spending. It’s amazing how quickly small purchases add up to hundreds a month. For instance, takeaway coffee, eating out for lunch or dinner, streaming services, retail subscriptions, online gaming purchases, and impulse and online shopping all add up quickly. It’s worth auditing your spending by looking through your bank or credit card statements and see where you can make some cuts.
For instance, cut out two and stick with one if you have three streaming services. Bring your coffee to work, and pack a lunch (remember our bulk cooking tip above). Avoid shopping online for unnecessary items, and don’t let your kids play video games that encourage microtransactions or paid content.
Pick Up A Side Hustle
Finally, you’d be surprised how many people have a side hustle – even in double-income households. If you’ve got some spare time and a valuable skill, you could easily transform any hobby or passion into extra income.
Some examples of side hustles include photography, writing, graphic design, web design, lawn mowing, rideshare driving, or cleaning on the weekends. A side hustle can bring in thousands over your employment income each year if you’re good at what you do and your services are in demand. So get your entrepreneurial hat on and see what secondary income streams you can set up for your family.
This helpful and informative article has shared the top money management tips for single-income households – including how to shop around for better deals on insurance and utilities, save money at the shops and cut frivolous expenses. Be sure to follow these tips and tricks to ensure your family can boost its saving power and live comfortably over the long term.