Financial Planning for awesome single moms

 

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I just want to honor all single moms out there who never grew tired of taking care of their kids while managing their finances. I hope this will give you clarity. Not all single moms are in a similar situation but these are my recommended items in your personal finance kit.  This is a multidisciplinary approach that includes spiritual, mental, emotional and social aspects as we explore the world of financial planning. It will take a lot of your time to master everything but the process is worth it.

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Get closer to God You may either have sufficient funds or not but without peace inside you won’t last this journey. Tough battles are ahead of you but being with God will keep your sanity within. Many single moms are distress with too much stuff in their minds. Without faith to the One who holds the future you may end up in chronic depression that may lead into suicidal thoughts. According to circleofmoms.comthe most common problems of single moms are no sounding boards when making decisions, taking care of the kids without someone to consult with during the middle of the night. You are not on your own. God cares for you His daughters no matter what happens specially with your life .

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Decide what you really want in life  Remember that you are still alive and not dead, dream more for yourself. Your self- concept should not focus on your past rather focus on what you can achieve. You need to get back up because you were born to be a champion.  You might be in a tight budget right now but again once you try to focus how to look for the opportunity things will turn out differently, finances will surely be positive. Lack of money doesn’t mean scarcity of favorable circumstances. nothing beats you when you Decide NOT to  glorify the past.

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Talk to a legal expert  In the family code of the Philippines it says that whether you got a legitimate or an illegitimate child, the father should be responsible in supporting your kids financially. This is not voluntary but a responsibility of the father. Never be afraid to ask for financial support because your child deserves it. Dismiss the issue with the father and claim the rights of your beloved child. Withholding the father from supporting won’t make the situation better. Single moms are  often smart, hardworking and a champ! Do not let those guys who messed up with you,continue living the way they want to. Let them be involved. Talk to the public attorney’s office Philippines. They can help you answers with your questions.

Support is defined under the Family Code of the Philippines (1988) as follows:
Art. 194. Support comprises everything indispensable for sustenance, dwelling, clothing, medical attendance, education and transportation in keeping with the financial capacity of the family.

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Master the art of budgeting Doing this means understanding more about your priorities in life. As a single mom you will always juggle a lot of things. You will always be in lack when you don’t organize your money. The best friend of chaotic life is  a troubled plan.  I suggest you to have fun with a personalize excel file or an app that will remind you the allocation that you got for this week. You can experiment and analyze your behavior towards it. It’s like looking in a mirror.  As a Financial Planner I used an excel file to keep me on track. I visit it everyday for 2-3 mins and this keeps on reminding me about how I manage my funds well. Again it is a matter of preference, whatever fits you and make you progress, go for it.

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Create an emergency fund  There will be an earthquake that may shake  your life  but most of the time you don’t know when this will happen. That’s the principle behind the emergency fund. This will prevent  you to be in debt and beg from other people when you encounter this kind of emergency. Preparation is the key. If you are currently saving some funds make sure to name that account. Study the behavior of   billionaires, entrepreneurs because they know the value of this. When you get your paycheck, transfer automatically at least 5-10% of it. Build it on time and you will have an umbrella when it pour it all out.

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Get an insurance  When you die accidentally without any safety net your immediate family especially the young ones will suffer. Think about your kids future. If you will use the cost benefit analysis, You will only pay for a certain amount so that you can be covered with a bigger amount that can help your love ones survive. Nothing can replace you, especially the joy that you bring while you are still alive but you will take that away when you suddenly demise. Insurance will give them a way to start a new life knowing that you cared for them. This will help them back  up. For more info about the legitimate insurance companies check the insurance commission.

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Long term financial goals   In order for you to win long term you need to act and think long term.  Your kids are looking up to you, they are inspired to see you waking up every single morning working hard. Look at yourself 10-20 years from now. What are the aspirations that you want to attain. Heller Keller said “The only thing worse than being blind is having sight but no vision” Don’t look too much with the  side mirror. Look at the windshield. Your life is much more bigger.

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Credit card debt  Never ever use your credit card as your emergency fund.  If you are already in debt don’t lose hope. There are a lot of ways how to take care of those things. Talk to someone who is financially inclined. Don’t talk to your family members or friends who are also broke. They will not give you the best advice to win.  Just find a winner who have gone the same issue and found a way. Keep asking. Look for forums. Use the internet and the mighty power of google. There a re a lot books who talks about debt.  U2 said  a famous line Sometimes you can’t make it on your own.

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Invest in the education of your kids  After you carefully manage to put up emergency funds, eradicate debt and built your savings. Yes, you can still invest long term. Beware of scams  and always check the legitimacy of the company.  As early as your child was born whenever you have extra resources put it  to a mutual fund specifically to an  equity fund. Historically our funds in the Philippines are doing great. Even at the peak of financial crisis we were able to recover.   

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Find support from a community. Life will knock you down but remember that you have your own tribe.  You are designed to be with a community who will support, love, hug , cry out with you when you are on your lowest point. When you are highly emotional you will commit  more mistakes including on handling on your finances.  When you are confuse with your situation there are mentors, friends, encouragers, winners  who can help you. This will prevent you from losing more money and manage the funds while you are enjoying the journey of single motherhood.  After all the struggles  with your finances  there’s a light at the end of the tunnel..

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Be an entrepreneur or ready to change your career  Nothing is certain specially in your career. You try to embrace the fact that you have a higher calling. Being a single mom should not confine you within the box of your current situation. You got dreams that you want to achieve like baking, making lovely dresses, selling your coaching services. Whatever makes you productive please pursuit it.

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Self evaluation  You got the most awesome job in the world and like any other job there's always this performance evaluation.  Rest days should be for self reflection. This is mandatory and not optional. Evaluating yourself will give you opportunity to drive your finances to the next level and prevent common mistakes.

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Create a will or trust   This is related to estate planning. Never underestimate this tools. It is really important for you to have a knowledge with this to make things easier for you once uncertainty take place.  According to Elder Law Answers,  A will is a document that directs who will receive your property at your death and it appoints a legal representative to carry out your wishes. A will covers any property that is only in your name when you die and it allows you to name a guardian for children and to specify funeral arrangements.  

A trust can be used to begin distributing property before death, at death or afterwards. It is a legal arrangement through which one person (or an institution, such as a bank or law firm), called a "trustee," holds legal title to property for another person, called a "beneficiary." A trust usually has two types of beneficiaries -- one set that receives income from the trust during their lives and another set that receives whatever is left over after the first set of beneficiaries dies. a trust can be used to plan for disability or to provide savings on taxes.

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Teach your kids about money   Kids look up to you everyday. Being a role model will create an impact to them. Once you neglect to explain to your child the way you spend they will immediately assume something. When gray area struck confusion sets in. Remind them about your inner values and priorities in life so they can put the money in a proper place..

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Romans 5:3-5 ESV

More than that, we rejoice in our sufferings, knowing that suffering produces endurance, and endurance produces character, and character produces hope, and hope does not put us to shame, because God's love has been poured into our hearts through the Holy Spirit who has been given to us

 

David Isaiah Angway is a Financial Evangelist