Managing cash flow can be one of the toughest jobs for single moms, even when receiving child support from an ex-spouse. Having a budget makes it easier to spend your money wisely while also planning for unexpected expenses.
Creating a budget involves a simple process of identifying how much money you have coming in every month and allocating it to appropriate expenses. Setting a realistic budget, one in which you don’t overspend on a regular basis, requires knowing where and when you spend your money. This requires keeping track of your expenses. Not just the big ones like rent, car payments, groceries, etc., but allof them.
Save all receipts and keep your checkbook and/or online banking account balanced and up to date at all times. It also helps to separate expenses into categories, such as household expenses, medical, clothing, entertainment and other areas. This lets you see which expenses take the biggest bite out of your cash flow, and helps identify frivolous or unnecessary expenditures.