Financial Planning Tips for Singles by Olalekan Olorunkunle

This truth has come to stare us in the face whether we like it or not that, across the globe, we have increasing percentage of singles in all National Population Censors. Therefore, issues with singles are to be dealt with critically and finance issues form integral part of the pressure singles deal with. People often assume that financial planning is easier for singles than for married couples or people with families to support. It is true that there are generally fewer factors to consider when planning a financial future for an individual. This provides for more flexibility and less complication especially conflicts that arise when attempting to make plans with a spouse.

However, single people are also at a disadvantage because they only have themselves to depend on. Thus, singles need to manage their finances more carefully and plan ahead for unexpected expenses such as medical bills and loss of employment. Whether you are unmarried, divorced or widowed, planning for your financial future is essential.

Highlights for Financial Planning include Budgeting, Winning Against Indebtedness, Creating Emergency Fund, Investing, Cutting Your Cost of Dating and Cooking and Shopping:

Budgetting is typically the first step towards financial success and independence. A budget helps you to recognise in what areas you can afford to cut costs. A budget allows you to prioritise your finances so you have some money to put towards the things that you really want. You can still make room for some "fun money" in your budget if you plan carefully. A budget simply shows you how to live within your means. The sense of control and independence that create- and-stick-to-budget culture provides can be very liberating.

Indebtedness is common among younger singles due to exuberance. It is important to take the steps to begin to free yourself from its often-paralysing grasp. Figuring out exactly how much money you owe, the interest rates and whom you owe it to is essential to creating a plan for paying it back.

While paying off debt may seem like your most important financial priority, it is a good idea to create an emergency fund, before strategising on how to pay what you owe. Financial experts suggest setting aside enough money to finance three to six months' of living expenses in e.g. a high- yield money market. Without the safety net provided by a second income or health insurance provided by a spouse's employer, it becomes even more important to plan ahead.

Many singles, especially young ones, tend to think that health insurance is an unnecessary even frivolous expense. The reality is that anyone can become ill or have an accident, regardless of age or current health condition. When this happens, managing outrageous medical bills all on your own can quickly thrust you into a sea of debt. If you are the only source of income for your household and you lose your job, you are at an even higher risk of accumulating massive debt.

Another key to the success of the single person's financial plan is investing for the future. Even young singles need to start thinking about saving for retirement. Investing may seem impossible if you are struggling with debt and living from pay-check to pay-check. But the sooner you start saving, the less you will need to save overall. Try investing even a tiny portion of each pay-check into stocks, real estate, money market e.g. Treasury Bills, Commercial Papers, Bankers’ Acceptance, Fixed Deposits, Bill of Exchange, Repurchase Agreement, Mutual Funds, and other programmes that will allow your money to grow over time. Another divine treasure you need to invest in daily is your talent - develop it now.

Whether you have found or still searching for your soul mate, relationship costs can add up quickly. The good news is that dating does not have to break your bank. Going to the beach and watching the sunset will do no damage to your pocketbook and is more romantic. Keep your eyes open for free or inexpensive events, such as local concerts and plays. Look into other activities coordinated by your community centre. Not only will you save a bundle, but you also may find that you have more fun than you would on a typical dinner date and will get to know your friend more quickly and on a deeper level as you cut your cost of dating.

Many singles dread cooking and shopping; they opt to eat out a lot instead. Not only can this be expensive, but it can also be hazardous to your health and weight management. Buy foods that have a long shelf life and are quick and easy to prepare. This gives you a win-win result.

Conclusion

As you can see, singles have unique financial needs. However, with a little planning and prioritising, single persons can create a successful financial future for themselves. The key is starting early, getting organised and being serious about managing your financial future. Being single now is a bird in hand, enjoy it; you don’t have to endure it.