If you are single and want to be smart with your money, you face different challenges and advantages than married people.
Last week I wrote a post about two things you should do before starting your debt free journey. Because I am married and this blog is called “Our Debt Free Family,” I focus my writing primarily toward married couples and young families.
But I have received some requests to write to the single person’s perspective.
It is important to me to show you that I listen to my readers and appreciate your comments and suggestions. So here is my advice for the single people who want to make smart money choices, get out of debt, and work toward true financial freedom.
1. Take ownership of your current situation.
If you have never been married, then your present financial situation is a result of choices that you alone have made.
If you have calculated your Net Worth and are pleased with the result, then be proud of where you stand and continue to make wise choices with your money to reach your financial goals.
But if you are in the red or your current financial state could use some improvement, then acknowledge the choices that you have made to get you here. Realize that nobody is perfect, and we all have made unwise decisions. At this point, accept the truth as it is, and resolve to make smarter choices going forward.
The good news is that while you alone are the reason your situation is what it is, you alone have the power to improve it.
You don’t need to confer with anyone before deciding to make a change. You can decide today — in this moment — to take control of your money and get out of debt. You get to decide what your financial goals and priorities are, and you will be able to change direction quicker than a married couple who would need to discuss and agree on their new path.
2. Find an accountability partner.
I touched on this briefly in the post about two things you should do before starting your debt free journey so I will expound here.
While you have the freedom to make life-changing decisions without needing to consult with anyone, you may need a little help down the road with sticking to your guns. This is normal.
Find someone you trust to hold you accountable to your goals. This person should have your best interests in mind, and it might be beneficial if he or she has similar goals. That way you can encourage each other to make progress on your goals and celebrate together when you reach specific milestones on your journey.
Your accountability partner should be willing to call you out when you are getting off track and remind you of your reasons for setting your goals in the first place. He or she will do so in a positive and supportive manner and cheer for you and your accomplishments.
3. Plan for the future.
While you are single right now, that may not always be the case. You may currently be in a relationship and can easily picture yourself getting married in the not-so-distant future. Or perhaps you have no desire to ever get married.
Either way, your situation (whether it be where you work, where you live, or what brings you joy) will likely change as time goes on, so you should set yourself up for a healthy financial future now. This will give you greater flexibility when opportunities come your way.
Some day you may want to plan a wedding, adopt a child, or go on an exotic vacation with friends. You don’t want to put yourself in a situation where you need to charge the added expenses on a credit card and pay an exorbitant amount in interest.
Instead, train yourself now to make wise financial choices. Set goals for yourself such as paying off your debt, building an emergency fund, saving for large purchases (i.e. a car, vacation, or down-payment on a house), and investing for retirement. Start living on a budget and you will be able to reach these goals more quickly.
Make a plan to set yourself up for a stress-free financial future without creditors and limited funds standing in the way of the freedom to live your life the way you want.
What About You?
Participate in the conversation. What would you add to the list? What is your best advice for single people who want to take control of their financial situation? Share in the comments below.
Great list – #3 certainly resonates. As I have entered my late-20s certain milestones no longer seem hypothetical or ‘far-off’. I’m certainly kicking myself for taking the vacation over prioritizing retirement.
I’ve also realized that shopping {echoing the Target sentiment + and the grocery store} have resulted in some very poor spending decisions. I would often leave the store scratching my head, wondering how a tube of toothpaste and a few other items cost $100. I now make lists of what I need and estimate the price on everything. This gives me a better idea of what the total should be and keeps me accountable.
That’s a great strategy, Meredith! It is so easy to get to Target or the grocery store and find a few more items that you think you need. Remembering your plan and holding yourself accountable is key to reaching your goals. 🙂
Great list. #3 resonates with when I was single. I just didn’t have a plan. Nothing more than “save money”. Ha.
One idea to add would be to not use money as a coping mechanism. I totally did that when I moved to a new city and was single. After work, I would go to Target and just wander. The $5.00 DVD rack and I were great friends. ::sigh:: I’ve heard a lot of single friends say something similar.
Oh, Target can be dangerous! There are so many things that are relatively inexpensive. It’s easy to indulge in items that I don’t really need or want. Having a plan definitely helps. 🙂
I was single for quite a long time and I wish I would have heeded this advice before I got married. I’m sure it would have made my future easier, and the beginning of our marriage go more smoothly. Keep up sharing these good words on money. You are affecting people’s lives for the better.
Thank you so much, Tracy! I appreciate your kind words. 🙂
I am single, and feel like it is the primary reason why I am financially secure. I have worked as hard as married people but have had the capacity to save and invest. Meanwhile, people with spouses and children have all sorts of expenses I do not. Diapers through college. I’ve heard it’s a million dollar investment per child to really do it right, although I’m sure there are some who would debate that figure.
Not having a family and the associated expenses allowed me to invest in something I love, quilts, and after I retired early at age 43, I embarked on a second career, so to speak, sharing antique and vintage quilts with the world. The quilts are my children, but the financial investment was actually far less than a four-year Ivy League education for one.
I can see your point that it can be easier to build wealth without a spouse and children. Some people might think it would be easier with two incomes, but I think it’s a matter of acknowledging your situation and making smart choices. You have obviously done that by being able to retire early and pursuing your passions! Congratulations!
Great tips as always, Monica. You are so right to point out that every one needs to take on accountability and that single people have the power to make forward thinking decisions as well as planning for the future their own.
Thank you, Beate! My goal was to empower single people to take control of their financial situation. I am glad that came across. 🙂
I love how you emphasize that an accountability partner is totally normal to give any saver or planner some help, but it’s not just about telling someone you are doing it- they need to be in a role where they can call you out and keep you in line with what you said you would try to do!
Exactly! It won’t work if they aren’t willing to step up and tell you when you’re getting off track. 🙂 Thanks for stopping by!