How to Prep for a Financial Emergency

Managing your finances is hard enough, but as a single parent, your
need for financial wellness skyrockets. It’s overwhelming to expect you’ll
be able to afford every expense that comes your way.

As a single mother, your income is crucial to your and your children’s lives.
Starting to save for a financial emergency seems like an impossible task.
Taking the time to create a strong foundation as the sole breadwinner
will set you up for success, no matter the circumstance.

Make Saving a Priority

When preparing for the worst, saving as much as you can and as fast as
you can helps to set you up for success. But where do you start? How do
you know you’re saving enough?

It’s not always the easiest thing to do, but creating a savings account designed to be there in case of an emergency can be very helpful in your times of need.

Starting with small steps in your savings journey will help you create
confidence in the process itself. You can request a portion of your
paycheck to be directly deposited into this special savings account each
time you get paid. This is a much more streamlined option that’ll give you
peace of mind that you are saving every month without having to make
the transfers or withdrawals yourself.

It’s important to take advantage of opportunities to save larger amounts when they present
themselves. Getting your tax return back in the spring and immediately putting it away for those rainy-day emergencies gives you an additional reasonable option to save.

If you’re already a super savvy saver, that’s wonderful! Try looking into
the variety of savings accounts you could implement to determine which
is best for you. High-yield savings accounts are a great resource to get a
high return on the interest you’re accruing, but only if you have a large
sum in the account. Different banks and credit unions offer varying rates
on their general savings accounts. Doing some research on what
institution is the right choice for you and your money will ensure you get
the most bang for your buck.

Consider Insurance for the Whole Family

Medical emergencies are one of the top offenders of creating financial
chaos. While having health insurance for yourself and your children is
always top of mind, it’s critical to realize you’re not the only one in your
household that could have a health problem.

Unfortunately, your pets can rack up large bills at the vet, not only for routine appointments but
for health-related emergencies like surgeries or other treatments.
You might be wondering, “is pet insurance a thing? Is it even worth it?”
Looking into pet insurance when your furry friend enters your home can
help save you massive amounts of money in the future.

As pets get older, their ailments get more expensive. If your pet has preexisting
conditions that disqualify them from receiving health insurance, there are
other avenues you can go down to help manage the costs over time.

Protecting Your Home

There are also other types of insurance you and your family could
consider to avoid running into financial overload. If you’re renting your
home, renters insurance is key. Some may tell you it’s not necessary,
but it’s better to be safe than sorry. Renters insurance provides you and
your kids with a safeguard from different types of situations. From a burglary to a house fire, and everything in between, it protects you from struggling to clean up the mess with your own bank account.

Naturally, if you own your house, home insurance is a necessity. Without the
buffer of a landlord to call to fix anything or take care of general repairs
and sprucing, you’re now in charge.

It’s important to note that while you have insurance for any and all of
these things, the policies you have aren’t set in stone. If you feel like
you’re spending more than you can afford, shopping for different
insurance companies and checking out their rates can help you make
your monthly payments manageable.

Don’t Be Afraid to Ask for Help in a Financial Crises

As single mothers, we try to be a type of Wonder Woman that can do it
all, but there are times we need to ask for help. Whether you’re trying to
co-parent amicably or you’re on your own, it’s important to have a
support system to help you in times of need.

Emergency situations come when we least expect them and having people to turn to
is imperative in creating your safety net. There may be times your friends or family will be willing to help you get through a slump.

If it makes you uncomfortable, asking you can make
the assistance feel as professional as possible. Agree on a
repayment schedule with your loved one to hold both of you accountable
for the “loan” and its terms. Make monthly payments, schedule a lump
sum repayment, or do whatever makes you feel comfortable accepting
the money.

When Family Help Isn’t Enough

If you’re still weary of leaning on the people in your life for monetary
support, you can consider the route of applying for an actual loan. This is
something you may wait to do until you absolutely need to. Borrowing
money from a lender comes with its own stipulations and qualifications you want to be sure you meet.

Your credit score and credit health impact your ability to borrow funds, so being timely on your payments and diversifying the types of loans you have will help your chances of
approval when and if that time comes.

There are times you can blend the two options together. If your credit
health isn’t in the right spot, you can ask a friend or family member to
cosign the loan with you to help your chances of approval. In that
scenario, you’re still responsible for making the payments on time
throughout the life of your loan.

Financial surprises come at the most inconvenient times – it’s sad but
true. It’s important to prepare for the worst, even when you’re at your
best. Being that support system for your family means being ready for all
that life throws at you. You can do this.