Can You Achieve Financial Freedom as a Single Mom?
The short and sweet of it is, yes, mama, you can achieve financial freedom. It can feel like an impossible task to save money, invest for the future, and provide for your family all at the same time. But if you can visualize it and believe in yourself, you can make it happen. You can adopt proven habits to set yourself up for a bright financial future, even if you’re living paycheck to paycheck. Here’s what you need to know.
What is Financial Freedom?
Financial freedom is the ability to live without worrying about money. It means covering your basic expenses, having savings for emergencies, and not worrying about debt. For many single moms, financial freedom can seem like an impossible dream. But it doesn’t have to be.
Defining financial freedom for yourself
Your vision for financial freedom must be a personal dream, and I encourage you to dream big. Your vision of financial freedom will evolve as you reach different stages of your journey, but you must have a destination in mind as you map out your steps to get there. Here are some typical financial freedom milestones you might encounter as you progress through your dream.
Breaking the paycheck-to-paycheck cycle
Living paycheck to paycheck means that your income covers your basic expenses every month with nothing left over. You might not even have enough to cover a surprise expense like a car repair or a trip to the ER. Without a second income to supplement your expenses, you may think it’s impossible to break this vicious cycle, but trust me—you can surpass this phase all by yourself.
Affording a better lifestyle
As you save more money and get a handle on your finances, you’ll see the possibility of living a better lifestyle. This might mean being able to afford nicer clothes or eating out more often. It could also mean taking vacations or upgrading your home. Whatever it looks like for you, enjoying a better lifestyle is a significant milestone to aim for on your journey to achieve financial freedom.
Creating a retirement plan
Finally, you’ll eventually want to retire comfortably without worrying about money. This is the ultimate goal for many single moms, and you can have ample retirement funds to fall back on you’re willing to plan ahead. Who knows, you might even be able to retire early!
Is Financial Freedom Possible For Single Moms?
The answer is a resounding YES! You can achieve financial freedom as a single mom. It might take time and effort, but it is possible to achieve there if you’re willing to make a financial plan and accept that change can be a powerful ally.
Know your motivation.
Why do you want to achieve financial freedom? What does it mean for you? Defining your motivation is the first crucial step to achieving any goal, and it’s vital when it comes to your relationship with money. Your motivation could be anything from wanting to retire early to being able to afford a better lifestyle for your family.
Set small goals.
Set realistic, achievable goals to help you move closer to your vision of financial freedom. These could be things like creating a budget, saving a certain amount of money each month, or investing in a retirement account.
Adopt healthy financial habits.
You can’t achieve financial freedom if you’re unwilling to change your relationship with money. Instead, adopt healthy financial habits. For example, track spending, pay off your credit card, and start an emergency fund.
How to Achieve Financial Freedom as a Single Mom
Sharpen your financial literacy skills.
One of the best ways to achieve financial freedom is to dive into the area of financial literacy. Learn how to monitor your spending habits, save, invest, and manage your money so you can make smart decisions with your finances.
One of my favorite resources is Clever Girl Finance. Here, women can access courses and resources to achieve financial freedom for free.
Another fabulous resource for women seeking a sense of community is Ellevest. You can access private wealth management, digital investing resources, and money coaching for as little as $1 per month.
Stick to a monthly budget.
Another key to achieving financial freedom is creating and sticking to a monthly budget. This will help you track your spending, save money, and progress towards your financial goals.
My favorite budgeting rule is the simplest one of all—the 50/30/20 approach. It’s the simplicity of it that makes it so easy to stick with:
- 50% of your income goes towards your essentials (think: rent, groceries, utilities).
- 30% goes towards your wants (like travel and dining out).
- And 20% is saved, invested, and used to pay off debt.
Explore multiple income streams.
One of the best ways to achieve financial freedom is to create multiple income streams. This could mean having a side hustle, investing in real estate, or even starting your own business.
The more sources of income you have, the more financial stability and security you’ll have.
Check out this post on Stay At Home Mom Jobs, where I created a curated list of 23 potential side hustles (or full-time gigs!) that you could take on right now to boost your monthly income.
Start an emergency fund.
One of the best things you can do for your financial future is to start an emergency fund. Stashing a small savings away will help you cover unexpected expenses, like a car repair or medical bill, without going into debt.
Talk to a financial advisor.
One of the biggest misconceptions about finances is that financial advisors are only for “rich people.” The truth is that no one can benefit more from financial advice than people seeking more financial stability.
If you want to get started on the path to financial freedom, I recommend talking to a financial advisor. They can help you create a budget, invest in your future, and figure out the best approach for ridding yourself of debt.
Yes, financial freedom is possible for single moms. Getting there will take some time and effort, but it is achievable. The first simple step is to define what financial freedom looks like for you. What are your goals? What does your ideal life look like? Once you have a clear vision of what you want, you can start setting small goals to help you get there.
And, if this article encourages you, please, share it with a friend AND make sure you’re subscribed to In Full Bloom, our digital magazine for single moms!
What do you think, mama? What’s your motivation for achieving financial freedom? Let us know in the comments!
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