If you’re single, you might be wondering how to protect your future finances. After all, you don’t have someone else’s income to fall back on as a buffer. That’s why it’s important to protect your future financially if you’re single and get your money organized.
Protecting finances as a single person
If you’re single that means you are the most important priority to yourself. Obviously, there are pros and cons, but it’s important to take action so that you are being proactive and taking care of your financial future.
Think of protecting your finances as the ultimate act of self-love. You don’t need to be in a couple to practice love. You are your best investment so now is the time to get your finances in order to show your current and future self all the love you need. Having choices, opportunity, and safety can equate to self-love. Here are some steps to take to protect your finances if you’re single.
Fill up your emergency fund
When it comes to emergency funds, many people say save three to six months’ worth of expenses. If you’re single, consider saving the full amount of six months. If you can, consider a year.
When you’re single, you don’t have the support of a spouse to help out with the rent or mortgage if you fall on hard times. For that fact alone, having more in your emergency fund is key to protecting your financial future.
Pay off debt, now
Of course, everyone should focus on paying off debt. But if you’re single, it’s more important to pay off debt now so that you can free up money for your financial future.
You don’t want to just be keeping up with payments but not saving for your future. You might not always be single but for now, you want to focus on supporting yourself now and in the future.
Even people who are married have the unfortunate possibility of getting a divorce at a high rate, near 50 percent. So, ensuring you’re debt-free and have a savings is so important.
Audit your insurance
As a single person, you want to do a complete audit of your insurance situation. Do you have good health insurance? What is your co-pay for a doctor’s visit? More importantly, what is the out-of-pocket deductible, and do you have at least that much in an emergency fund if you were to get sick?
Do you have renter’s insurance? That’s something to consider to provide safety buffer and cover you in cases of theft. For example, if you have items stolen from you when you’re out, you can often get that covered under renter’s insurance.
You also want to look into disability insurance. Many of us are vulnerable to financial challenges if we’re unable to work. If you don’t have a partner to rely on financially, you need to be able to take care of yourself financially through disability insurance in case something were to happen.
Check out various options for disability insurance and find the best rate for your needs. That way you’ll be protected if you experience a loss in income if you were to get injured or sick.
Review your assistance options
No one wants to think that the worst will happen to them. But sometimes if you imagine what the worst is and what you’d do in that situation, you end up feeling better knowing that you have options.
For example, if worst comes to worst, could you apply to be on food stamps? Could you go on welfare or move back in with your parents? Is there a side gig you can do that you know could bring in easy money?
When it comes to your support network, take an inventory of what’s available to you. Do you have a best friend nearby that you know you could crash with them if something were to happen? Do you have a cousin that could help out with babysitting if you needed some support as a single parent? Review your network and what assistance options you have available to you.
Plan for reaching goals solo
Whether you’re single or coupled, money should be used as a tool to help you enjoy life and reach your goals. But if you’re single, you don’t want money to be the reason stopping you from reaching your goals. You may or may not find a partner to share those expenses with but you don’t want to hold your breath, waiting.
So look at your short-term and long-term goals and everything in-between. What do you want to accomplish? And make a plan to reach those goals by yourself. Do you want to save up and buy a house eventually? What will a downpayment look like?
Do you want to have a child on your own? What would that process look like and what would it mean financially? Do you want to go on an unforgettable trip to Croatia or Vietnam? Put your energy into a budget and make a plan to make it happen.
Just because you’re single doesn’t mean you need to put your goals on hold. It may take longer to save up for or be more frustrating but it is possible. You can do it.
This Valentine’s Day give yourself the gift of self-love and financial protection. Literally investing in yourself by creating a budget, paying off debt, saving for your goals and making sure you’re planning is how you can protect yourself financially if you’re single. You don’t need to feel sad or alone because of some Hallmark holiday. You have more freedom than you think.