10 Clever and Simple Budgeting Tips For Single Mums

Sticking to a budget is a skill that all single mums should aim to master. Going from a double-income family to a single-income one is challenging for even the savviest financial mums. Ella Hickman, from Hickman Family Lawyers in Perth, has put together 10 super simple budgeting tips for single mums to help you on the road to financial security and beyond, to financial freedom.

Work Out Your Income

The first step to smart budgeting as a single mother is to work out your total income per month.

You might have income from several sources, so be sure to include everything. This includes employment earnings, side hustle income, and child support payments. Also, are there any Centrelink payments you’re receiving or may be entitled to?

Starting a basic spreadsheet is the most convenient way to put your new budget together. They are easy to use and update. Plus, they make working out your figures simple to add and subtract without the mental exertion the handwritten version would demand.

Simple Budgeting Tips for Managing Fixed Expenses

Next, it’s time to work out your expenses – starting with your fixed expenses. These are the same at each frequency – things like rent or mortgage payments, internet, loan repayments, and gym subscriptions. Don’t forget entertainment subscriptions like Netflix and Spotify, health insurance, car insurance, home insurance, phone bills, etc.

The easiest way to collate this is to look at your bank statements and work out what is going out each month at the same time and at the same cost. Pop these figures onto your spreadsheet under expenses. If they are paid at different frequencies, work out the overall weekly, bi-weekly, or monthly costs to match your pay frequency. This will make it much simpler to calculate your income vs expenses later on.

Work Out Your Variable Expenses

Now it’s time to do some real maths. There are lots of variable expenses in day-to-day life – groceries, fuel and public transport, and utility bills. To name just a few common ones. They’re never the same each time you pay them.

So, how do you accurately work out these expenses? You’ll need at least a few months’ worth of bank statements and/or receipts if you use cash. Look at each expense and add up what you’ve spent in total over, for example, a 6-month period. Now divide by the 6 months. Or whatever time frame you’ve looked at, to get an average monthly spend for that expense. Using at least 6 months will give a more accurate average than using just a month or two.

For example, you’ve spent $6440 on groceries in 6 months. Divide that figure by 6 to get an average monthly spend of $1073. Or divide by 26 to get a weekly spend of $248.

Income vs Expenses

Once you have all your income and all expenses worked out, it’s crunch time!

You should be able to work out if your income is covering all your expenses or if you’re living beyond your means.

You’ll now know for sure what you have left over at the end of each month that you can put towards savings or other financial goals. Or you’ll know you’re spending more than you’re earning, so it’s then time to work out what you can cut back so you don’t get into financial trouble.

Prioritise Debt: A Key Simple Budgeting Tip

If you have debts such as personal loans and credit card debt, make this a priority to pay off. These often have the highest rates of interest when it comes to debt, so paying it off as soon as you can will save you in the long run.

Simple Budgeting Tips to Cut Back on Costs

No matter whether you’ve got funds left after all expenses are paid or not, single mum life can be challenging and sometimes unexpected, so consider what can be cut from your expenses without affecting your essential needs.

Do you really need Foxtel, Netflix, Stan, Binge, and your Spotify premium family plan?

Are you spending way more at the supermarket checkout than you realised? Could you switch supermarkets or brands to save money each time you shop?

Kids have too many sports and not enough time? See if they might be happy to drop one.

Look into fuel discount cards or fuel vouchers and keep an eye on the price before you fill your car up at the closest fuel station.

Find New Ways To Save On Regular Expenses

Are you over-insured following your separation? Could you reduce your cover based on your new family’s needs?

Could you find a cheaper phone or internet plan, or bundle them together and save?

Is there a discount rate available with your gas or electricity supplier?

Have several loans or credit cards? Consider consolidating them into one or moving to a lower-interest-rate credit card.

There will always be things you can do to cut back on your outgoings as a single mother. It might take a lot of initial effort to research and put it in place, but if you put the legwork in, you’ll reap rewards for months or even years to come.

Set Up Separate Bank Accounts for Different Expenses

Depending on how far you want to take your budgeting, sometimes setting up different accounts for different expenses and savings can help you stay in control of what is being spent and where.

You could separate your accounts into categories such as:

• Regular Household bills
• Groceries and fuel
• Spending money
• Emergency savings
• Individual saving goals (e.g. holiday or big-ticket items)
• Annual expenses (e.g. insurance renewals, council rates, car registration renewals, etc.)

Having separate accounts can give you more control and awareness of where your funds go, as sometimes, when all your income and expenses go in and out of the same account, it can be easy to lose track of where your money goes each month.

Build Savings: One of the Most Valuable Simple Budgeting Tips

Don’t have an emergency savings fund? Time to start one!

The key to building any kind of savings is to put these funds away as soon as you get paid – don’t wait and see what’s left at the end of each month. As a single mum, there will ALWAYS be something to spend it on – new shoes for the kids, an unexpected bill, school uniforms, or even a top-up grocery shop.

By working out your income and expenses first, you’ll know exactly what’s left and what can be saved each month after doing your homework on what to cut back as well.

Having more than one savings account can help you feel more financially secure as well. One with ‘absolutely do not touch’ funds for a very rainy day, and another account with funds you can build up and have ready to go for those annoying larger expenses that will always crop up when you least expect it, like a new washing machine or car repairs.

Many single mums put in place a separate savings account for Christmas and birthdays, too – that way, when these events roll around, you’re not having to use other funds on presents. Just $25 a week adds up to $1300 a year!

Consider Additional Income Sources

If you’d like to increase your income, there are some additional ways you can top up your earnings as a single mum without minimal, if any, impact on your current lifestyle and commitments.

Here are some ideas to consider:

• Sell unwanted items
• Become a mystery shopper
• Rent out a spare room, your car, or your driveway if you live in a congested parking area used by commuters
• Take on babysitting or dog-sitting
• Have a skill? Consider doing some freelance work and starting a side hustle.

How These Simple Budgeting Tips Help with Mental Health

Taking control of your finances doesn’t just ease the strain on your wallet. It can also do wonders for your mental health. For single mums, managing money effectively reduces stress, improves confidence, and provides a sense of security for you and your family. Knowing where your money is going and planning for unexpected expenses can give you peace of mind, allowing you to focus on what truly matters. Small financial wins can also foster a positive mindset, showing you that progress is possible, one step at a time.

Hopefully, you’ll find these budgeting tips useful as a single mother. Remember, the sooner you start putting these budgeting tips into practice, the sooner you’ll start seeing the results. Every little change will add up over time, so start today, get creative and get your family on the path to financial success!

Ella Hickman

Ella Hickman is the owner and Principal of Hickman Family Lawyers, one of the leading family lawyers in Perth. She practices almost exclusively in family law in Perth and has a particular interest in parenting and children’s issues, matters arising from domestic violence in relationships, and property settlement cases.

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