Financial planning for singles: where to start?

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Financial planning for singles: where to start?

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Many people do not worry about getting organized financially before getting married or moving in alone. However, at the front, this can make all the difference, because chasing the loss is always a thankless task, especially when it comes to money.

To avoid this problem, it is necessary to dedicate oneself early to a financial planning for singles. That way, you get used to saving, learn to control spending and guarantee a certain stability for the future that awaits you.

With that in mind, we have listed in this post some valuable tips to get you started planning financially. Interested? Check it out below!

What is the importance of organizing yourself financially?

The way we deal with money has a great influence on our daily lives. When we are unable to have the things or experiences we desire, we feel frustrated, stressed and dissatisfied.

If the person is in debt, the situation is even worse. With them come the charges, the tightening moments and, in more extreme cases, the dirty name.

On the other hand, when finances are going well, it is possible live more carefree, with more possibilities to guarantee basic needs and take care of their own well-being.

This is where the importance of financially organizing comes in: this is the first step to start controlling spending, creating new habits and being safe in case of unforeseen events.

The sooner you start, the better. Think about it: a person who lives with their parents has a much lower cost of living than someone who lives alone. This, in turn, has less expenses than a married person with children. So, if you are single, how about taking advantage of that spare money to think about your future?

If you are in your 20s and haven’t done it yet, don’t worry: it’s never too late to start. Just follow our tips and start putting everything in order right now.

>> Want more tips on how to handle your money better? Check out this other blog post: How to achieve financial freedom? See tips to achieve that dream! <

How to do financial planning for singles?

Good financial planning for singles involves setting a monthly budget, setting goals and thinking about the future. Do not know where to start? Check out the step by step to put the idea into practice the right way:

  • Write down your earnings and expenses;
  • Separate your expenses by categories;
  • Control your spending;
  • Set financial goals;
  • Set up an emergency reserve;
  • Start investing.

Write down your earnings and expenses

The first step in financial planning for singles is to know exactly how much money comes in and how much goes out of your account.

To begin, put your income on paper: it can be your parents’ allowance, your internship scholarship or your job salary. Keep in mind that this should be your maximum total spend for the month. After all, the main rule of personal finance is: never spend more than you get.

Then, write down all your expenses. Do not leave anything out, not even the coffees you take after lunch. Believe me: they can surprise you at the end of the month.

Separate your expenses by categories

Writing down expenses and earnings is just the beginning of financial planning for singles. The next step is organize the budget and assess your consumption pattern.

For this, use a spreadsheet or application and divide expenses into categories such as: housing, food, transportation, leisure and savings.

Then, define a spending ceiling for each of them, according to their needs and their reality. For example:

  • 30% of the income for housing;
  • 15% for transportation;
  • 15% for food;
  • 20% for leisure;
  • 20% for savings.

Finally, put the expenses you noted down in their respective categories and assess whether they are below or above the established limits.

This is a great way to have a detailed view of your spending, allowing you to create an action plan to cut costs and use your money more consciously.

Control your spending

Saving is also essential in financial planning for singles. When you don’t have so many obligations, the freedom to spend on leisure is greater, but care must be taken to ensure that there is no lack of control.

So, before making a purchase, ask yourself: does this fit my budget? Are my basic bills already paid? Have I saved a portion of my salary this month?

If your priorities are already resolved, there is no problem doing what you want with the money left over.

Another good tip for saving is enjoy promotions, especially in larger purchases. Are you going to change your cell phone? Search various physical stores and online to find out which one has the best value for money. And be sure to use coupon and discount apps: they can save you a lot of money!

Also keep an eye on your weekend programs. It’s okay to go to that super expensive club now and then, but it doesn’t have to be every Friday.

Instead, diversify your outlets with cheaper options, such as parks, outdoor sports and meetings at friends’ houses (or your own). So you have fun and maintain an active social life without spending a lot.

Set financial goals

Set goals it is critical to succeed in financial planning for singles. They are the ones that will make you have the discipline to save every month and reach the necessary amount to reach your goals.

First, think about what you want: change your car? Travel abroad? Buy a house? Then, set a deadline and the exact amount you need to collect.

For example: if your goal is to buy a £ 40,000 car in two years, you will have to reserve £ 1,750 per month. Will, give? Excellent. Won’t it? Try to increase the deadline or reduce the value of the goal so that it fits your reality.

Be careful not to set impossible goals, otherwise you will get frustrated and give up easily. If your goal is too expensive, break it down into smaller goals, and be sure to set a realistic deadline. Instead of looking for the first million, think about the first £ 10,000, then the £ 20,000 and so on.

Set up an emergency reserve

Build a emergency reserve it is indispensable to maintain balance in financial planning for singles. After all, unforeseen events happen to everyone, so it is better to be prepared for them.

The ideal amount for this reserve is 6 to 12 times your monthly cost of living. That way, you will be covered for a long time in cases of long periods of unemployment, without the need to tighten your belt until you put yourself back on the market.

Another advantage is having money for extra expenses without having to resort to overdraft, credit card or other types of loans. That way, you won’t have to go into debt if you have to buy medicine or take the car to the mechanic, for example.

Start investing

As important as saving is know where to leave your savings. At that time, many people resort to savings, but the truth is that there are much better options for make your money pay.

And we’re not just talking about the Stock Exchange, no. Titles of Direct Treasury and private fixed income, such as CDBs, are very low risk investments with returns greater than savings, being great options for you to invest your money.

As you study the financial market and acquire knowledge, you can venture into other types of investments, such as debentures and shares.

But don’t be in a hurry: build equity it is something to be done over time, not overnight. To become a good investor, take it easy, diversify your portfolio little by little and make investments according to your profile.

Now that you know how to start financial planning for singles, how about putting what you’ve learned into practice?

Take the time to put together a detailed budget, with everything you need to control your spending and plan for the future. That way you will have a better chance of reaching the next few years with guaranteed financial freedom!

If you liked the article and want to delve deeper into the subject, take a look at this other blog post: How to save on a daily basis: a complete guide.

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