Single Mom's Money Tips For 2017

I'm going to branch out of ADHD and SPD and talk about something nobody likes to talk about unless they're in crisis mode. Let's talk about money! I’m not a financial advisor and I don’t pretend to be one on TV, but I've learned that financial fitness comes from practicing educated choices consistently (in accordance to your own priorities and values) and staying informed about money matters. Last year I challenged myself to try new money moves past my comfort zone and they weren't as scary as I thought they would be. Maybe you're already doing some of the things below, but maybe you'd like to try a couple new.  Let's get to it: on with the tips!

1. If available at work, consider taking advantage of a Flex Spending Account (FSA) for medical and childcare expenses. This is especially great if you have little kids and/or high medical bills. In a nutshell,  FSA is a reimbursement program for medical and childcare expenses — it allows you to save up to 30% of your childcare expenses by using PRE-TAX DOLLARS. This means more is taken out of your paycheck BUT once you submit your claim paperwork, the money goes right back into your checking account (within a week). I have to admit, at first I thought this was some sort of scam, but it’s a smart tax move that is under the radar for a lot of people. It’s a bit of a hassle getting used to it at first, but your tax burden is significantly lower. Taking just 5 minutes every couple of weeks to submit my childcare paperwork is not a big deal. Also, many FSA programs issue a medical debit card funded by the amount taken out of the paycheck, so co-pays and medical bills can be paid directly to a medical provider, which means you don’t have to pay out of pocket. 
2. It's never too late to take a realistic look at your retirement years and get smart about it. It's easy to get overwhelmed with saving so much money, especially when you're on a single income. However, if your workplace offers a 401(k) retirement plan and/or pension with a match, you can start flexing your "saving muscles" with a small percentage and add a percentage or two every year. It can be pretty scary to have so much taken out of your paycheck, but the goal is to gear up to saving 10-20% of your paycheck. When you get raises, you can increase contribution percentages to your retirement plan. Let me also point out that saving for retirement via a 401(k) means that you're saving with PRE-TAX DOLLARS which lowers your tax burden again. Moreover, saving automatically is a great technique to build wealth without having to think about it. As someone who's very late in the saving-for-retirement game, I'm here to tell you that the sooner you start, the better. 
3. Saving for higher education is extremely important to me. I know some people say "you can borrow your way to college but you can't borrow for your retirement". While that's true, I feel like they are not mutually exclusive. Many of us, single parents or not, cannot put away the entire amount for a child's college fund, but anything is better than nothing. Starting a 529 Plan may have tax advantages in your state and contributions can be made automatically or on demand. In fact, family members can contribute to the fund as well—encourage grandparents to donate on birthdays and major holidays. A great free resource for information with a savings calculator is www.savingforcollege.com. I personally aim to save 50% of my kid's college and the calculator shows a breakdown of how much to put away every month. It's super easy.
4. Make money saving a game. When you set a budget for something, challenge yourself to go even lower. This is a mind game, not a guilt trip. Negotiating and compromising with oneself can be fun. The grocery budget is everyone’s weakness, but don’t forget to revisit your phone plan, your insurance plans, and any regular discretionary expenses that you haven’t paid attention to for the past six months or year.  
5. Consider a side hustle that is financially viable and doesn't zap your energy. Having a side hustle may be  a way to supplement your income but beware of expenses, extra taxes, and how much time you have to devote to it. Unless you have a legitimate side hustle or business, meaning you actively provide services or products for money, you may not be able to itemize your expenses in your taxes because it’s considered a hobby. If it's worth the time and effort, I have a board on Pinterest with tons of ideas for you. I personally have my freelance graphic design business with very select clients so I don't overcommit my evenings, but I'm planning on trying out a couple of passive income ideas this year. It's always a good idea to talk to your accountant too.
6. Do you have an emergency fund yet? Having at least 3 months of expenses for emergencies is important for peace of mind but, ideally that money shouldn't be touched unless for a catastrophic event, like losing a job or accident. Once you build your emergency fund, consider building a cushion fund for large seasonal expenses like summer or spring break camps, new school year supplies, car troubles, and so forth. Any extra cash can go right into that cushion fund that shouldn't be your primary checking account. The way I do it, I have a savings account with my emergency fund and anything above what I allocate to be my emergency fund is my cushion fund. So, for example, my 3 months of expenses total $X, and anything above $X is my cushion fund. Of course, opening a separate checking account for this purpose is possible as well but I get confused with bank fees and money transfer limitations, so I opt for keeping things as simple as possible.
7. Invest in your health. Practicing self-care was not a choice for me last year but it taught me that health issues can easily go unnoticed for many years when you put everyone else's needs ahead of yours. Investing in your own health means different things for different people but don't ignore what your body is trying to tell you. Listen to it, make changes. Single parents, especially those with complex kids, deal with a lot of stress and taking care of yourself seems like a tall order. Just like financial habits, new health habits can start in small increments, like going for a walk on your break. The healthier you become now, the healthier you can be in your later years. Renew that commitment often. I like to listen to the free podcast of Half Size Me for inspiration and motivation.
8. Get more financially literate than last year. Read articles, listen to podcasts, read books. Get smart about money, take control, get hungry. You don't need to spend money, your local library is a GREAT resource for books and audiobooks. I have a special place in my heart for Dave Ramsey but I don't share a lot of his personal views. Nevertheless, I listen to his common sense financial advice often on his free podcast on iHeart Radio. 
9. Save gas by driving sensibly and inflating your doggone tires. I bought an old hybrid car last year to replace an even older car (the wheels were literally falling off) and this car reminds me daily what a terrible driver I used to be. I used to accelerate fast when the light turned green and never inflated my tires. Now I'm one of those people that drive slowly (so the electric battery kicks in whenever possible) and I'm reminded that the doggone tires need to be inflated. I learned to use the pressure gauge otherwise that pesky yellow light on my dashboard won't go away. Moral of the story: I feel like an idiot telling you that I never knew any of this stuff but now my gas bill is less than half what it used to be. Also, Volvos die horrible, expensive deaths that drag on for years and years.
10. Make saving a habit this year. Lowering your expenses and increasing your income are ongoing efforts but don't be afraid to dream. Dreaming is free, yet a powerful way to propel you forward. Saving even small amounts every month in various categories helps to build traction as well as training your mind to save consistently until it becomes a new habit. 

Final thoughts

These are just some ideas for this year. Everyone has different needs. Ultimately, your financial moves will largely depend on your ability to be honest with your spending and yourself, and stay accountable. We all have our own weaknesses and strengths but identifying them first and strategizing will help you achieve your goals faster. Remember to dream big, it’s FREE. You got this, now go conquer the world!