Being single means you can make your own rules, whether in your finances or your lifestyle. So how do you make the choices to help set yourself up for success?
As a single person, you are solely responsibility for supporting yourself. This can mean a higher cost of living, particularly when it comes to things like rent, food and holidays when you can’t share expenses with a partner. However, it’s not all bad news. As a single person, you don’t need to worry about a partner’s debts or spending habits or consider their goals as part of the overall picture. You can decide what your financial goals are and choose how to get there.
So with that in mind here are three great ways to not only take control of your finances, but also to really thrive.
1. Be prepared
While it's generally recommended that all financially independent adults have some form of emergency fund to fall back on if times get tough, this is especially true for singles. Job loss, breaking your leg at the snow, a change in circumstances or an unexpected expense could all put a big spanner in the works if you're not properly prepared and you don't have someone else's salary to back you up. If you get into the habit of saving money and treating it as a non-negotiable monthly "expense", pretty soon you'll have more than just emergency money saved up: you'll have retirement money, vacation money and potentially even money for a home down payment.
The same goes for income protection insurance. If you're on your own, it's vitally important to have a back-up in case a situation arises where you can no longer work. Income protection insurance can provide this safety net.
2. Take an interest in your super
While looking into your super fund, the money that will pay for your retirement might seem about as interesting as watching paint dry, but you could find that once you start taking more of an interest there are benefits to be had.
Your super can help play a part in your future dreams. Maybe your retirement dream involves that Balinese villa you saw on your last trip. Or opening a business. If you start planning now, you can take the steps to help make it a reality. For example, you might want to change your super strategy to a more aggressive or a more conservative approach. Or you might want to consider extra contributions. Speaking to a financial adviser can help give you confidence in what you want and the steps you can take to get there – the earlier you start, the more time you have to work towards your goals.
Investments can also form part of your financial strategy – be this in property, shares, fixed interest, cash or even items like artworks. Start doing your research into the kind of investments that interest you, and what might be suitable for your goals and needs. Speaking to a financial adviser can help you identify what investments might work best for your goals.
Take the opportunity
Focusing on your finances now could serve you well if your situation changes down the track.
This information is current as at 25/10/2017.
This information does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness, having regard to your personal objectives, financial situation and needs having regard to these factors before acting on it.