Being single has its perks. But, when it comes to managing money and life events, many single people can fall into traps. Revamp the health of your finances by examining bad money habits, and learning from past mistakes. Eventually, as the years progress, flying solo can be increasingly challenging for personal finances if ill-prepared.
Avoiding getting insurance
When you don’t have a partner or spouse to remind you to eat healthy, exercise, or go to the doctor, it’s easy to neglect your health. Without disability and health insurance, things can get ugly if something unfortunate happens. Bills can add up, and being cut off from a single source of income can quickly spiral out of control.
Forgetting to prepare for rainy days
When you’re single and think you can always take on the world alone, it’s easy to forget to plan for the unexpected. Single people should work toward saving for three to six months of living expenses or at least maintain an emergency fund. Try to manage stashing away a minimum of $500 for a rainy day. You’ll thank yourself later.
Never setting and sticking to financial goals
Planning out a budget can be a drag. However, why not consider setting specific goals for your money, and allocate your resources accordingly? Figure out how you want to live your life and adjust your money habits to make your dreams a reality. Stick to your goals and be aggressive until you reach success.
Always partying like a rock star
Getting to keep and spend all of your money on yourself when single can be a blast. However, always indulging in frivolous spending can quickly add up. It’s perfectly fine to treat yourself now and then, but always spending money recklessly is a bad habit that needs to be broken. Increase your awareness of your spending habits, set financial goals, and plan for the future.
Forgetting the approach of the golden years
The single life can make you feel like you are invincible, especially when young and childless. However, as time marches on we all eventually get old. Be prepared for singledom in old age by putting money aside to pay for retirement care. Don’t neglect the importance of getting a will, signing up for insurance policies, and having a plan for your estate upon death.