8 Money Tips For Women Living Alone
/Whether it is by choice or due to unfortunate circumstances, living alone can be expensive for many women. When you are living alone, all of the financial responsibility falls on your shoulders while others are able to share the costs with a partner or roommate.
While living alone offers incredible freedom and the benefits of having no one to answer to, it can take a major toll on your financial health especially if you are stressed about making ends meet. Since there is no one to share your expenses with, if you experience a job loss or reduction in income, it can put a big strain on your personal finances. However, there are ways to ease the financial burden and experience a life of abundance, peace, and prosperity.
If you are a single woman living alone and looking for tips to live on how to manage your money with ease and boost your income, keep reading for insights that will guide you on your path of financial freedom.
Photo by Lhairton Kelvin Costa from Pexels
1. Create a spending plan
The first step is to become aware of how you are spending your money. While budgets work for some people, I prefer to use the term “spending plan”. It feels less restrictive and more expansive. If you prefer to use the word budget, then feel free to substitute throughout this section.
A spending plan will show you where you stand financially and help you prioritize your finances. For example, I know that I love to spend money on quality food, so I make a plan to spend a certain dollar amount at the grocery store every month.
By creating a spending plan you can find your balance between spending and saving each month. When I create a spending plan, I prefer to work backwards. Some people start with how much they earn and then deduct from there. My approach is to start with how much I would like to spend and then compare it to my income.
If there is a gap where my spending is higher than my income, I will ask myself do I need to cut my spending or increase my income? For me, 99% of the time the latter is the answer that feels right to me. Hence why being a Money Maker is an identity I wear proudly.
2. Explore ways to make more money
There are plenty of ways to earn more money outside of the traditional 9-5 job. Thanks to the internet, there is a multitude of side hustle opportunities, freelancing opportunities, and other ways to make money.
Here are some ideas you can do to increase your income:
do freelance work online
sell your unwanted items at yard sales, thrift stores, or using apps, like thredUP, Poshmark, Decluttr; or by using sites such as eBay, Amazon, Craigslist, and Facebook Marketplace
flip items online using sites like eBay and Amazon (using the FBA program)
sell your own handcrafted items at local craft fairs, or online at Etsy
become a food or grocery delivery driver with delivery services like DoorDash, Poshmark, Shipt or Instacart
walk dogs
test apps and websites online
3. Give yourself permission to splurge on your home
While other money bloggers may tell you to reduce your housing cost, in my experience doing the opposite has led to increased financial abundance. When I gave myself permission to move into a gorgeous 2--bedroom condo with a view of the mountains and lake, my creative juices went to a whole other level. I woke up inspired and excited to do freelance gigs and make more money.
Some people may say this was lifestyle creep, but even though I was spending more on rent, my other expenses remained steady or decreased. I believe this was because I consciously spending money on what I wanted to and therefore did not mindlessly spend money on areas of my life that did not bring as much fulfillment.
With that said, housing costs can be costly for women living alone, as there is no one to share this expense with. It is the largest monthly expense for most single women living alone.
If you are spending more than you would like to on your home or rented apartment, find and rent a cheaper apartment for less to save money. You could move to an area with a lower cost of living to save on rent each month. Or you can try looking for a smaller space that costs less.
4. Save for a sunny opportunity
One of my biggest pet peeves is when I read the phrase “save for a rainy day”. Words are power and you’re basically speaking into existence that a rainy day will arrive. Therefore, I prefer to use “save for a sunny opportunity”. In my experience, this has worked. There have been opportunities that arose for me that required spending money before reaping the rewards. An example would be when I was auditioning for a TV show, and had to cover the travel costs from San Francisco to LA. I ended up booking the gig, but I had to spend money first in order to make it happen. Saving for a sunny opportunity allowed me to do this.
With that said, there are rainy days. The biggest financial risk for a single woman is the loss of income through a job loss or illness. But you can reduce this risk by building up your savings account and taking out enough insurance to cover loss of earnings through illness. Aim to have at least three to six months' worth of living expenses in your savings in case you experience a job loss or have to live on a reduced income.
5. Cancel subscriptions you do not or will not use
If you are paying for subscription services you rarely use or do no use at all, cancel those unused or rarely used subscriptions to save money each month. You can use apps like Truebill and Trim to cancel subscriptions you do not use or will not use on behalf of you. Only keep those that you use on a consistent basis.
6. Cut the cable
You can cut your cable TV package if you do not watch much TV. Instead, you can look into cheap cable alternatives like Netflix, Hulu, Amazon Prime Video, or Sling TV that will let you watch your favorite TV shows and movies. I haven’t had cable for over eight years and I love it.
7. Negotiate or refinance for better rates
You can call companies to negotiate lower rates on your monthly phone or other bills when they are due for renewal.
This money-saving idea works especially well with cellular phone companies. Try to cancel your contract by telling your provider that you are taking your business elsewhere unless they offer you the cheapest rate. Your provider will probably offer you something to make sure you use their services again.
You might also be able to lower interest rates on your debt to help you save money on interest charges. Check out this article on how to negotiate your credit card interest rate. And this article for ideas on how to refinance your auto loan for a better rate.
8. Rent out your parking space
You can rent out your parking space when you are not using it to earn some extra cash. If your home is located near an airport, busy rail station, school, university, or major events, you can monetize your parking space to make some extra cash. Be sure to check with your specific area about the legal requirements to do this.
In Conclusion
Living alone as a single woman is expensive, but if you follow some of the above money tips for single women living alone, you can manage your finances with ease and grace.
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Disclaimer: the content presented in this article is for informational purposes only, and is not, and must not be considered tax, investment, legal, accounting or financial planning advice, nor a recommendation as to a specific course of action. Investors should consult all available information, and consult with appropriate tax, investment, accounting, legal, and accounting professionals, as appropriate, before making any investment or utilizing any financial planning strategy.
