Single parents, relying on one income, often face financial challenges, whether it’s always been that way or due to divorce or loss of a spouse. Variables such as child support, alimony, or a lack of either are factors that add to the complexity. Chris Hogan, financial expert with Ramsey Solutions, shares that even with these unique circumstances, the solution for single-parent families is similar to what every household needs - a clear road map to follow so they can move toward financial stability.

Chris is passionate about empowering people to gain control of their finances by making budgeting simple. He shares that regardless of the amount of income or expenses for any household, the common denominator to gain control over your finances is to begin using a budget.

A budget is a tool

For some of us, the idea of budgeting seems scary and complex, maybe even overwhelming, or impossible. Chris shares that using a budget doesn’t have to be any of those things. Rather, a budget is a powerful tool for healthy control over your money and a huge step toward personal freedom.

Budgeting brings freedom

The first step in developing a budget is understanding how much money you have coming in and going out. Determining how much income you have and knowing your expenses helps you begin to gain control over your finances. Rather than looking at a budget as a restrictive tool or punishment, we need to change our mindset, and look at it as a tool for personal freedom and success.  Financial guru, Rachel Cruze says, “A budget gives you permission to enjoy” and this echoes Chris’ approach. A budget is meant to be used for our good so that when we do want to spend money on dinner out or buying something we want, we don’t have to be nervous about our card being declined or a bill being unpaid. A budget is a tool we can use to have a life we can enjoy while knowing our obligations are covered.

Developing a budget, knowing your income and expenses, is the first step toward that freedom. Figuring this out will take several months but it’s time well spent.

Proverbs 27:23 “Know well the condition of your flocks and give attention to your herds.”

What comes to mind when you hear the word “budget”? Do you see it as a tool toward financial freedom and steps toward the life you want? Why or why not?

The Four Walls

Next, it’s necessary to be aware of the four walls we must take care of first. These walls are housing, food, transportation, and utilities. Notice, says Chris, he doesn’t include gifts in there, shoes, or golf clubs, or even eating out. Instead, we must take care of essentials.

Especially during the pandemic, incomes have changed, hours have been reduced, and more than ever before these four walls must come first. Budgeting must be intentional. If we know these four walls are regular expenses, we prioritize them. Look at the things that are taking away from these priorities. For example, Chris says if you’re eating out three or more times a week, that is taking up a substantial portion of your budget. Reduce eating out to twice a week at most or even better start cooking at home. This is a huge money saver and a way to take control.

The definition of insanity is to keep doing the same thing over and over expecting a different result. If nothing changes, nothing changes! Taking control of your finances means learning. Learning is uncomfortable but our kids are looking to us so it’s important to become an effective leader for them.

Redefining our dreams

Another part of the budgeting process is redefining our dreams. When we have control over our finances, we give ourselves the power to reimagine our future. As we learn to manage our income and expenses more effectively, even if the pie we are dividing up is smaller, we gain the ability to make new dreams a reality.

Chris knows budgeting for single parents can be overwhelming. Single parents...