Updated: May 8, 2021
Valentine’s Day is one day that most couples look forward to. Buying gifts and planning the special day takes time and effort. But why should couples have all the fun?
Raise your hand if you are single and you are ready to celebrate Valentine’s Day in your way. Valentine’s Day is about love and who else can love you more than yourself. And what can better be than having a guide to help you get smart with money?
Here’s a guide for all the single people to inch closer towards smart money management.
Have an emergency fund
Having a Plan B has its importance, and it is especially true for money management. Emergency Fund can be your Plan B when things go south. For instance, your car can break down or there can be urgent home repairs that need your attention. Having an emergency fund or contingency fund will help you tide over such unforeseen expenses without breaking your other savings and investments earmarked for other financial goals.
Take a term insurance cover
Many people take term insurance or life insurance after they start a family. You don’t have to wait to start a family to take a life insurance policy. Term insurance is the cheapest and simplest life insurance policy with a high life cover. It covers life risks and your nominee receives the sum assured in case of an unfortunate event within the policy tenure. The premium paid for a term insurance remains the same throughout the insurance period. So, if you get a term insurance cover when you are young at a nominal cost and save on premium payments throughout your life.
Start saving a small portion of your income
You may be single or you plan to remain single all your life, but that isn’t an excuse for not saving money to fulfil your travelling goals. The word ‘travel’ may sting like a bee, but things are slowly becoming normal and you may want to save some money so that you don’t miss out on travel.
To save money, whether it is to go on a vacation or give yourself a diamond ring, you need to save money. Opening a Recurring Deposit(RD) and investing in mutual funds through Systematic Investment Plan (SIP) can help you save and invest a small amount at regular intervals to fulfil your desires. SIP is an investment facility offered by fund houses that lets investors to invest a pre-determined amount of money at regular intervals.
Don’t forget to splurge
Where is the beauty of saving and investing, if you can’t splurge? Our brain release dopamine when we receive a reward and cycle continues. Our brains get hooked on to these things. So, make savings a rewarding experience. E.g., if you want to cut back on takeaways to save money, you can set a monthly or reward system if you can stick to your plan. In this way, you could save more money for your financial goals. Remember, not to be harsh on yourself.
Being single is a great time to reinvent yourself and take care of your emotional, mental health, including financial health.