Going Solo: Money management for singles

In a nation obsessed with marriage, many women and men today are choosing to stay single of their own volition. While this is a progressive and powerful decision to make, it also comes with additional responsibilities. You might not want a knight in shining armour by your side, but that means that you have to save yourself from all potential financial blunders.

So if you are a single adult looking to make the most out of your money, then read on for our expert tips:

Start investing early:

If you know that you are destined for the single life, it is best to start making your money work for you early on. This means that you should start investing your money in mutual funds and other avenues as soon as possible to ensure maximum returns later on in life. When figuring out your portfolio, consider more stable investments like Systematic Investment Plans (SIPs) over risk-heavy avenues like stocks and cryptocurrency. You don’t have to be single to do this; everyone can benefit from investing early on.

 

Beef up your emergency fund: Usually, your contingency fund should easily cover obligatory costs like food, rent, house repairs, salaries for support staff, etc. for a minimum of 6 months. But if you are single, especially if you are a single woman, you should consider saving at least a year’s worth in your emergency account. This is because women earn less than men, so they have a wider gap of expenses to cover. You also want to make sure that this emergency fund can help you survive big financial hits like career changes or housing.

 

Get health insurance: Many singles don’t realise it, but medical costs can pile up later in life, especially if you have a chronic disease or have to deal with an unexpected accident. So if you are single and don’t have health insurance, take this as your sign to get on a plan as soon as possible. Ask your workplace if they offer health benefits, or choose from the endless array of health insurance plans than Indian companies have to offer. After all, it is easier to pay a monthly insurance premium than scramble for large sums of money when a health emergency strikes.

 

Turn spare time into a side hustle: One of the best parts of being a single adult is that you are in charge of your own time. And since you don’t have to commit your time to a significant other, why not use that time to bring in some extra cash? Start by taking stock of your skills and interests and then look for relevant freelance projects online. Not only will it help you expand your professional contact book, this is also a great way to earn an additional income at your own convenience. You can also make a passive income through rental properties, royalties, and affiliate marketing.

If you’d much rather not work in your spare time, you can also invest your time in a course, be it a financial literacy course for beginners or even a course relevant to your field of work. This is a great way to upskill yourself and make yourself more bankable later in life.

Plan ahead: If you think that estate planning is not for single adults, then you might be in for a shock. Say you’re married and something were to happen to you, your financial responsibilities would instantly be transferred to your spouse. But as a single person, there is no automatic proxy, so you need to focus on your own protection. This means creating a clear and detailed plan for someone else — be it a trusted family member or even a friend — to make decisions for you if you are unable to.

You also should have a clear idea about where your money will go upon your passing. Some people choose to give their entire estates to charity, or you can pick an heir like a close family member or even a friend.