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Summary
- Since single people are sole financial decision-makers for their household, safeguarding financial future is vital for their peace of mind.
- According to the general rule of thumb, every single person should have an emergency fund with three to six months of his take-home salary.
- A single person should also have an estate plan ready, allowing someone else to take financial and medical decisions on his behalf.
Are you a single man or woman? If yes, have you financially secured your future? Worries would be less for those who have secured their financial future. And for others, it’s time for a serious rethink. Since single people are sole financial decision-makers for their household, safeguarding financial future is vital for their peace of mind. So, it’s high time to see where you are falling short. Here, we would discuss three financial strategies all single men or women could follow:
Flying solo is more fun with emergency fund
Flying solo can be fun, and even committed and married couples long for it at times. However, the journey can fade a bit due to fund-related concerns. This is when an emergency fund comes into play. According to the general rule of thumb, an emergency fund should have anywhere in between three and six months of your take-home salary. This fund can support your needs till you have no other robust source of income or a job. And mind you, shifting jobs is no cakewalk amid an economic slowdown or something such as the coronavirus pandemic.
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Do you have a retirement fund?
Since you are the only income generator in your house, think about the future. When you start with investing, begin with your retirement contributions first. You must at least be contributing enough to match your employer. There is no point in leaving free money on the table. The sooner you understand the magic of compounding interest, the better for you. You can even consider a health savings account and other such schemes to secure your old age. The strategy makes more sense for the fair sex since women generally have longer life expectancies than men.
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Do you have an estate plan?
Every single man or woman should always ask these three questions to themselves -- who will pay on my behalf if I can’t do so? What if I become incapacitated? Who will take health decisions for me if I am unable to do so?
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Generally, spouses take up the responsibility in these three cases. So, a single person should always have an estate plan ready, allowing someone else to take financial and medical decisions on his behalf. You must also add beneficiaries to all of your financial accounts.
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