Single and savvy: Three tips to becoming financially prepared
With 52% of households comprised of single people, single is now a new normal in Canada.
The cost of living is high for individuals who are solely accountable for their household income, budgeting and being financially prepared for the future.
Tips for a single-person’s budget
As a single person, it’s important for you to pay greater attention to your current and long-term financial health since you may not have other resources to fall back on. If you need help or advice, you can work with an advisor, at no cost to you, to help you set up a monthly budget with a goal of having money to put into these priority areas:
- Debt repayment: If you have debt, get rid of the highest-interest debt first, which is usually on credit cards.
- Emergency fund: Without a partner’s salary as a support if you’re dealing with a layoff, injury or illness, it’s important to build up savings that would help you get through an average of about six months of unemployment.
- Retirement: Lacking economies of scale in living expenses and without pension splitting, you’ll probably need proportionately higher retirement savings. An advisor can help you determine how much of your income you’ll need to save to meet your retirement goals.