Finances for a Single Person

As a 20 year old facing the real world in 2 years, financial planning and stability is of the utmost importance to focus on. As a single woman, it’s even more important to focus on my finances as I am responsible for everything. I am the sole income and have to pay all my bills myself. The Chief Editor of The Kiplinger Editors Newsletters, Mr. Kiplinger, speaks of the vast impact women in history have had with philanthropy. From sending kids to college, to working with social issues, Kiplinger’s words encouraged me to have an impactful future through philanthropy. In order to do this, I need to have a comprehensive plan of how to spend my money. The first step of dealing with money is to create a budget. An easy way to begin is to add up all expenses and compare that number to current income. Stacy Miller, a Wealth Advisor, suggests collecting data for 30 days on spending habits to identify where spending is going. Ideally, a budget is accurate but not a pain to work with. Everyone has different strategies to budget. Separating wants from needs is another good way to avoid overspending. Through controlling spending and tracking purchases, money can be saved. Miller also suggests using help when needed. Women are more likely to ask for help than men are, but there are countless apps, websites, and coaches or planners that can assist in budgeting and saving.Your twenties are your time to build a solid foundation for your financial future. To make sure I avoid debt, I need to be cautious using credit cards. Credit card debt is easy to get into and can take a long time to pay back. Instead of having debt and paying interest, I plan to set up an emergency fund. This emergency fund will hold enough cash to cover at least six months’ of living expenses. I also need to start saving for retirement early. As I am not yet employed, I plan to set up an IRA account. To prepare for the future, I will save for a down payment on a house. I plan to set up someone in my life who can gain access to my money and help make financial decisions in unexpected times. Life is full of unexpected moments, I need to plan accordingly. To do this, I need to make a list of assets, debts, and how to find them, along with instructions to access valuables. I also will make copies of insurance documents, wills, financial and health documents to have a hard copy in case of emergency. ⅓ of adults under 30 have student loan debt, myself included. Higher education costs increase as more young adults go to college. To pay this back, I plan to track spending, live at home instead of renting an apartment, and slowly pay off the debt. Once I have my finances on track and in the direction I want them, I can have extra money to donate to philanthropies that matter to me. As an environmentalist, I plan to work closely with an environmental advocacy nonprofit. Through the tactics stated above, I will have a financially independent future as a single woman. 

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Below are goals I plan to accomplish as a single woman: 

• Create an accurate, comprehensive budget. 

• Track all expenses, wants, and needs to avoid overspending. 

• Pay off debt. 

• Pay back student loans. 

• Create an emergency fund to cover six months’ of living expenses. 

• Have a close family member able to access important documents and financials. 

• Make copies of all pertinent documents. 

• Start saving for retirement early. 

• Save for a downpayment for my first house. 

• Pay myself first by putting money from my paycheck into retirement and mutual funds.

• Cook more to avoid spending money on eating out. 

• Set up an IRA for retirement.  

• Develop close ties with a philanthropy that is important to me.