by Angela Diggs

Created on: December 01, 2008

Financial planning when you're are single is a great idea. Why? Well, you do not have anyone to worry about besides yourself. Think about it. While you are by yourself, you get to get your money together. It is best to be in a great position financially before you get into a relationship than not. It is essential to be whole by yourself than fragmented. When your money is together you are a better person. Your confidence and self esteem go up. Do yourself a favor and give yourself the gift of financial freedom. Here are some helpful tips.

GET A JOB

Before you can plan what to do with your money you need to have some money. Yes, you must have some money. The good news is that you do not need a lot of money. You just need some. I suggest working full time 9am -4pm. It can be part time as well. Have a job consistently. This is the key. You must do what you need to do to get started.

PAY YOURSELF FIRST

Now that you have a job. Get into the habit of paying yourself first. This is important if you want to have some money at the end of the year. This means taking 5% of your paycheck and putting it in a personal savings account. Do this EVERY time you get paid.

GET YOUR CREDIT STRAIGHT

Check your credit score and make sure it is 700 and up. The higher the score the better. Make sure you get three reports. You can order them from Equifax, Trans union and Experian. Every report is not equal so it is important to get all of them. When your score is up to par, it can save tons of money. You can get lower interests rates. Check yours out.

THREE PIGGY BANKS

After you pay yourself, get three separate piggy banks. Label one SAVINGS, CHARITY and INVESTMENTS. In each of these piggy's put exactly a $1.00 in. Do this everyday. At the end of the month, take your liquid savings and investments and put them in a savings and investment account. Make sure the savings has a high yield. Nest month increase it by a $1.00. Over the next year you should see more money in your account.

GET ON A BUDGET

Get on a budget. This means limiting the amount of money you spend on a given item. Do not spend more than you make. When you do this, you have more money left at the end of the month. You could use the extra money to invest or go on a small get away.

SAVE THE CHANGE

Don't take your pennies for granted. Over time they add up. When you break a large bill, save these pennies. Put them into a container. At the end of the year , put them in your local "Coin Star" machine. Your change will be changed into paper money. Take this paper money and dump it into your savings account.

INVEST YOUR TAX RETURN

The next time you get a large tax return, don't spend it. Invest it in either a no load mutual fund or treasury bond. This money will grow over time and give you an annual return of 6% -8% on your money. Your money will work hard for you. This is way it should be.

ESTABLISH A 1 YEAR RESERVE

Save up a one year emergency fund. This amount should cover all expenses and more. I suggest saving up at least $40,000. This fund is meant as a plan "b". You never know what could happen. You could lose your job or become disabled. It is important to have this safety net there just in case this happens. Get started today.

Overall, these are few helpful tips to singles.

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