by Amela Piric

Created on: May 10, 2009   Last Updated: July 17, 2009

As a single you are best placed to take care of your finances as you only have yourself to take care of. Advanced financial planning and mastering money management skills will help you attain financial stability in life and a peace of mind that comes along with it. Use your time of singleness wisely to define your financial goals in life and start saving and investing your money and planning for your retirement on time. Take the time to learn how to become a more critical consumer of information and anything that is nicely packaged and presented to us.

Below listed are suggestions on what you can do as a single to adequately plan and prepare you for a financially stable future:

1. Design a financial plan that includes clear financial goals

If you know your mission in life and where your priorities lie, it will not be difficult for you to design your financial plan based on your short and long-term financial goals in life. The more precisely you are able to define your financial goals, the closer you will come to achieving them. Your financial plan or budget will help you exercise more efficient control over your money.

2. Master efficient money management skills

It is now as a single that you are best placed to learn how to manage your money efficiently. Think about your need to own a home rather than to always have to rent it. Think about securing money for your emergency fund or your much needed vacations. Start showing financial discipline and responsibility now so you can reap the benefits later whether single or married.

3. Develop critical thinking skills

Become a more critical and informed consumer of information and anything that is nicely packaged and presented to you. Be aware that a culture in which we live is strongly influenced by the culture of consumerism. Thus, you should work towards developing critical thinking skills and learn to differentiate between your wants and your needs. This will help you avoid impulsive spending which can easily lead into debt and thus life full of worry and insecurities.

4. Avoid debt

You should know that every dollar one earns is instantly diminished in value if you are indebted. As best experienced nowadays debt leaves you vulnerable to short-term marketplace challenges and economic slumps that you would otherwise painlessly withstand. You should avoid debt and credit cards due to high interest rates that banks are charging and rely on cash instead. This will help you avoid unnecessary expenses and maximize your savings.

5. Save in order to invest

Save now as you will appreciate it when you get old. It is only wise to learn early on how to get the money to work for you. Rather than being a tenant for so long and paying rent to somebody else, work hard at saving up your money to buy your own house. You'll always be able to rent one floor of your house and thus earn money off of it in case of need. It is a good way to diversify your source of income.

5. Plan for your retirement on time

The earlier you start saving for your retirement the better off you will be regardless of the initial sum of money invested. There is no better time to start planning for your retirement than now.

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