Find affordable housing

Finding an affordable home isn’t easy. You may want to consider downsizing rather than jeopardizing your financial future. Carefully consider your monthly income, and be realistic about what you can and can’t afford. Another solution to the housing dilemma: find a roommate.

Secure your income

Wherever you end up living, concentrate on your biggest asset: earning potential. With no backup, your ability to make money is crucial. If hiring a babysitter so you can return to school means you’ll get promoted and make more money, then do it.

When you’re the sole breadwinner, you have all the more reason to protect your income against disaster. Most experts recommend carrying life insurance equal to six to ten times your salary.

You should also ensure that you have enough disability insurance either through your employer or on your own to protect you and your family in case you can’t work due to an accident or illness.

Scout for tax breaks

Parents who file as head of household usually pay a lower tax rate and are entitled to a higher standard deduction than single taxpayers and married couples filing separately. Parents may also be able to take a an exemption for each qualifying child, plus a tax credit for each child younger than 17 at the end of the year.

If your kids are in day care so you can work, you’re entitled to a dependent-care credit But if you can contribute to a flexible spending account, in which you may set aside pretax dollars for child care, you’re probably better off using the FSA.

Worried your child-support payments will bite back at tax time? Don’t be. Whereas alimony—a relative rarity these days—counts as taxable income, child support escapes liability.

Other Things to Consider:

• Take your lunch and snacks to work instead of eating out.

• Buy in bulk at the supermarket and use coupons.

• Entertain at home instead of going out to a restaurant.

• Start saving regularly for your children’s education by saving money from every paycheck. If your company or bank has an automatic savings plan, sign up.

• Pay off your credit cards each month to avoid interest charges on unpaid balances.

• Be sure you either update or create a new will. One of the most important items to include is naming a guardian for your children. If you do not name a guardian, a judge will appoint one and it may not be someone you would have chosen.

• Explore investments, retirement, and financial planning with a reliable, licensed advisor.

• See a credit counselor if you need help. Most communities offer counselors, low-cost legal clinics, and financial advisors who can help you plan for your present as well as future financial needs.

Find affordable housing

Finding an affordable home isn’t easy. You may want to consider downsizing rather than jeopardizing your financial future. Carefully consider your monthly income, and be realistic about what you can and can’t afford. Another solution to the housing dilemma: find a roommate.

Secure your income

Wherever you end up living, concentrate on your biggest asset: earning potential. With no backup, your ability to make money is crucial. If hiring a babysitter so you can return to school means you’ll get promoted and make more money, then do it.

When you’re the sole breadwinner, you have all the more reason to protect your income against disaster. Most experts recommend carrying life insurance equal to six to ten times your salary.

You should also ensure that you have enough disability insurance either through your employer or on your own to protect you and your family in case you can’t work due to an accident or illness.

Scout for tax breaks

Parents who file as head of household usually pay a lower tax rate and are entitled to a higher standard deduction than single taxpayers and married couples filing separately. Parents may also be able to take a an exemption for each qualifying child, plus a tax credit for each child younger than 17 at the end of the year.

If your kids are in day care so you can work, you’re entitled to a dependent-care credit But if you can contribute to a flexible spending account, in which you may set aside pretax dollars for child care, you’re probably better off using the FSA.

Worried your child-support payments will bite back at tax time? Don’t be. Whereas alimony—a relative rarity these days—counts as taxable income, child support escapes liability.

Other Things to Consider:

• Take your lunch and snacks to work instead of eating out.

• Buy in bulk at the supermarket and use coupons.

• Entertain at home instead of going out to a restaurant.

• Start saving regularly for your children’s education by saving money from every paycheck. If your company or bank has an automatic savings plan, sign up.

• Pay off your credit cards each month to avoid interest charges on unpaid balances.

• Be sure you either update or create a new will. One of the most important items to include is naming a guardian for your children. If you do not name a guardian, a judge will appoint one and it may not be someone you would have chosen.

• Explore investments, retirement, and financial planning with a reliable, licensed advisor.

• See a credit counselor if you need help. Most communities offer counselors, low-cost legal clinics, and financial advisors who can help you plan for your present as well as future financial needs.