For millennial mothers, motherhood is not easy and is considered much more difficult than previous generations, more so for working mothers. Working mothers wear many hats and their lives are constantly changing, filled with daily challenges. However, with a little thought and planning, financial stress doesn’t have to be one of them.
Although many millennial working mothers are anxious and stressed, they take back control where they can: be proactive and independent, invest independently, master the art of side-hustle and create wealth according to their own terms.
Basic yet prudent financial planning can help working mothers by strengthening their children’s financial future. So this Mother’s Day, while enjoying your time with your little one and getting ready to get back to your professional life, here are some financial planning missions to focus on:
Budgeting is essential: Budgeting is all about calculating expenses and watching where every rupee goes – a basic toolkit for keeping control of your money instead of wondering where it went.
Keep funds on hand for emergencies: Having an emergency fund can be very useful. When dealing with real emergencies, the last thing you need to worry about is how you’re going to pay. In case you’re having trouble saving, start with a set aside goal of a nominal amount, then work your way up to one month of spending, then three, then accumulate up to 6 months of spending in that pool.
Developing a Debt Repayment Plan: Assuming you have debt (loans), develop a plan to get rid of it, as it hinders wealth creation. Research the best avenues, the approach that works best for you, then implement a plan.
Invest for the long term: Invest as much as possible and as soon as possible. You can start with your retirement fund (yes, now!) if investing seems too complicated. Don’t leave free money on the table.
Building a Credit Score: Absolutely imperative to take care of your bills on time every time. Period! Carefully evaluate all credit enhancements offered to you by anyone and decide based on need rather than want.
Put on your breathing mask first: remember to plan for your long-term future (old age) and alongside your child’s education fund. You are of comparable importance and planning for your future security will ensure that you do not become a financial burden on your children.
Benefit from government programs and tax advantages: do your research well and check with your bank for available programs and tax advantages for parents/daughters, etc.
Get Adequate Coverage for You and Your Family: Whether you’re a working single mom or not, make sure you have adequate health and life insurance. Your employer may offer group coverage, but for maximum benefit during a medical emergency, it’s prudent to have your own personal health coverage. Term life insurance ensures that your family’s financial needs are taken care of in the event of your premature death.
Besides all the savvy financial moves mentioned earlier, set aside money for your recreational exercises. Remember to make room to enjoy what you earn. Treat yourself to that new book, a day at the spa or an evening with friends.
Keep in mind that a healthy mind is the key to success and for this it is also essential to relax. However, this should be done after firming up your financial plan and other essential expenses.
Follow these steps and have a Happy Mother’s Day every day of the year!!
Warning: The views expressed in the above article are those of the authors and do not necessarily represent or reflect the views of this publishing house. Unless otherwise indicated, the author writes in a personal capacity. They are not intended and should not be taken to represent the official ideas, attitudes or policies of any agency or institution.