How to Take Control of your Finances as a Stay-at-Home Mom
Staying at home with your children is as noble as it is frightening. Protecting your financial future is indeed more challenging when you have your children’s future to look out for as well. For some, it is a temporary choice. For others, however, it can be difficult to re-enter the workforce after years of staying at home. This is why it is important to have a family financial plan before making this decision. If you do have to stay at home, however, here are useful tips to help you through.
1.) Watch your spending by setting up a budget
You may have heard this tip before. However, it is a cliché because its importance cannot be stressed often enough. Creating a budget allows you to monitor your cash flow. This also gives you an idea how much you are spending for your needs and wants. Knowing the difference between the two can create a big difference to your financial future. There are budget apps such as Level Money, Mint.com, and YANB that you can take advantage of.
More importantly, sticking to a budget is the key to saving. You can monitor your spending as much as you want, but if you cannot stick to a budget and save the amount of money you have set out to save, this method won’t make much of a difference. In other words, create a budget and develop your self-discipline to stick to it.
2.) Be on top of your finances
This means you have to know your credit score as well as your insurance policy, if you already have one. As much as possible, you want to keep your credit score in good shape not only because you need it to secure a low-interest rate loan. It is also important in making sure you stay on top of your payments and that you have no outstanding debts to pay.
Knowing your insurance policy, on the other hand, is a good way to ensure you are well covered in case of emergencies. The fact that you are a stay-at-home mom may be extra daunting if you do not have a good insurance to pay for medical expenses should there be a need for it. Being on top of possible expenses not only saves you money in the long run. It also gives you peace of mind, which is priceless in the grand scheme of things.
3.) Don’t wait any longer. Start saving now.
It may be hard for one income households to save, but it is highly valuable. In fact, it will benefit you to start thinking saving as non-negotiable. With the state of the economy at the moment, you do not want to risk waiting for the sole income earner to lose the job before thinking about saving money. Many people fall into big debts with this way of thinking. Have a healthy relationship with money right now and start saving no matter how little it is.
Being a stay-at-home mom is one of the scariest decisions to make for many reasons. However, it is the financial dependency that comes with it that may be a problem in the long run if you do not start becoming proactive now. Follow these tips and find peace of mind so you can enjoy watching your children grow up.