For Millennials Moms, motherhood isn’t easy and viewed as considerably tougher as compared to previous generations, more so for working mums. Working mothers don many hats, and their lives are in a state of constant flux, loaded with daily challenges. However, with a bit of careful thinking and planning, financial stress need not be one of those.
Though several millennial working mothers are anxious and stressed, they’re reclaiming control where they can: being proactive and independent, investing independently, mastering the art of the side hustle and building wealth on their own terms.
Basic yet prudent financial planning can assist working mothers by strengthening the financial future of their children. So, on this Mother’s Day, while enjoying your time with your little one and preparing to resume your professional life, here are a few financial planning assignments you need to zero in on:
Budgeting is essential: Budgeting is all about calculating spendings and watching where each rupee is going – a basic toolkit for staying in charge of your money instead of pondering where it went.
Keeping funds handy for an emergency: Having an emergency fund can help a lot. When dealing with real emergencies, the last thing you need is to worry about it is how you’ll pay for it. In case if you struggle with savings, start with a goal of setting aside a nominal amount and then work your way up to a month of expenses, then three, and then build up to 6 months of expenses in this kitty.
Developing a debt payoff plan: Assuming you have debt (loans), then figure out a plan to dispose it since it hinders with wealth creation. Research the best avenues, approach that works best for you, and then implement to a plan.
Investing for the long term: Invest as much as you can and as early as you can. You can begin with your retirement (yes, now!) fund 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 any credit increases that are proposed to you by anyone and decide based on need rather than desire.
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 comparably important and planning for your future security shall guarantee that you do not become a financial burden to your children.
Benefit from government programs and tax benefits: Do your research well and check with your bank for the available programs and tax benefits for parents/girl child etc.