Hey, busy mama! Take a second to slow down… this is a reminder to prioritize yourself along with that beautiful family of yours. You’re already on your way to financial prosperity. I’m Rebecca Stewart, fellow Cincinnati mom and Northwestern Mutual financial advisor, here with 5 financial tips for moms on how to make that happen!
As moms, we rarely get the chance to stop and breathe… let alone prioritize what we need to do with finances beyond diapers, daycare, and daily life!
Yet, keeping on top of our finances – and planning for the future – is one of those things we must do for our family. Luckily, I’m part of a group of financial advisors who frequently work with families concerned with getting out of debt, saving enough money for their kids’ college, and having enough money put away for retirement.
We looked at some of the main questions and topics that arise after becoming mothers and came up with these initial five tips (that you can totally handle) for moving to financial security.
- Stay conscious of your cash flow
With a new child comes new expenses. Whew, we already know that, right? A baby shower can only cover so much… and then the real expenses start.
Between childcare, toys, and diapers, costs add up quickly. Your emergency savings is probably the most important thing you can start to focus on. Having three to six months’ worth of fixed expenses for you and your family helps ensure that any life-altering event will not foil your goal of financial security.
If you are carrying debt, create a plan to manage those student loans, credit cards, and mortgage payments. Following the 60/20/20 rule goes a long way when managing cashflow – fixed expenses should be 60%, savings 20%, and spending 20%. Being conscious of your cashflow allows you to be more diligent with daily spending.
- Build your savings muscle
After you’ve achieved your emergency savings goal of covering three to six months of expenses, what are you saving for now? Is it a new home for your family or that Disney vacation you’ve been promising for years? How about your kids’ college education?
Splitting your savings into different types of accounts can be helpful. Perhaps you only have five years to save, or maybe you have a couple decades. It can be overwhelming to know exactly what the best option is for your family to hit its goals.
Don’t worry! Conversations like these usually arise at the introductory meeting with a financial advisor, as well as annually when reviewing and updating your goals. They can help you navigate the best way to save based on where you are at today.
- Take your HR coworker to lunch
More employers are offering benefits for mothers, including maternity leave (paid or unpaid) or health care support before, during, and after childbirth.
Understanding exactly what those benefits are can save you money in the long run—and help you avoid expenses you would not have known otherwise. Between life insurance, long-term disability, loan forgiveness, and retirement matching plans, benefits through your employer can go a long way in making your experience as a mother easier.
- Utilize your “village” for more resources
I’m sure you’ve heard the saying, “It takes a village.” Well, that village doesn’t just involve your closest friends and family; it also includes your doctor, hairdresser, nail tech, personal trainer, and you can probably guess what’s next… financial advisor!
When we start to think about retirement, ponder these questions… at what age will you be when you have the choice to wake up and decide if you want to go to work, and where will you be living?
Between your employer retirement plan, a Roth IRA, and other tax savvy accounts, a financial advisor helps create a plan that ensures smart investing, sound tax management, and a future you can look forward to.
- Your legacy will live on for your kids and grandkids
Along with everything else stated, the best way to ensure your family’s future is to plan for it – ASAP.
Many moms are hesitant to invest because they are completely bogged down trying to afford dance lessons, t-ball practice, school supplies, and all the nickel-and-dime moments that come with kids. Remember, however small, putting something aside adds up over the long term.
And, small matters! Regular, meaningful contributions over the course of a long time will do wonders for your retirement plan and legacy. It is always in your and your family’s best interest to be in the market as opposed to waiting on the market. And, it’s not just your family; it’s for you, too.
Slowing down to make intentional decisions around your financial health puts your family in a sound place where you can look forward to all your future tomorrows. Establish and follow a plan to lead you and your family on the path to prosperity.
Finally, be sure to connect with a financial advisor, a trusted partner who can meet you where you’re at, challenge you to think about where you want to be, and be a part of the progress you make to get there.
Thank you to Northwestern Mutual for sharing these strategies of how to get on our way to financial peace of mind. This post was written by fellow mama, Rebecca Stewart, and she is your go-to gal for your financial wellness! She is a Cincinnati-based mom and a financial advisor for Northwestern Mutual. Rebecca combines her psychology and financial backgrounds with real-life experience of what is like to have kids and raise a family. She can be reached at (330) 998-0141.
