5 Essential Tips to Plan Your Financial Future
Mothers love, responsible and strong with their children, however, they often sacrifice themselves for them. According to a survey of Solve your Debt, 16% of its users moms become indebted because of a foreign problem, mainly for helping their children.
That is why planning your financial future is super important. It doesn’t matter if you are a working mother or a housewife, in both cases, you must be alert enough to keep your finances daily.
Therefore, this article aims to help moms with some personal finance tips that could be very useful:
- Eliminate ant spending
If you want to commit to your financial future you will have to prioritize, if you want to have money for your retirement and how you want to spend it, without money or maybe make the trip of your dreams, and if you can take care of your health.
An ant expense or unnecessary expense is one that seems small, but in the long term it adds up to a considerable amount. For example, spend on bottled water, cookies, chips, chelas from time to time, commissions for not paying on time, etc. These add up to more than 5 thousand usd a year. How much do you have in your emergency fund?
Therefore, it is very important that you set an expense limit of how much you can spend according to your income. Then make a record of all your expenses, yes, and ALL your expenses up to tips or donations. And finally keep track of your budget.
This will help you easily identify when you are spending more than you earn, and you will be able to identify unnecessary expenses, which will not allow you to reach your financial goals.
- Save at least 10% of your income
One aspect that will help you spend less is that when you receive your salary or any other income, the first thing you should do is set aside 10% and deposits it in a special account for savings can be investment or you’re Afore.
You can have different accounts, one to create an emergency fund that is equivalent to 3 or 6 months of your essential expenses, another one for entertainment, another one for dreams for you or your children, and another one for your retirement.
- Save for your retirement
One of the most common mistakes of mothers and also of fathers is not thinking about their own financial future. They think their children will support them, but it turns out that wages may not be enough to meet their needs and those of their parents. So many times parents also suffer from these limitations.
Ensuring a dignified old age not only removes stress at a stage where you need it most, but avoids economic pressures on other family members. The main one is that you will have independence.
You may be interested: How much money do you need to save for when you are old?
- Avoid debt and expensive loans
On many occasions we go to credits to be able to pay little by little something we want, however, if we exceed our ability to pay, we can incur large debts, which affects your credit history.
On the other hand, one of the main mistakes is not to compare credits and choose an expensive credit. And that one of the financial products that most afflict women is credit cards. Most of the countries, credit cards have the highest interest rates in the market, some exceed 110%.
It is important to be aware of your credit payments, and although you can always request personal loans to obtain liquidity, you must act responsibly.
- Invest your savings
Once you manage to save, do not forget that you can invest the money you save in different types of instruments that can generate juicy interests.
Do not make hasty decisions and start with small, safe and highly diversified investments. Currently there are different investment funds that generate more returns than banks and where you can start with amounts of 100 usd, an example are the government CETES, where even your young children can have their investment fund.