As a mother, you have a number of responsibilities each and every day. You are caring for all of the children in your home, keeping the house clean, washing, drying, folding and putting away everyone’s laundry, cooking dinner and trying to make good financial decisions all along the way. Your plate often feels overloaded and adding financial strain to that can become overwhelming, but having some guidance for financial decisions can help us be successful.
Here are a few key financial tips for mamas.
- Have A Will And Life Insurance
Something that often comes up on Facebook chats is life insurance and what happens to kids if life happens and our children are left without a mother. Unforeseen things are unfortunate, but if you are prepared it won’t leave your family in a financial mess. Having a will in order is important because in those days after death, knowing what the person wanted takes some of the pressure of even more decision making off of those left behind. Life insurance will help cover any expenses related to your death if that is what is to happen. While this is not what anyone wants to hear, it is important to be prepared for the unexpected and for under £10 a month, you can make a huge difference to the family you leave behind.
- Take Out Only Low-Interest Loans
When it comes time to buy a car, pay for student loans, or purchase a house, only accept low-interest loans. If you take a high-interest loan, you might as well throw money down the drain because you will be paying more than you need to for your new item or degree.
Take student loans as an example. As a 30 something mother you may still have student loan debt. Or after the kids are born, you might want to retrain and take on new student debt. If you are fortunate enough to have used private student loans to fund your college degree then refinancing them is an option to lower your monthly payments. By refinancing these loans you lower the interest rate and extend the period of time you have to pay it back. Consider doing this with all of your loans if you need to lower your monthly expenses.
- Max Out Your Retirement
As soon as you are able to max out your retirement, do it. Your future self will thank you later because the earlier you put money into your 401(k), the longer it has to build interest and grow. Some people suggest that you should be putting aside 15-20% of your income each paycheck to your retirement fund and if you are lucky your company might match this amount for you. If you put this much aside each month, you will be prepared when the time for retirement comes. When you’re just about earning enough to get by 15 – 20% might seem insurmountable, but every little helps.
- Be Prepared For An Aging Parent
The first and last options on this list are not things anyone wants to think about, but they are simply realistic and necessary to consider when trying to save money in your 30s. If you are lucky enough to still have living parents, you need to be ready in the near future to help care for them if they need assistance. Look up local nursing homes and know what financial assistance they will potentially need so you can be prepared to help if necessary. The more prepared you are for these types of situations, the better off your entire family will be and the less stress you will have to deal with.
- Pay Off Debt
Paying off debt provides you with financial freedom that you cannot otherwise experience. Debt is a dark cloud that will follow you around and until you have it paid off, you will not be able to make decisions about your finances because the lending companies will be in control of a chunk of your money. The longer it takes you to pay off your debt, the more you will pay in interest fees. Focus all of your attention on paying down your debt as soon as possible and then you will have the freedom to do the things you really want to do with your money.