Working mothers need to get smart about their finances to keep the mothership sailing. Here are some suggestions on how to go about it. Care to read?
Working mothers work round the clock, they’re up on their toes from dawn to dusk. Apart from caring for their children to having a career, they multi-task everything else in between. However, if there’s one section of the society that is constantly under-appreciated, it is the working mama clan.
Let’s be honest, working mothers juggle one too many things on a daily basis. As a working mommy you sure have a lot on your plate every single day and, sometimes, it is hard to keep everything together. But, if something goes awry with your finances then you’re in for a big nasty surprise.
Additional Reading: 4 Working Women On How They Manage Their Money
Therefore, working mothers need to get smart about their finances in order to keep the mothership sailing. Here are some tips for the working mama:
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Make a list of your expenditure
Listen up, mama. First things first, in order to get your finances in one place you need to first take a look at all your existing expenses. If you have a Home Loan or a Car Loan, perhaps a monthly Credit Card bill, or other expenses, sit down, put a list together and get it all in order. This will help you determine how much you are spending regularly. A good way to start is by taking a look at your Credit Card statement or bank statement.
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Analyse your expenses
Once your list is created you should take a closer look at each of those expenses. Things like EMIs and Credit Card payments always take priority. You should categorise your expenses into ‘absolutely necessary’ and ‘can do without’. This way, you will be able to reduce all the unnecessary expenses that you’ve been spending your hard earned money on. Analysing your expenses will give you a perspective on how to move forward.
Additional Reading: The Fight For Financial Independence: 5 Monthly Expenses To Avoid To Increase Your Savings
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Create budgets
If you think you are over-spending on something in particular, then it will make sense to create a budget for that expense. For example, your grocery shopping can sometimes get out of hand. Yes, we understand that while walking through various aisles at the supermarket, you end up putting unwanted things in your cart. And this can simply pile on and turn into a long shopping bill. Instead, you can create a monthly budget for groceries or shop for the entire month at once. This way you can track your budget and know when you’re overspending.
Additional Reading: How To Become The Rockstar Of Budgeting
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Set up standing instructions for payments
If there’s something that should take utmost priority in your life after your children, let it be your payments. Defaulting on an EMI or on your Credit Card bill has serious repercussions. It affects your Credit Score and your overall credibility for future lending. We know you have a thousand things on your mind every single day. So, you can set up standing instructions to your salary account to ensure all payments are made well within the due date. This way you are free from the headache of making manual payments lest you forget!
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Pick a suitable savings plan
When it comes to savings, you need to choose something that suits you. Don’t commit to something that you can’t keep up with. For instance, a Mutual Fund may not be suitable for someone who is risk averse, simultaneously, investing in NPS isn’t for someone who would like an early withdrawal. So, do your research and learn about the many savings schemes out there and decide which one suits you the best.
Additional Reading: Looking For Investment Options? Try These Small Savings Schemes
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Invest the surplus
If you manage to still have some money left after paying off your monthly bills then you should consider investing that money. You can get an SIP for an amount as small as Rs. 500 to begin with. Investing in Mutual Funds can get you higher returns than a bank’s Fixed Deposit.
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Get Insured
Good health is vital for a working mother. However, we understand that you can’t always be in charge of it. Medical emergencies can drain out your bank balance, hence, you should consider getting a good Health Insurance plan. It will also make sense to have Term Life Insurance if you are a single working mom.
Additional Reading: Crucial Financial Planning Tips For Single Mothers
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Plan for retirement
As a working mother, it is easy to forget planning your own future because you have the responsibility of taking care of your children and other family members. However, you should not shy away from planning your own retirement and saving for yourself. Keep aside a retirement fund and move money into it on a regular basis.
Additional Reading: 8 Simple Ways For Women To Ensure A Worry-free Retirement
As a working mother, you take on gigantic responsibility and your finances shouldn’t hold you back. You need to get smart with your money to ensure that you don’t get into any kind of monetary trouble.
Looking for options to safeguard your finances? You shouldn’t underestimate the humble Fixed Deposit.