Managing finances as a mother we know is easier said than done. It involves planning for the present and the future, budgeting household needs, and often juggling work and family life. Efficient financial planning is, therefore, useful for you as you navigate through life’s various stages, whilst also enjoying your role without financial stress.
Here are three key takeaways for you as a mother in managing finances.
Savings and Expense Tracking: The first step to investing is to have a healthy savings rate. For that most mothers usually monitor expenses meticulously. While earlier generations might have been happy just using pencil and paper, today’s technology offers various apps that simplify this task. Use these tools for understanding spending patterns, and insights into your financial habits. Tracking spending allows you to stick to a planned saving pattern which can lead to corpus generation.
Tracking expenses can also be a life skill to teach your children. If learned from a young age this can prevent impulsive spending behaviors later in life.
Planning Passive Income in Work and Career Breaks: As a mother, while juggling work and home priorities, you may have faced or may face some breaks and/or sabbaticals. It’s very important to prepare for periods like these. Planning to fund these times with interest income, consulting income, dividends, or a systematic withdrawal plan (SWP) from an accumulated financial corpus can provide the necessary support. Such proactive planning allows your corpus to grow and ensures passive income during necessary work and career breaks.
Retirement Planning: When you are faced with numerous financial responsibilities from paying off home loans to covering children’s education, it is natural that retirement planning takes a back seat, however, it should not be neglected. Sometimes as a mother, a retirement decision from active work and a consequent reduced income may come sooner than expected. Hence the need for thinking and planning for a retirement corpus is paramount.
Starting early is key. Understanding investing avenues and investing consistently allows your retirement fund to compound over time, making it a dependable source of income in your retirement years.
As this is a very important subject we are intentionally releasing this blog a few days later to steer clear of the marketing noise around Mother’s Day, We request you to share this blog with mothers. We have intentionally kept the blog short and handy for all mothers who are constantly busy juggling multiple items.
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