If you’re worried about your financial future after taking time off from work to raise a child, don’t be! You just need to adjust your expectations and create a plan for how you’ll achieve your financial goals faster. Here are seven ways that young moms can do just that.
The most basic way to achieve your financial goals is by saving money. The simplest way to get started is with a rainy day fund of $1,000 or $2,000 in an emergency account that you can access if needed (but won’t use on frivolous purchases). For this, you’ll have to cut down on spending, which can be challenging for new moms. One way to do this is by cutting back on eating out and limiting unnecessary baby expenses.
Another great way to save money and increase your net worth is by investing in retirement accounts like 401(k)s or IRAs (individual retirement accounts). These two types of accounts allow savers tax advantages as long as they follow specific rules when making contributions and withdrawals; however, there are other ways to invest as well—and these options may be better suited for young families who need flexibility over their investments’ growth potential than what standard retirement plans offer them.
Paying off your debt aggressively is the most integral part of your financial plan. You’re already in a very tough situation, so it’s critical that you attack your debt as fast as possible and get out of it quickly. Here are some tips to help you pay off debt faster:
- Pay off the highest interest rate first. The longer you stay in debt, the more money goes toward interest payments instead of principal reduction. Focus on paying down the loans with higher interest rates first (like credit cards) because they cost more to carry around than lower-interest loans such as student loans or mortgages.
- Start with one card at a time until it’s paid off before moving on to another one. This way, all of your available money goes toward paying down debts instead of adding more onto them by using multiple cards simultaneously — which can be tempting when things get tight financially!
While working traditional jobs is still a great way to earn money, you have options for other sources of income. Some ideas include:
- Finding a side hustle. Whether it’s babysitting for neighbors in addition to your day job or selling things you don’t need on eBay, side hustles are a great way to make extra money quickly. Finding one that pays well and doesn’t interfere with your primary work schedule (or even allows you the time to pursue it) is critical.
- Using your skills and talents with what’s available around you. Even if there aren’t jobs available in your field right now, chances are that there are other people out there who could benefit from what you do best—and they’re often willing to pay handsomely if they know how talented an employee they can get out of it.
If these aren’t enough options for earning more money quickly, consider taking on freelance work or starting up an online business—especially if this is something that interests you on top of being able to help make ends meet!
Negotiation is a good thing. Negotiation is how we get things done. But negotiating with your spouse about paying down debt or growing savings can be tricky, especially if you’re both young and have different ideas about money.
When it comes to saving and investing, there are two main things you should ask yourself:
- What’s my “why”? That is, why do I want to save money? For example, do I want to buy a house or pay for college? If so, we’d recommend that you focus on specific savings goals to be achieved in the short term (say six months).
- How much am I willing to sacrifice today to reach my goal tomorrow? Some people might prefer a longer-term investment plan with smaller returns over a shorter-term one with more significant returns—but others may think differently and vice versa. Having an honest discussion about these issues will help each person understand their partner’s perspective better so they can make plans together that work for both of them!
Sometimes, you just need to face the facts: Your rent or mortgage is too damn high. If you’re in this situation, it’s worth considering whether it would make more sense to move somewhere cheaper or even downsize your living space.
If you are looking to downsize, consider using your home as an asset and using it to get cash flow until it is paid off. You can do this by either taking out a reverse mortgage or selling your home and moving somewhere where the cost of living is lower. Not sure whether a reverse mortgage is right for you? Check out reverse mortgage reviews online to understand how it works and whether it is right for you.
Think about where else would be affordable for me. Consider your current lifestyle; how often do I travel back home? Is there anything that would make me happier if I moved closer to family or friends? Do I really need all the ample space when we currently only use half of it? Can I rent out one room while having guests over instead of renting more expensive hotel rooms when traveling on business trips – this way, we’re saving money while still being able to enjoy ourselves!
Young Moms must be intentional about setting goals and keeping track of progress. If you have young kids, these tips can help you reach your goal faster!