Financial experts say that if we take some time to think before taking any decision on money then we can live a financially healthier life. In one word, it is financial self-care. In this post you will learn 5 financial self-care tips for moms.
Megan Ford, who is a subject-matter-expert, clearly states that just like our overall health is attached to our physical, social, and emotional needs; our finances need attention and care too. It is the place of birth of financial self-care.
“Financial Self-care is not an expense, It’s an investment.”
Why do moms need to practice financial self-care?
When you are having a family, money worries are a genuine cause for you. The money worry can cause anxiety, family-tension, stress, and even divorce.
This is one of the biggest problem in our society. We have made a world where words like ‘money’ and ‘personal finance’ are like a taboo. This is the reason why in this modern world, women especially moms have some needs for financial self-care tips.
How can moms take financial care of themselves?
In this article, we are giving you 5 recommendations that are ideal as financial self-care tips for moms. Have a look at the 5 recommendations:
1. Concentrate on creating a realistic budget
Concentrate on creating a realistic budget with having a track on your expenses and you will know how to manage your income and expenses. This is the first step of proceeding towards financial self-care.
The important point is you have to create your budget by making a good calculation on your income.
2. Start a ‘Savings Account’
Veteran US finance experts say nearly 70% to 80% of Americans have live a paycheck-to-paycheck life.
This is the reason for having a savings account with at least 6 months savings. Well, it is a known fact that it may look like an impossible task for moms to save such a huge amount (At least 6 months savings). Believe me, this kind of savings has become important now more than ever.
3. Consider various ways to pay back your debts
You will have a large amount of debt if you neglect to take financial self-care. Debt only brings stress that can ruin your family life and you will gradually lose your focus on things of necessity.
So, make it one of your financial self-care agenda that you will pay off all your debts gradually and from now on will not mount up any debt.
If you have taken out one or multiple debts, you may think about using several ways to repay your multiple debts.
A. Debt consolidation program:
The debt consolidation program will be ideal for you if you have multiple debts. The program will combine your multiple debts into a single payment. The benefit of the debt consolidation program is your single monthly payment will be lower than before. The interest rate will be lower too.
Credit counseling organizations usually offer a debt consolidation program.
B. Debt settlement program:
With the debt settlement program, the creditor will ask you to pay off the debt by giving a lump sum amount to the creditor and a part of the amount will be forgiven. The benefit of availing the debt settlement program is you can get relief from your debt by paying 10% to 50% of your unpaid amount. You will get relief from making monthly payments and from late fees and penalties as well.
It is better to opt for the debt settlement program than keeping an unpaid debt and later being sued by the creditors.
Like the unsecured loan payment ways that are described above, if you want to eliminate payday loan debt you can take help too from professional payday loan settlement organizations.
4. Invest In Your retirement
No matter currently what is your age, start saving for retirement schemes. Because nothing is more pathetic than struggling financially at an old age. So, start making your necessary preparation and invest in retirement schemes.
Take a look at what you can have as your retirement option:
A. 401(k) account:
The 401(k) account can be your likely retirement option if you are working in an office. The facility you can get by using the 401(k) is you can save and invest in your own retirement savings account.
Apart from it, in 401(K) your employer too can contribute to your retirement savings. Thus for every person who works in an office, they primarily choose to save their retirement money in 401(K).
B. 403(b) account:
Like the 401(k) plan which is dedicated to office employees, you can choose the 403(b) plan if you work in school, religious institutions, health department, etc.
The 403(b) account has more or less the same work procedure as the 401(k) works.
C. IRA account:
The IRA account or Individual Retirement Account will be a good option for you to save for retirement. The IRA account will allow you to save for your retirement on a tax-free basis.
So, as a mom to spend your post-retirement life in a tension-free manner you can choose anyone or any two ways to save your retirement-purpose money.
5. Money Mindset
A. Positive thinking about finance:
It is of utmost necessary to think about your finances with a positive mindset. A person who has a positive mindset can only create intelligent financial plans. Otherwise, in a negative mindset you will only think about spending your money wastefully.
B. Make a note on your financial goals:
You cannot always remember your priority things, your second important things in life, etc. That is why; making a note on the priority of your financial goals is very necessary.
In the note, you may write about some charity contribution too. For example you may write, a certain portion of your monthly income, you will donate to charity or church, etc.
C. Make a routine on finance:
Likewise, a health instructor gives us a daily routine on physical exercise to keep our body fit. You have to create a routine on finance as well. The routine will tell you about your weekly and monthly spending plans. It is a good financial self-care tip for moms.
These are the 5 good and key financial self-care tips for women.
Many moms have certainly started thinking about how they can include these financial self-care tips in their life. No doubt, at first making the inclusion of so many changes in life is difficult. But keep patience, be positive, and proceed gradually towards adopting these financial self-care tips. As a mom of kids, you will reap the benefit of these tips in the future.
Author
Meet Catherine!
Catherine Burke is a financial writer for online payday loan consolidation. She provides information on successful cash loans and payday loan consolidation to help people get over a difficult patch. She lives in Kansas and has earned a frame in the matter of payday loans.
www.onlinepaydayloanconsolidation.com
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