Last updated on September 5th, 2022 at 08:20 pm
Motherhood has never been an easy job, but it’s significantly more complicated for millennial working moms. Not only do you have to deal with sometimes sleepless nights and long hours of care at home, but you also have to keep up with the ever-changing corporate environment.
The financial security blanket that comes with being in the workforce is essential, especially for mothers. When you’re responsible for yourself and others’ finanacial security, it’s critical to understand the best way to manage your personal finances .
Just having a job or running a business doesn’t mean that your personal finances are all set. You need to be actively involved in investing, saving, and budgeting to ensure peace of mind for the present and the future. Keep reading for some of the best money tips for millennial working moms.
Personal Finance Strategies for Millennial Working Moms
Numbers or dollar almounts alone may not mean much to you when it comes to setting a finanacial goal. For example, setting aside a random amount of money you want to save for emergencies might not be the best way to reach a financial goal. You need to go beyond numbers. As a millennial working mom, or anyone for that matter, you must feel motivated to reach your goal.
For example, you can set a goal like wanting to buy a house. To make it more real to you, you can include the size of the house you want to buy, the style, or the location. These specifics will also help you to settle on an approximate dollar amount needed to reach your goal.
Or, if you have debts to be paid, you can set goals around them–think about aiming to have your debt paid off by a certain date. Or, if that feels overwhelming, set smaller goals, like having a certain dollar amount paid in one year, and another amount in two years, etc.
As more millennial moms are starting side hustles, another great financial goal would be to save enough to start a specific business. Personalize your financial goals according to your situation, and write down step-by-step what you’ll do to acheive them. Then hold yourself accountable.
Take inventory, and cut back on extravagant expenses
For most households, there are three categories of expenses that need to be accounted for. The first is the “essentials.” These are things that can’t be avoided, like utility bills, groceries, rent or mortgage, etc. The second category is a bit more flexible. It includes things that aren’t absolute necessities, but are nice to have and make life more enjoyable–think streaming services, children’s sports or music lessons, eating out, and all those things that make life better, but aren’t what you need for “survival.” The third category is what you spend on things you really don’t need, or splurges.
You cannot avoid spending money on the first category, of course. The second category may include things like buying new toys for the kids, taking a vacation, stops at the coffee shop, and more. While you don’t have to cut back on everything in this category, consider where your spending can be cut back. Instead of a fancy coffee on the way to work every day, why not bring coffee from home? And, do you need all of the streaming services you might be subscribed to? Cut back to the one or two you actually watch.
The third category is where you need to cut back significantly. This includes all the habits like indulging in dinners at expensive restaurants, always buying high-end brands just to “keep up with the Jonese,” and similar expenses where you can easily choose quality, less expensive alternatives.
Take inventory of all these expenses, and now work on eliminating the excess.
Check the weekly ads and shop smart
One more personal finance strategy we suggest for millenial working moms is to check their store weekly ads, and then plan your meals around what’s on sale. You’ll save even more when you combine sales and either printed or digital coupons.
From groceries to drugstore and cleaning items, you can save a lot by checking the weekly ads and stocking up when there’s a sale.
Stick to a budget
Budgeting keeps you organized and within your spending limits. It’s the best way to ensure you don’t overspend on things that aren’t necessary or make impulse purchases. As a working mother, there are several categories you have to spend on but sticking to a budget will help you know where the money’s going.
This doesn’t have to be a complicated task. You can create your budget using a simple journal or notebook, or get a subscription to budgeting software. In the long run, it will be well worth the time it takes to review your finances.
We love how simple this task is with budgeting software. There are so many categories and ways you can budget and organize your monthly income. You might be surprised to see exactly where your money’s really going too!
Investing in the right places
For millennial working moms, investing may seem like a far-fetched concept but it is never too early to start. There are several things you may want to start savings for, such as retirement, emergencies, a college fund, and more. While saving is always smart, you should also consider investing a portion of your income so that you’ll earn more than the few cents a traditional savings account brings in.
For example, there are special investment initiatives for parents with kids who want to save for college. Check with your state, as many are set up by the state and have special tax breaks. There are other investments, like 401Ks you might have at work or Roth IRAs for people saving for retirement. Consult a personal finance expert on what your options are for investing according to your financial goals.
Real estate can also be a good investment option for parents. Discuss your particular needs with an investment specialist, including how much money you have to invest, your financial goals, etc.
Look at your income and benefits
If you are just entering the workforce as a new mom or already have a job, take a look at your salary. Of course, the gross pay is not what you take home as there are taxes to be deducted, as well as insurance and maybe other deductions.
You should have a good handle on the complete package that makes up your compensation. Know what your net pay will be after all deductions, what else are you being offered, the benefits and perks included, and more. One important thing to make sure of is that you get good health insurance.
Without adequate insurance, even a simple injury can leave you with a big hole in your pocket. If your workplace covers the majority of your insurance premium, there is one less thing to worry about. So, when you’re job hunting, be sure to ask about the insurance coverage.
Staying on top of your financial goals by using these personal finance strategies will help save you money and reduce your stress in the long run. Millennial working moms face different challenges than some of their predecessors, but being financially secure allows you to focus on the well-being of your child and yourself. That kind of security and peace is one of the building blocks of a happy and healthy home.
Do you have any other ideas for millennial working moms? Leave us your best money tips.