Are you a mom looking for some money management tips? From college debts to unexpected expenses and the constant balancing act of trying to spend wisely in an uncertain economy, it seems as though there are an awful lot of reasons to feel worried about money. But money management doesn’t have to be too taxing.
If you want to be the sort of mom who is totally on top of you family’s finance, check out my top 10 money management tips.
1) Track Monthly Income and Expenses
One of the best money management tips is to track your monthly income and expenses. To manage your finances effectively, you have to know what money you have coming in and going out of your account each month. It can be all too easy to let your spending get out of control if you don’t adjust your income to account for bills.
But, putting pen to paper to make a note of every little expense isn’t sustainable, which is something that I figured out pretty quickly. So, I found a money tracking app that links to my bank accounts and automatically tracks my income, bills, mortgage, investment portfolio, and more for me.
2) Create Boundaries for Your Spending
Another great money management tip is creating boundaries for your spending. Once you have a better idea of what money you have to work with, take some time to break your spending down into categories. I used a spending analyzer to do this and opted to set categories for things like groceries, travel, and downtime, but you can choose any that makes sense to you.
Then, set a budget for each category. Trust me when I say that it will make you much more mindful of how much you spend and how you spend it.
3) Invest in Structured Settlements
If you want to make more money without taking on more work, consider investing in low-risk, high-yield investment opportunities like structured settlements.
You can get cash for structured settlement investments over several years, either in the form of a life contingent annuity or a shorter-term annuity. A regular cash injection like that could help keep your finances looking healthy, although you should never rely too heavily on them.
Just make sure you find a trusted financial planner with a reputation for selling structured settlements and other investment opportunities legitimately.
4) Set a Budget, Even Without a Fixed Income
Speaking of the pandemic, the economic crisis that it brought with it left a lot of millennials without permanent, full-time work. So, many of us turned to freelance work and side hustles, which means that income can change from month to month.
Still, you should set a monthly budget, even if you don’t have a fixed income. Remember that anything you don’t end up spending during a more lucrative month can go straight into your savings.
5) Make Charitable Donations
It might sound counterproductive to give money away. We are trying to save, after all. But, the fact is that millennials are a charitable generation. 74% of us donated money during the pandemic, despite the financial hardship that hit us all!
So, aim to keep a little money aside for causes that are close to your heart. I’ve found it to be good for the soul, plus it forces you to be more thoughtful of how you spend.
6) Use Credit Cards Wisely
I don’t know what I’d do without my credit cards. They help me to better manage my money, but I’ve had to learn to use them wisely.
My tracking tool comes in handy here, giving me an insight into how much I’m spending and when I need to pull back. I also always make sure to pay off my credit card by the due date to avoid late fees and pay off more than the minimum if I can’t clear it all at once.
7) Opt for a Low-Interest Credit Card
Shopping around for a credit card with a low interest rate can help you avoid unnecessary costs, which is particularly useful if it’s your first card.
Trying to find the right card for your needs can be stressful. But, as a general rule, look for 0% APR for new joiners and no annual fee, and you’ll find it far easier to manage your account without having to worry that you’re losing money for no good reason.
8) Set Up An Emergency Fund
Remember when I mentioned putting any leftover cash at the end of the month into your savings? That and any other money you manage to put aside can act as an all-important emergency fund.
From breaking appliances to medical emergencies, you just never know what might be right around the corner. So, ensure you’re prepared no matter what. And, if you can, add a little bit to your financial safety net each payday. You’ll thank yourself in the long run.
9) Ask for Help
Even with a long list of useful advice, managing money isn’t easy. When you have kids, too, you want to feel as though you can give them everything they want and need, so it can get overwhelming if things feel out of control.
But, the good news is that a lot of the people around you have been in the same boat, and they found a way to make it work. Reach out to friends, family, coworkers, or anyone else in your life that you trust. You never know what handy tips they might have up their sleeves.
10) Use Technology and Time to Your Advantage
Last but not least, using technology and time to your advantage is a great money management tip. There are so many money management apps these days, and I’ve found some of them to be invaluable. Whether you want to track your spending, stay on top of your expenses, or need more motivation to put money away, there will be an app that suits your situation.
Combine these techy financial assistants with long-term savings plans, and you won’t just manage your money in the here and now – you’ll accrue money that will help to support your family far into the future.
I hope these money management tips will help motivate you and give you a head start on your savings.
About Kathy:
Kathy Manson has been working in the finance industry for over 20 years. She specialized in structured settlement and annuities. She is associated with many online publications and websites where she regularly blogs about the latest financial trends. Twitter @ structuredfund.