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12 Steps to Financial Stability for Moms

Guest post by budgeting and life coach, Jessica Wayne

Managing our personal finances can be challenging, especially for busy moms juggling the demands of family, work, carpooling, and personal aspirations. However, achieving financial stability and security is possible and essential for creating a bright future for you and your family.

In this blog post, we will explore practical tips and strategies to help moms take control of their personal finances, build a solid financial foundation, and work towards their financial goals.

A little background story about me and my financial journey: it was April 2020, the start of the COVID-19 pandemic, and my husband just had emergency back surgery, I was furloughed from my nursing job for 4 weeks, and our 3 young boys were home 24/7 doing “virtual learning”.

We found ourselves in a crisis as we needed to get our farm crops planted and we didn’t have the money set aside to hire someone to plant them for us. Since I was off work, I was voted the one to plant our crops. I had never even driven a tractor!

After spending 12+ hours a day in the tractor for a few weeks, I realized that we got ourselves into this situation by not being responsible with our money. We had $100,000 of consumer debt and we needed to pay it off ASAP. I binged everything personal finance related that I could in the tractor, went back to my nursing job, picked up all the overtime I could and we paid off $100,000 of debt in less than 2 years. Now I am teaching others how to manage their money responsibly, pay off debt, and build their savings so they can be financially secure and stable.

12 Steps to creating a solid financial future:

1. Set Clear Financial Goals:

Start by defining your short-term and long-term financial objectives. That might include creating an emergency fund, paying off debt, saving for education, or retirement, and having specific goals gives your financial journey purpose.

2. Create a Budget:

Develop a personalized monthly budget for you and your family. Your budget will be specific to your lifestyle. You need to include your monthly household income, monthly expenses, and savings. A well-structured budget will help you track spending, identify areas for potential savings, and ensure that you allocate funds to your financial goals.

3. Emergency Fund Essentials:

Having an emergency savings fund is crucial to your financial success, even if you are in debt. A starter emergency fund is needed, and then aim to have at least 3-6 months’ worth of living expenses set aside to provide a safety net for unexpected financial challenges.

4. Reduce Debt:

If you have debt, especially high-interest rate debt, it is important to prioritize paying that off. There are 2 main debt payoff methods, the Snowball and Avalanche. You can use one of these two or you can do a combination of the two. Paying off your debt will free up more of your income for savings, investments, and fun!

5. Automate Savings:

Making saving easy by setting up automatic transfers to your savings or investment accounts. This ensures that you consistently contribute to your financial goals.

6. Invest Wisely:

Learn about different investment options, such as stocks, bonds, and retirement accounts. It is never too late or too early to start saving for your retirement!

7. Educate Yourself:

Invest in yourself and your learning by educating yourself by continuously improving your financial literacy and knowledge. Attend workshops, and webinars, take online courses, and listen to podcasts on personal finance to enhance your money management skills.

8. Plan for Retirement:

Don’t neglect your retirement savings. Contribute consistency, and automate your contributions to your retirement accounts. If your employer has a 401K or 403B match make sure you are taking advantage of that. This will help secure your financial future.

9. Insurance Coverage:

Review your insurance policies regularly, I suggest annually. Ensure you have adequate coverage for health, life, and property, protecting your family from unforeseen events. As your family grows, so should your insurance coverage.

10.    Teach Financial Literacy:

Instill good money habits in your children from a young age. If you aren’t teaching them about money management, who is? Teach them about budgeting, saving, and responsible spending so they will be empowered for a lifetime.

11.    Regularly Review and Adjust:

Your lifestyle and circumstances will change, so make sure you are reviewing, assessing, and adjusting your financial situation.

12.    Seek Support:

Don’t hesitate to reach out to a money coach or a trusted family member or friend to help guide you and support you on your financial journey. There’s no need to navigate this journey alone.

As a mom, taking control of your personal finances is a powerful step toward securing your family’s future and achieving your own financial dreams. By setting clear goals, creating a budget, and consistently saving and investing, you can overcome financial challenges and build a stable, prosperous life for yourself and your loved ones. Remember, financial empowerment is within your reach, start your journey to financial freedom today!

To learn more from Jessica and ask her questions, join the FREE webinar hosted by The Playgroup Co. Space is limited, so reserve your spot here.

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