When we are looking for the familiar and financial balance, it seems that we resort automatically to the famous phrases that all our mothers have told us to make the money: “save every peso”, “take care of your money”, “buy only what is necessary “, Etc., or that we remember the feats that they were able to do to feed the family, send us to school, work, take the house and, if that was not enough, afford to indulge us with gifts and so on.
However, the moms were not born knowing everything, and many times they find themselves in difficulties to deal with all those responsibilities while they manage and, sometimes, they even generate the money. In addition, the world is now advancing by leaps and bounds: gender stereotypes, the roles of men and women, and the way we move and manage our money are also changing, resulting in little functional follow the advice of our mothers or grandmothers, who lived in another reality very different from ours. Therefore, this article aims to help modern moms with some personal finance tips that could be very useful:
1. Try to achieve economic independence
Whether you are a single mother or not, think that securing and protecting the financial future of your children depends on you, do not delegate that responsibility to your partner or your parents. At any time, circumstances can change and an illness, death or divorce can alter the course of things.
To start taking control of your family’s finances, you must first start by having good personal financial habits:
- Educate yourself by reading about personal finances a couple of hours a week and put into practice everything you learn. We recommend you read 6 financial habits for women.
- Seek to progress in your professional career or increase your income through extra activities. Fiverr, Uber or Airbnb are good options for additional income.
2. Have control over your money and your expenses
Perhaps the most complicated thing is to have total control of the money and the expenses you make personally, at home and in your children.
Start by making a list of all the expenses you do monthly and prepare a budget in which you determine the amount you will allocate to each expense per month. Do not exceed the budget you assign to each expense and do not spend all your income, it is advisable that within your budget you also include savings funds for emergencies, retirement, and a fund for the education of your children, etc.
Finerio is the first free personal finance application with which you can have total control of your money from one place and wherever you are. Finerio allows you to create a personalized budget that automatically tracks your expenses by linking your bank accounts and obtaining your financial information, saving you the work of manually writing everything in Excel tables or in notes.
With Finerio you can keep all your money in order and identify unnecessary expenses that may be damaging your pocket and you must eliminate or cut back to save.
3. Invest your money
Why invest? The simplest and most striking reason is to not have to work for the rest of your life.
If you already have savings, the best thing you can do is remove them from under the mattress, where your grandmother kept it, and invest that money so that it does not lose its value over time, due to inflation. Investing your money will allow you to generate returns without having to move a finger. Investigate different types of investments and try to understand in depth how the instruments that most interest you work.
Do not make hasty decisions and start with small, safe and highly diversified investments. Currently there are already different investment funds that generate more returns than banks and where you can start with amounts of 1,000 pesos, an example is the government CETES, where even your young children can have their investment fund. Remember that saving for the future of your children and teaching them the importance of saving and investing is an important part of being a mom in the modern world. In Mexico there are different education insurance or savings funds where you can ensure the educational future of your child (Seguros Monterrey, GNP, Mapfre, Metlife, etc.)