Are you a working woman who is concerned about her financial management? If so, then you need to read this.
An expert once told me, “You are sometimes unaware that you are doing or spending on something that might affect your family’s future.”
Then I said, “Really?” It turned out after awhile that it’s true!
Here, I am going to talk about a few mistakes that too many working women do with their finances. Stop making these 6 financial mistakes that affect your family’s future.
1. Fancy baby stuff
If you are not one of those millionaire moms who can afford all the luxuries in life, then stop splurging for fancy baby stuff. It is understandable that as a mom, you would want to give exciting toys to your baby. We tend to be excited if we have a new baby in the house.
However, if you think about it in the longer run, the fancy stuff won’t help your kid in any way. They will just outgrow those stuffs in little than few months. So, it’s not not worth of an investment.
Instead of buying fancy baby stuff, give him basic toys and put the extra money in a savings account for your kid’s future.
2. Delay in college savings
Another one of the big financial mistakes that affect your kids’ future is delaying saving for their college education. College costs rise every year, and it will become very difficult for you to pay his tuition fees.
If you are lost with how are you going to set-up a college plan for your kids, ask advise from financial consultants or money experts. The earlier you do this, the better. Saving for your kid’s education should be started at their earliest stage in life. You do not want to commit the mistake of ignoring or delaying this opportunity.
3. Underinsure yourself
Another major mistake is related to life insurance. Many working women just don’t buy enough life insurance. As a working woman, stop thinking that your employee life insurance is sufficient. It won’t be enough to secure your child’s or dependent’s future in case something happens to you.
Also, what protection do you have when you leave your employer? Your health benefits will be terminated once you leave the company.
It pays huge benefits to get life insurance which will serve as your income replacement fund just in case something happened. This will secure your kid’s or dependent’s future in every aspect.
4. Trying keeping up with the joneses
As a working woman, if you’re making this mistake, then it is a major red flag that might affect your kid’s or dependent’s future. Trying to keep up a certain lifestyle that is beyond your means just to appear at a certain standard could land you in big troubles. If you’re doing this, then stop doing this because it is one of the major financial mistakes to avoid.
Try to maintain a lifestyle that resonates with your income and save enough money that could help your child or dependent’s in the future. Be a role model also to them by maintaining only the lifestyle your family can afford.
5. Neglecting to make a budget
Budgeting is the most common way to manage your finances. Many people , in general, don’t pay any attention to budgeting. As a result, they can’t save money because of the lack of planning.
If you don’t plan a budget, then you would miss out on educating your child or dependents about this important habit. You also won’t be able to save money for his future and this will be the sad thing. You will be on financial stress come the time you need the funds for their college. If you’re neglecting to make a monthly budget, then it is one of the major financial mistakes to avoid.
6. Neglecting retirement savings
One thing that working women should learn about is investing in an adequate retirement plan. Failing to invest in an adequate retirement plan would result in putting extra pressure on you both mentally and physically. If you don’t invest in a retirement plan, you may end up spending the savings to keep the lights on and food in your fridge.
Also, it will end up that you will depend on your children or dependent for your maintenance and expenses in the future. This is not a very good feeling. And I am not sure if your kids or dependents will like that scenario as well.
To become efficient at handling your finances in a better way, read books, attend seminars, talk to financial consultant or expert, or hire a money coach that will help you will all of this. It is understandable that you are not familiar with all of this. That is why you need to take a step to make your retirement plan an actual policy for you.
Nothing beats the feeling that you can sleep very well at night knowing that no matter happen in the future, you will be protected and you will have a successful life you always dream of.
Takeaways
- The earlier you realized these mistakes, the earlier you can correct your course on handling your money.
- We all wish and do our best for our kid’s and dependent’s future. But we should take action now to avoid money trap.
- Forget your ego and start the lifestyle that only fits your budget. Think about your family’s future and make no deal on impressing other people.
Hassle-free family budget tracking?
