Whether you are a stay-at-home or a working mum, you must want what’s best for your family. Although it’s typical of you mums to put other family members first, particularly your partner and children, it’s wise for you to prioritise yourself and your financial matters in the same way that you prioritise your family. You never know what the future holds, and you’ll eventually have to manage your own money. Whether you have financial goals or not (which you should), you must begin as conveniently as possible.
There are numerous ways to invest and save money, and as a starting point for mothers who want to get started, here are six steps that you should be aware of.
6 Steps to Assist Mums in Investment and Saving
1. Determine Your Investment Goal
Before you do anything else, you must understand why you are investing.Only then can you determine which investment/saving strategy is best for you.This could range from wanting to have enough money for retirement, a vacation, a bucket list, a down payment on a house, or even a college fund for your children.
You could think of this step as determining your main reason for wanting to have that set amount of money at the end.When you know why you’re growing your money, you’ll be more driven and confident in your abilities to cross the finish line.
2. Make A Budget For Your Household
Once you’ve determined why you’re investing, you’ll need to evaluate your household budget.Take into account whether you’re single, a stay-at-home mom, or have a partner who splits the expenses with you.
You’ll be able to figure out how much you can commit monthly after you’ve calculated the household budget, which covers bills, groceries, loan repayments, and so on.For example, after deducting all monthly expenses, you’re left with RM500 per month for investment.
3. Figure Out The Amount and Length of Time
This is about determining how much value you’ll need to attain your financial goal, as well as when you’ll need it.You may want to save for five years, 10 years, 20 years, or even 30 years, depending on your aims.That’s why it’s common to hear people say, “Start investing or saving as soon as you can.”There are numerous legitimate investments and savings accounts to consider in Malaysia.
Employees Provident Fund (EPF), Amanah Saham Bumiputera (ASB) / Amanah Saham Malaysia (ASM), high-yield savings account, money market or cash management fund, and bonds are among the five low-risk investments you may consider.
4. Review and Negotiate Investment and Savings Plans
There are numerous savings and investment plans available, some of which also fall under the category of insurance.So, go through as many as you can to find one that fits your goal, time frame, and budget.
Make sure to get your plans from reputable sources and weigh the pros and cons of each plan you are introduced to.Ask as many questions as you need to understand where you’re putting your hard-earned money.
5. Pick The Right Investment Account
After you’ve gone over the plans, it’s time to make a decision.Remember that once you make a decision, there’s a good chance you won’t be able to change your mind.It will be your long-term investment or saving to help you reach your financial goals.
To assist you in making an informed decision, first, select the best three with significant advantages.Then, carefully consider the three options and compare them side by side to determine which one best fits your needs.
6. Save As Much and As Often As You Can
Consistency is one of the most important factors in ensuring your goal’s success and attainment. Allow yourself no leeway from what you’ve agreed to pay. You’ll find it easier to invest or save money if you’re consistent. Remember that it will all be worth it in the end.
It’s also a good idea to save whenever and wherever you can. Make it a habit to only buy what you and your family require, the necessities, rather than splurging on unnecessary expenditure items that you merely desire.
In summary, as moms, we often put our family's needs first but it's crucial to take care of our own financial future too. These six steps help us do just that: set clear goals, budget wisely, choose the right investments, and stay consistent. By following these steps, we can secure a better future for ourselves and our families. Let's take control of our finances today and build a brighter tomorrow. We've got this!