This is a sponsored guest post.
Nowadays, current events seem to work actively against your finances. It may be hard to keep things straight in the midst of flattening the curve, even if you’re one of the lucky ones to keep your job.
It doesn’t matter if you’re raking in a full paycheck or dealing with a portion of your usual pay, some financial advice always makes sense. Here are three cardinal rules any mom should follow no matter what comes your way.
1. Follow a Budget
It doesn’t matter what you or your partner do for a living, every family needs a household budget. It helps keep your expenses on track, so you aren’t spending more than you earn.
Sit down with your finances to see how much money you bring in each month. Then compare it to how much money you typically spend. Go through past statements and receipts to track your spending.
Once you start writing down how cash goes in and out of your accounts, you’ll be able to spot any problem areas that need work.
Unnecessary spending is an easy target for savings, but don’t be afraid to look at fixed expenses to find more cash. Something as simple as changing how you use your washing machine may save big on utilities.
2. Be Prepared for the Unexpected
As a mom, you’re probably already living your life according to this rule. Your purse is full of snacks, wet wipes, and maybe even a first aid kit— just in case.
This “just-in-case” attitude applies to your finances, too. But instead of kid-proofing your bag with must-have items, you need to disaster-proof your budget with an emergency fund.
If you already one, that’s great. Work on padding out this account until you have between three to six months’ worth of expenses in it.
If you don’t have one, go back to the budgeting drawing board to see how you can set aside more cash in savings.
What happens if your emergency arrives before you saved up enough? Consider online installment loans direct lenders like MoneyKey that offer a quick and convenient way to get the cash you need in an emergency.
Online installment loans may work as a backup in case your savings ever fall flat. To see if installment loans are the right fit for your needs, check out Moneykey.com/installment-loans-online/ for more info.
3. Think About the Future
Your kids may be little now, but one day, they’ll be all grown up, and it’ll happen sooner than you think. Eventually, they’ll go off to college, move out, and start a family of their own — which means you’ll be an empty-nester who’s that much closer to retirement.
It’s important to keep these eventualities at the back of your mind. Someone is going to have to finance their education and your retirement, after all.
These are both big goals to reach on your own, so spend some time researching a 529 plan and retirement savings like a 401(k) or Roth IRA. These tax-advantaged savings accounts make it easier to hit your goals, especially if your employer matches your contributions.
What do these tips have in common? Mindfulness. If you run your household’s finances without conscious thought, you might accidentally overspend. By deliberately thinking about your money, you’ll be in a better place to make purposeful decisions that set you and your family up for success.