Financial security is essential — especially during our lactating years. Here are tips I'd give to my younger self...
1. Learn to Multiply
You’ve done an amazing job at budgeting. But creating and sticking to a budget requires simple addition and subtraction. Now that you’ve literally multiplied (by having children), you must graduate to multiplying your income.
2. You Have Everything You Need
We have the resources, we just have to tap into our resourcefulness. For example, using cash back credit cards (when paid in full) are great tools to get you in the habit of having your money work for you. You simply pay for purchases with your card, and get monetarily rewarded when the balance is paid in full.
To benefit from cash back credit cards, you must be very organized and always pay the full balance on time.
3. Embrace Your New Financial Role In the Family
The family’s financial health depends on everyone playing a collaborative part. While one member works hard to bring in the money, the other works just as hard to analyze and grow it. This is a very important role as you are in charge of maximizing the worth of the dollar.
Taking on this challenge of financial analyst and empress investment officer will help you gain irreplaceable skills, become your family’s most valuable asset, and support you in building a life you are extremely proud of.
4. Obsess Over Your Numbers
This free app gives you a beautiful snap-shot of your financial health. It’s a visual representation of your credit report which includes your credit score, utilization level, and all open lines of credit. It's easy and super simple design makes learning your numbers more fun.
5. Compliment Each Other’s Financial Goals
Do not be discouraged if you and your King do not have similar financial goals.
Always remember two are better than one. Your different financial situations, needs, life experiences and perspectives are essential ingredients to successful financial growth as a unit. Just remember your differences serve to make the unit (as a whole) better. So stay focused on what you can control — yourself and your financial well-being.
6. Obtain Child-Inspired Assets
This is a great way to get your children involved in the family’s financial direction and future.
As your accounts grow, be intentional about investing in something that reminds you of your children. This ensures that your financial plan incorporates the future (because our children are the future). For example, our family is patiently awaiting Roblox shares which are said to be released in 2021. We use shares as a experiential hands-on learning tools for financial growth.
7. Let Your Kids Play With Digital Money
Kid’s savings accounts are cute with their games and reward systems, but your children will learn so much more about financial literacy playing online games with digital currency.
8. Open CD’s For Your Children
Consider holding their birthday money and other monetary gifts in interest-earning CDs. That way, their money is working while it waits.
9. Save With Purpose
You must have a purpose for saving, or the money will just sit there and be used for something you did not intend. Have regular family meetings to discuss the goals of your hard-earned savings.
10. Read Annual Reports
These hundred page documents are an amazing tool for understanding financial concepts. As your children age, you can also read them as bedtime stories. They might find Mattel and Hasbro (toy companies) interesting.
11. Listen To Earnings Calls
Since thriving companies literally design the world we live in, listening to earnings calls (like this one) will give you a sneak peak into our future. And predicting the future makes it a little easier to financially prepare for it.
12. Bank Local
While online banks are becoming more popular, don’t forget to check out local credit unions. They have the best rates (in my opinion), which means better returns on your liquid cash.
13. Create A Knowledge Base
Create a strong online presence around your passion. Something you see yourself still doing 10 years from now. Please know popular, doesn't always mean profitable. So do not worry if it’s not immediately gaining traction. Take your time in building something you are extremely proud of. It will transform into a valuable digital asset with endless opportunities in your post-baby future.
14. Know Your Worth
Now that you have successfully bore children, it’s essential that you value your time. So set your price, and live your life.
15. Surround Yourself With Money Nerds
I’m currently studying Mellody Hobson. She’s opened my eyes to my relationship with money as well as shed a light on strategies for successful money management. Ken Chenault, another financial leader, helped sharpen my speaking and leadership skills.
16. Strategically Pay Down Debt
Restructure your finances so that you are always paying off debt with your assets. Amoritization schedules and pay off calculators will help you get organized and clarify your financial future.
17. Seek Financial Clarity
Financial anxiety comes from a lack of wisdom, clarity and direction. Start asking very specific questions and get very clear on your financial dreams. For example, what is your life expectancy and how much will you need to live comfortably for the rest of your time earthside?
18. Register Your Business
You can start out as a sole proprietor, but officially registering your business and obtaining an EIN opens up way more opportunities. Whether it’s the ability to hire your children, apply for business accounts with greater rewards, or contribute more towards your elder years, this move will definitely open more doors.
What financial tips would you give to your younger self? If you haven't already, we created a few calculators that we regularly use on our site, and hope they may be helpful to you too. You can check them out here. Need to schedule a one-on-one? Use code: HEART2HEART.
Until next time...
Love The Journey,