More and more, mothers are taking increased responsibility for managing their families' finances.
While coordinating the day-to-day costs of running a household is certainly important, it’s equally important to set money aside each month for themselves as part of a long-term investment plan, says Lynn Bolin, head of Communications at M&G Investments.
She says these types of investments usually require some degree of time to be truly effective, which is why it’s vital to start investing as soon as possible.
Below are five investment tips from Bolin and her team to help all mothers get started on their financial journey to self-care.
Tip 1: Define your investment goals
Investing towards your retirement demonstrates the importance of long-term thinking and defining your investment goals upfront. Knowing when you plan to retire and how much you’ll need at that point is vital in determining how much you’ll need to contribute on a monthly basis.
Tip 2: Review your budget
Reviewing your budget is an important way that moms can identify just how much you can reasonably invest, and the areas where there may be an opportunity for you to free up some extra cash.
Tip 3: Have a realistic deadline
Having a realistic deadline makes your investment goals more tangible and helps keep you motivated. Unfortunately knowing what a “realistic” timeline looks like can be challenging, but it will help you reach your investment goals.
Tip 4: Understand who you are as an investor
This refers to your investor profile, particularly your investment time horizon and risk tolerance. The reality is that the value of your investment is likely to go up and down during your investment journey. The longer your time horizon, the more risk assets you should be able to hold as volatility tends to smooth out over time.
Tip 5: Start investing and keep going
Time is need to build up wealth. The easiest way to do this is to start as soon as possible and remain invested for as long as possible. However, there are a lot of obstacles that can get in the way. The trick is to allow your chosen fund manager to navigate the investment landscape for you.