As we juggle the joys and challenges of motherhood in 2024, it’s essential to keep a firm grip on our finances, especially in a cost-of-living crisis. Whether running after toddlers (and teenagers!) or balancing work and family life, effective financial planning ensures security and peace of mind. However, only some people are natural planners, and some need help planning finances. Fortunately, this guide is packed full of practical, relatable advice tailored for all of us. So, if you want to improve your ability to plan your finances this year, simply keep reading.

1. Budgeting

A well-crafted budget should be the foundation of any financial planning.  It’s not just about tracking where our money goes; it’s about gaining control over our finances.

Start by listing all your income sources – from salaries to side hustles to child benefits. Then, detail your monthly expenses, including those small costs that add up, like Friday night takeaways for you and your husband or weekly Starbucks trips. Utilising budgeting apps can simplify this process, turning what might seem a daunting task into a manageable and insightful routine. Remember, a budget is not about restrictions; it’s a tool for financial empowerment, allowing us to make informed decisions. For busy mums managing both family finances and personal goals, using tools like the Albert app can provide an easy way to keep track of spending, savings, and budgeting all in one place.

2. Building a robust emergency fund

As mums, we know all too well that pleasant and challenging surprises are part and parcel of life. An emergency fund acts as a financial safety net for those unexpected moments. Ideally, this should cover three to six months of living expenses, providing a buffer against sudden job loss, home repairs, or medical emergencies. Start small if necessary and build it up over time. This fund isn’t just a financial buffer; it’s peace of mind, ensuring we’re not caught off guard by life’s unpredictabilities. This is one of the most important tips I can offer.

3. Exploring Investment Options

Investing might seem daunting, especially if you’re new to the concept, but it’s a powerful way to grow your savings, sometimes even while you sleep. From stocks and bonds to mutual funds, there are options out there to suit various risk appetites and investment goals. If you’re new to investing, start small and seek advice from financial experts. Tools like TradingView can be invaluable for tracking market trends and making informed decisions. Remember, investing is not a sprint; it’s a marathon with potential long-term gains. Investing with cryptocurrency is another option to consider, offering the potential for high returns, though it comes with its own set of risks that require careful research and risk management.

4. Smart savings for the future

Whether it’s saving for our children’s education, a family holiday abroad, or a new home, setting clear financial goals is crucial. Once you’ve identified these goals, create a savings plan. There are tons of templates online to help you. Consider opening a savings account with favourable interest rates or look into ISAs (Individual Savings Accounts) for tax-efficient saving options. Review and adjust your savings plan to align with changing income levels and financial priorities.

5. Getting your debts straight

Debt can be a significant source of stress, especially for busy mums. Prioritise payment of high-interest debts, such as credit card balances, to reduce the overall interest paid. If you have multiple debts, consider strategies like debt consolidation or seeking advice from financial counsellors. Remember, managing debt is not just about reducing what you owe; it’s also about understanding how to avoid unnecessary debts in the future. Try to avoid apps like Klarna if you can.

6. Retirement Planning — it’s never too early

As mums, we often focus on the demands of the present and overlook our future needs. Retirement planning is crucial and should be an essential part of your financial strategy, because how much you save now will reflect the quality of life you have when you no longer have to work. Look into pension schemes, including workplace pensions or personal pensions. Contributions made now will compound over time, ensuring you’re financially secure later. It may be an excellent time to see how much you have already saved towards your pension.

7. Balancing work and family finances

Balancing career and family finances can be challenging for working mums because it can feel incredibly overwhelming, especially if you are a single parent. Explore flexible working options, childcare vouchers, or family-friendly policies at your workplace to save money wherever you can. Every little bit of support helps.

Whether you’re working or a stay-at-home parent, being a mum will always pull your attention in a thousand different directions. So, pick the right starting point for you from these seven financial planning tips and grow your wealth as you raise your kids.

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