By Jessica Kmetty
Life moves very fast these days. Between juggling schedules for multiple children, personal commitments, professional commitments, and squeezing in some “me-time”, the need for flexibility in our lives as moms is crucial. It’s crucial for happiness, yes, but sometimes it’s crucial just for existence. It’s no wonder that so many women are taking their careers and finances into their own hands and building businesses that allow for this flexibility. The Survey of Business Owners data shows that 9.9 million US firms are women-owned, they’re generating $1.4 billion in receipts, and nearly 90 percent are nonemployer firms. Mom-bosses are following their passions, doing it for themselves, doing it for their families, and succeeding in ways they always knew were possible. As a mom doing all these things myself, I am sharing my top financial tips for the savvy mom-bosses out there:
1. Cultivate Your Tribe
One thing I’ve noticed about female entrepreneurs is that many seek motivation and strive to provide motivation for others. The positive energy that comes from sharing stories and experiences with others is valuable, so take advantage of groups that exist to cultivate this energy. Whether it’s a local group or one like the National Association of Women Business Owners, developing your tribe of like-minded business professionals can give you access to resources that help you continue to grow.
2. Find Your Balance
When you run your own business, creating balance can fly out the window. You may be running your life from your cell phone (which doesn’t shut off unless you make it), your vehicle becomes your office and your social events become business networking. If you never stop working, you may miss out on the things you’re actually working to secure. Your business probably won’t fail if you take half a day to volunteer at your kids’ school or shut your phone off by 8pm. By finding your balance, you may find you have greater energy to run your business when you are focused on work.
3. Develop Long-Term Goals
Equal income earners may find it easier to work toward long-term financial goals than those who are earning supplemental income for their family. When you are earning supplemental income, you may think more short-term about your earnings, such as making enough to cover private school tuition for your child or fund a family vacation. However, your earnings are still important for reaching your long-term financial goals so setting them and working to fulfill those goals is vital. Don’t forget the opportunity to have a retirement plan in place for your business. You can learn more at http://bit.ly/1NXho2l.
4. Insure Your Replacement Value
Not only is your income important to your family, but the work you do as a mother has significant value. You provide care, transportation, home maintenance, meals, and the list goes on. When put in dollar terms, the salary of a mother can be worth $100,000+. This would be a significant loss if something happened to you, so make sure your family is covered for your loss.
5. Invest
Choosing how to invest your money relies on a balance between your risk tolerance and your financial goals. Investing may seem overwhelming, but you can start by asking questions to get a better understanding of how your money is working for you. Do you understand what you’re investing in – not just specific companies, but different asset classes as well? Do you understand how each of these investment sectors make money? Are you proactively making tactical changes in your portfolio when the financial environments change?
For more articles related to financial planning for the family, visit our blog at http://searcyfinancial.com/blog-posts/84-planning-for-the-family.