You’re a mom or a mom-to-be. Things are different than before you had kids – in so many ways. But the biggest difference is most likely your finances. You are not just planning for yourself anymore but you
have little ones to think about.
Every idea or decision you make usually involves money. Before you make major changes consider what you need to do to finance that change. Instead of reacting to the endless options that life offers, begin to use your money consciously so that it expresses your value rather than determines your value. Here are 10 tips to help you finance change effectively:
1. Set goals – You probably hear this all the time….everyone tells us to set goals. But have you done it? It works. Sit down. Write them out. What are your goals for your family, your new business, your income?
2. Talk to your spouse about money – For many people, this is a very difficult thing to do. We all have different values around money and more often than not, you and your spouse’s beliefs about money are very different. Share your goals with your spouse and respect his or her goals as well.
3. Mind your money – Make a list of your expenses – all of them. I say all of them because we don’t think of all the little things we spend money on. We think of our mortgage, our utilities and groceries. But it’s the many unconscious spending that gets us in to financial chaos. Do this only once though. Tracking your expenses does not change anything but it will heighten your financial awareness
4. Live within your means – It seems like really basic financial advice, right? Right. But are you doing it? Really doing it? And I mean you never ever have a dime sitting on credit cards or loans past their due date. If you do, you are not a terrible person but have a plan to pay it off and move forward to live within your means. It really can be done.
5. Use Credit and eliminate debt – Establishing good credit is important but carrying a balance on your credit cards or credit line will cause serious consequences to your financial future. Have a plan to get your consumer debt and credit line debt to zero before launching a new business or making any big life change.
6. Soul spending – Connect your money with your values, save for your goals and wait before you make a purchase. Most often if you wait 2 days that “NEED TO HAVE” dissipates and you avoid impulse buys and buyer’s remorse.
7. Do not compare yourself to your neighbour (friend, sister, mother, etc.) – Acknowledge and appreciate what you have. Do not focus on what you are lacking. Money flows and you usually have what you need.
8. Understand your finances – Read about personal finance to make the jargon less intimidating or get the un-biased advice of a professional. Money matters can be simple. Do not let anyone tell you any different.
9. Know what you need to retire – It’s never too early or too late to crunch numbers. Have a financial professional help you with this.
10. Take Action – Have a plan! Do not wait until you have more money before you start a plan. Plan now to achieve the life you want.
Kathryn Mandelcorn is a Money Coach with Money Coaches Canada. Kathryn provides mentoring and unbiased financial advice for achieving stress-free finances today and in the future. At the same time, she helps clients redefine their relationship with money to be more truthful, peaceful and free.