Personal Finance Tips That Work-at-Home Moms Should Remember
Being a work-at-home mom or WAHM is a rewarding experience, but it also comes with several challenges. One of these is managing personal finances, which is particularly applicable for those who work on a per-project basis and don’t exactly receive the same amount of salary every month. Fortunately, if you’re a WAHM who has an irregular income, there are several things you can do to keep your finances under control. These include:
Making a budget
This is an important step to take whether you’re a WAHM or not. By having a budget, you can prioritize important expenses like rent, grocery, utilities, and insurance payments instead of blowing your money on shopping sprees and having nothing left for necessities. When making a budget, avoid factoring in your irregular income, which often gets delayed. By relying on it too much, you might spend more than what you can afford and end up with debt or costly late fees. It’s better to consider your irregular income as additional earnings that you can spend on non-urgent items or even put in your savings.
Looking for long-term projects
If you’re working as a freelancer, strive to find jobs that come with six-month or one-year contracts and pay you on a regular basis. This way, you can receive payments for your work every month, which makes managing your finances easier. Having long-term contracts also gives you peace of mind since you know that there would be money deposited in your account at the end of the month.
Saving as much as you can
It’s important to have a nest egg that you can fall back on in case somebody in your family falls ill or if you encounter other kinds of emergencies. As much as possible, set aside 10 or 15 percent of your income for savings; this may not seem much at first glance, but your savings will slowly grow bigger over time as long as you don’t touch it.
Being a WAHM can bring about several challenges, particularly in personal finances. Fortunately, by taking the right steps, you can overcome these challenges and manage your money wisely.