Making the decision to give up a career — as well as the comfort that comes with a regular income — is never made lightly. That’s true whether you’ve made the decision to spend more time with your kids or you want to avoid paying the enormous costs of childcare.
Whatever your reason for becoming a stay-at-home mom, you’re sure to want to keep a keen eye on your finances so that you can comfortably cover everyday expenses while still being able to contribute towards your long-term saving goals. Remember, it can be done! Read on for some tips to help you keep your finances in check as a stay-at-home mom.
Monitor Spending
First, monitor your spending over a set period — three to six months should suffice. Log all incoming and outgoing finances. This will allow you to create a strong and accurate budget for necessities, luxuries, debt payments and savings.
It will also allow you to identify areas of overspending, empowering you to curb unnecessary costs, like that rarely used gym membership.
Strategize for the Unplannable
This might seem unfathomable: how can you plan for something unexpected? Simply speaking, we mean having a financial safety net in case of a household emergency — like your boiler breaking down in the middle of winter.
Sure, there’s emergency help when you need it, like a personal loan or a line of credit. But by dedicating a portion of your household’s monthly income to an emergency fund, you can likely bypass these backup options altogether.
Revisit Budgeting
Life changes. The cost of living is increasing as mortgage fees rise and grocery bills skyrocket. With that, it’s important to revisit your budget regularly.
By regularly taking the time to log your income and expenses, you might find that it’s a savvy decision to reallocate money — like reducing your luxuries budget and redistribute this money to a savings account, like Registered Retirement Savings Plans (RRSPs), when it’s warranted.
While not as fun in the moment, you’ll appreciate tweaks like these later down the line when your kids are eyeballing colleges or universities and even later when you plan to retire.
Be a Part of the Conversation
Last, don’t undermine your worth or your contribution. Being a stay-at-home parent is no mean feat. It’s arguably more demanding than many full-time jobs, with less downtime and longer hours — most kids won’t understand the concept of nine-to-five. Keep this in mind when you’re breaking down your budget and allocating money to luxuries, like haircuts and clothing.
It’s also vital to be a part of the conversation regarding finances. In many households, one person takes the helm, with the other left in the dark. Having both adults in tune and on board with household finances creates a healthy sense of balance and empowerment.
The Bottom Line
By creating a budget that factors in savings, ensuring shared control of finances, and devising a financial buffer in case of emergency, your bank accounts will run like a well-oiled machine, allowing you to devote your full attention to enjoying every moment with your kids.
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