Being a mom and running your own business at the same time is tough and there are a lot of challenges that you have to overcome. Learning how to balance parenting with work and avoiding common pitfalls like guilt about working is so hard. One thing many mompreneurs struggle with most is financial planning.
Here are some of the best financial planning tips for working moms that run their own business.
Update Your Insurance
Even though it’s not something that you want to think about, you need to make sure that your child is provided for if something happens to you. If you don’t already have a life insurance policy in place, you should definitely consider taking one out. A lot of people avoid this because it’s not a nice thing to think about, but it’s better to be safe than sorry. Both parents need insurance and even if you already have a policy, you should consider updating it now that you are a parent.
When you are updating your insurance, you should also consider drawing up a will. It’s not likely that you will need to use it for years to come, but having it there will make sure that your kids are looked after if the worst does happen.
Start Saving For Education
Even though it seems like a lifetime away, your little ones will soon be grown up and they will be thinking about college. You want your children to have all of the best opportunities, so start saving for their education right away. Consider making some investments, like Forex trading or stocks and shares. If you get started early, these investments will grow and when the time comes, you will have a healthy account to help pay for your child’s education.When you are setting money aside for your child’s education, it’s also worth thinking about yourself. Are there any business courses or extra qualifications that may help you get your business off the ground? There are actually a lot of financial benefits to going back into education later life, so it’s a good investment to make.
Separate Family and Business Finances
You can’t always keep your business and family life separate, especially when you run your business from home. But when it comes to your finances, it’s important that you do keep things separate. If you start using your business account to buy things for the family, even if they are only small purchases, you will soon lose track of your finances. Equally, it’s not a good idea to put personal money back into the business because you will be forced to make sacrifices at home. If you don’t already have one, it’s important that you set up a business account and keep it separate from your personal one.
Trying to stay on top of business finances while also raising a family is tough, but if you follow these tips, you can manage it.
