The average working mom spends 98 hours working every week, according to abc7. This time is split between working in a paid role and carrying out household duties, including cooking, cleaning, and looking after children. This, therefore, doesn’t leave much time to manage the household finances. But as research has found that parents have up to 51% more debt than non-parents, it’s crucial you follow these money management tips.
Being organized when you have so little time may sound tricky, but there are some great apps you can use which will help you organize your finances better. Bill organizer apps can store all your paperwork away digitally. When a bill is due, you’ll receive a reminder so you don’t forget to pay it. This is useful when you consider that 46% of people say they’ve missed their rent or mortgage bill. Some apps even let you pay the bill directly through them, while others will review your bank account and automatically set aside cash for each bill so you don’t have to.
Regularly check your mortgage
Last year, it was revealed that one-quarter of Americans don’t know what the interest rate is on their mortgage. If this sounds like you, find out what it is now by contacting your lender. Not knowing could cost you thousands over the course of your mortgage term. You should also regularly shop around and look for a mortgage deal with a lower interest rate as this will save you money. Think about whether you can increase your monthly payments too. If you can afford to pay an additional $500 per month, your mortgage will be paid off more than 5 years faster than you originally anticipated. To work out your specific savings, financial tools can be used to calculate house payoff.
Budget for everything
It typically costs $284,570 to raise a child until the age of 18, so around $15,810 per year. Households also spend an average of $22,666 on household bills annually, according to doxo. With such high costs, it’s important that you set up a budget for all your essential items. Go through all your receipts and note down how much you spend on everything. Apps such as Goodbudget allow you to virtually put cash into envelopes for each expense. You can use this alongside a spreadsheet so you can closely monitor where your cash is going. It’s also best to budget for the unexpected. For example, if your car broke down and needed repairing, it’s better to dip into your emergency pot than take out a loan. It’s recommended that you have 6 months’ income saved for emergencies. As a busy mom, you’re likely to forget to move over a chunk of your earnings each month, so automate the transaction instead.
Overworked, tired moms often forget how important good money management is. However, it’s the key to avoiding debt and to running a successful household, so make sure you follow these tried and tested tips.