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When you have a crying baby in your arms who wants to suckle on your breasts or needs you to change their dirty diapers, you forget everything else and give them your hundred percent. As a new mom, your baby takes precedence over everything and everyone, and that includes you. While it’s normal to dedicate all your time and sleep towards making your baby comfortable, you must not forget that there are a few essential things that you cannot (or should not) postpone for later. One of the most important things that fall under that category is taking care of yourself. You might be wondering what we mean by that, well, read on to find out.
Taking care of yourself not only includes taking care of your health, physically and mentally, but it also includes your future. What we mean by that is your financial security and responsibility towards yourself and your child. Until your child is eighteen years old (at least), you bear the financial responsibility of taking care of them. You also have to look out for your future and after retirement finances. Therefore, starting an investment plan is crucial for a secure future. Don’t worry, it doesn’t have to be complicated. Scroll below to find out five simple steps to start investing as a new mom:
- Determine Your Goals
While every person wants to have a “lot of money” in the future, you must start by defining what that means to you. Set an objective and achievable goal for the future before you begin your investment. Your goals have to be specific as they will determine the kind of account you have to open, how much you need to invest and what type of investment you need to make. So, start your investment plan by writing down why exactly you’re investing and what your short-term and long-term goals are.
- Open An Account
You might find it challenging to open an account because of the different types of accounts that exist. While you can open an account in less than five minutes on the internet, it’s best to contact a trusted broker who can guide you through the steps. They can guide you through what account will be suitable for you (child’s education, retirement, savings, brokerage, etc.).
- Identify Your Risk Tolerance And Time Horizon
You must identify your risk tolerance (your ability to take a risk and your willingness to take a risk) and your time horizon (how much time you have before you need the money you’re investing). These are the two main aspects of your investment plan that you need to determine the right type of asset allocation for you. The longer your tolerance and higher your risk, the more aggressive your investment can be.
- Pick The Right Investments
Your risk to return ratio is directly proportional, which means the higher your risk tolerance, the higher your expected return. However, ensure that there is a balance between the two. Don’t take on more risks than you require or can handle. It’s not the time to be greedy.
- Stay Engaged With Your Funds
The hardest part of starting an investment plan is creating a portfolio, which is done. But that doesn’t mean that you forget about your investments and never look back. Check your accounts, portfolio, and assets at least once every quarter to know how you’re doing. However, you don’t have to worry too much because the beauty of diversified funds is that it’s a lot more stable than individual stocks that may take a nosedive at any given point.
It might seem like starting an investing plan is not important, especially when you’re riddled with mommy duties. However, it’s best to start young so that you can enjoy a worry-free retirement with financial stability and security. Have you started investing your money yet? Comment below and let us know!
