Planned or not, there will be situations when a mom has to stay at home for her little ones and family. This can be the toughest decision you are going to make. However, things can become complicated and out of control if you are going to sacrifice. In such a situation, how will you be financially secure? How will you save yourself from depending on your spouse or anyone else for money?
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“Money” can be a major factor in stopping you from staying at home. And, if you are going through a similar situation, don’t feel lonely. Thousands of mothers around the world are experiencing a similar problem.
With this being said, here are few tips on how to be financially secure at home.
#1 Understand and Move Forward
First things first, you should understand that your financial image is going to change in the upcoming days. By staying at home, you will not be able to take care of child care completely. You should split the responsibility with your better half.
Here are a few questions you should ask yourself:
- Will you lose your health insurance?
- Should someone else (other than your spouse) take care of your child’s welfare?
- Do you have emergency funds? How will you keep this fund safe and secure?
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#2 Is it a long-term solution?
Are you planning to stay at home for a shorter period of time? Or, is the change intended forever? When you decide to stay at home for two years or less, you must focus on long-term goals. Also, have a backup to help you when the stay extends to 5 or 10 years. You must be prepared to tackle extensions early on. Talk to your partner for more information on how you are going to handle the change. Ensure that money and your idea to stay at home don’t break your relationship.
#3 A Retirement Account
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Though you are staying at home, you should have a retirement account. There are many different types of retirement accounts for stay at home mothers. Try to contribute at least 5000 USD to this account every year. Engage in simple freelancing tasks that can earn you a good source of money. Fortunately, most countries allow women to maintain a retirement account even when they are not working.
#4 Write a Will
Staying at home shouldn’t stop you from writing a will and protecting your assets. In fact, the need for a will becomes more crucial now.