9 Principles for Managing Mom Money

“In this world, nothing can be certain, except death and taxes.”

-Benjamin Franklin

Get ready for the Tax Day in the U.S.! Whether you owe money to the IRS or will be getting a refund, here’s 9 principles to help you manage your money better, especially for independent Moms because your Money or your Life is not really about money. It’s about Life. It’s about liberating your mind and heart, not just your hours and days.

There are 9 important self-asking questions before you decide a solid financial plan to manage your money:

Purpose – what is my life about?

Passion – what drives me, compels me, allures me, arouses me. Where’s the energy?

Pleasure – what is happiness? What makes me happy? Really

Pattern – what does how I invest myself tell me about myself?

Presence – awareness in the moment of what’s going on. Grace in the midst of infinite daily choices.

Proportion – – keeping all elements in right relationship one to another. Allowing your life to right size in the context of time. Mastering boundary.

Play – making and remaking “the rules”: how else can I do this? Where else might I find it? Who else can help? What else can it be?

Power – that which comes from living at enough, being the one in your life who chooses and acts and takes responsibility.

Peace – contentment, satisfaction, at ease, no striving, nothing needs to change for me to be happy

 

After you walk through the major principle of your money and your life, here is 9 practical money-managing actions that you would like to implement from today:

 

1. Pay Yourself First

Create an automatic way to save up 10-15% of your income (20% when you start earning over $90,000/year). Make this a fix routine throughout your life.

 

2. Debt Free

The only things worthy of debt are: education, home or very well thought-out business ventures, better start from small business scale. The goal should be to work towards a debt-free life. Debt can ruin your life!

 

3. Have an Emergency Cash Stash

People under 40 should have at least 3 months worth of living costs in a safe place like a bank, and people over 40 should have 6 months stashed away for emergencies. Remember, you should only use for real emergencies.

 

4. Retirement Funds Bucket

Take advantage of tax-advantaged retirement vehicles (i.e., Simplified Employment Pension Plan).

 

5. Invest Smartly

There ar only 5 places you can employ financial armies: cash investments, bond investments, stocks or equities, real estate, or commodities. You should diversify, keep costs low, invest for the long-term and limit your risk by never putting more the 10% of your investment capital into any one thing.

 

6. Seek Think-tank

Develop a network of wise people that gives invaluable advice. Whether you are looking for legal advice, tax advice, investment advice, etc., a wise person acts slow, deliberate and seeks out the best wisdom and advice available.

 

7. Goals & Track

Set annual goals and break them down monthly to track how you are doing. Every year you should track your net worth (assets minus liabilities) and make sure it is growing every year towards your goals.

 

8. Use a Business Entity for your Distributorship

Use a business entity (i.e., an LLC) for your Distributorship. Take advantage of the tax benefits of being a business.

 

9. Give Back

Develop a habit of giving back and making charitable donations. Doing so will help keep money in perspective and you will be happier as a result!

 

By implementing these 9 principles for managing your money, you’ll be well on your way to financial freedom and the peace of mind that comes with it!