Staying at home with a child isn’t usually something that mums tend to regret. After all, devoting yourself to your kids as much as humanly possible during those important developing years is probably something you wouldn’t change. It’s not something that everyone gets to do, and getting to be there for those years is a real privilege. But if we think about things from a career angle, as well as from a financial perspective, it’s a big risk.
So more mums have been wondering how to achieve financial independence, especially as many find themselves becoming dependent on someone else’s salary. (Though it’s worth pointing out that roles are reversed more than you think; stay-at-home dads are more common than ever! You can read more about stay-at-home dads here: http://www.npr.org/stay-at-home-dads.)
But what is financial independence? A lot of people assume that it means working your way up to a particular sum of money, a sum so large that it frees you from any financial care or career responsibility for as long as you like. This isn’t the case; it doesn’t mean that you’re, in a sense, independent from finances. It means that you’re in a position where you’re earning money and protected from financial disaster. It means being able to keep standing if something bad should happen.
How can this be achieved? For a start, finding a way to earn money as you juggle the responsibilities of parenting is pretty crucial. Of course, this doesn’t exactly sound like a walk in the park, and many of you may have scoffed at the idea, especially those of you staying at home and looking after more than one child during preschool years! But opportunities to earn money from reasonable part-time work from home are more plentiful than ever. As long as you have a computer, there’s plenty of opportunity for you in sales, copywriting, and other work. You can read more of the top ways to make money from home here: http://www.stay-a-stay-at-home-mom.com/home-party-sales-companies.html.
Beyond the actual earning of money, you need to ensure your credit and accounts remain unaffected by the actions of others. You need to keep them protected, too. So if you need to use a credit card, then make sure you get one in your own name. Of course, it’s best to get a credit card for yourself only if you’re earning an income. You can read more about credit cards for stay-at-home mums here: http://bankrate.com/credit-cards/credit-card-stay-at-home-moms.aspx. Opening your own bank account to accept your own income is also essential.
One reason these suggestions are good for building financial independence is that they will help you build up a good credit score – another thing you need to focus on here! When you have good credit – not your partner, not you as a couple, not your parents; you – you’ll be in a great position when it comes to financial independence because you’ll be in a better position to take out a loan for you and your kids should the need arise.
While it may sound odd to say that being in a position to take out a loan is a sign of financial independence, you must remember what was highlighted earlier: financial independence means being able to keep standing if things go wrong. Loans can help tremendously.