Building Wealth as a Working Mom: Balancing Career and Finances

Post originally written by Devin.

However, adopting several strategies can make your life seamless. Learning to manage your time, finances, and work-life balance will make you feel more confident about succeeding and building the life you want.

Financial Planning and Long-Term Wealth Techniques

Start by building a solid foundation for your future by getting a handle on your finances. Several tactics let you get ahead by addressing immediate needs and building lasting wealth.

Automate Savings

Finding the time to manage your finances can feel overwhelming if you’re not in complete control when balancing a business and family. However, it’s important to find a savings and budget strategy that helps you stay on track with your financial goals. 

According to data from the Federal Reserve Bank of St. Louis, research shows that Americans only save just 2.9% of their personal income. Several factors are involved, from inflation impacting their savings to a lack of confidence in managing money wisely.

The best way to get a handle on your finances is to automate it. This will take your mind off how much money you need to tuck away while consistently building toward your financial goals. 

Save money each month by setting up automatic transfers from your checking to a savings account. Most banking apps let you do this, taking the guesswork out of saving. Even if it’s a small amount, it will grow faster than you realize when automated.

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Increase Income Sources

Relying on a single source of income can be risky, especially when managing the demands of your family and business. Multiple streams give you more security and flexibility. Consider diversifying your income to reduce the pressure on your main business while building long-term wealth.

For instance, real estate investing is an effective way to increase your income potential. It offers the opportunity to grow your wealth over time, providing passive income through rental units or appreciation of property value. It’s a solid strategy to secure your financial future without being tied to traditional, time-consuming jobs.

However, real estate investing can be complex, so it’s important to understand various concepts. Consider like-kind properties, which allow you to defer capital gains taxes when you exchange one investment property for another of a similar nature.

For example, you can exchange partial ownership in a tenancy in common (TIC) interest for real property, allowing you to own 100% of the interest fee. This can give you full control over the property and its income potential, making it a good opportunity for building lasting wealth.

Invest in Flexible Work-Related Technologies

The right technology can make all the difference in streamlining your operations and improving your return on investment. For example, artificial intelligence (AI) has significantly improved business operations by enhancing efficiency and productivity. 

As a working mom running an online business, investing in this tool can give you an edge while saving time and money. In fact, over 57% of companies have adopted AI tools like ChatGPT to answer questions and automate tasks.

Generative AI tools can handle data analysis, marketing efforts, customer service and more. When you let these platforms manage repetitive moves in your business, you get to focus on more valuable aspects like strategy. As a result, you maximize your time and run a more cost-effective company.

Utilize Tax-Efficient Child Care Options

Child care can be one of the biggest expenses for working moms, but keeping your business running is essential. Fortunately, several government programs and tax credits help lighten the financial load. Taking advantage of these reduces out-of-pocket costs while focusing on growing your startup without stressing over day care expenses.

One program to look into is the Child and Dependent Care Tax Credit. This allows you to claim a percentage of what you spend on child care each, but it varies based on your income and state. For instance, Pennsylvania will enable you to claim $1,050 per child if expenses amount to $3,000. Claiming this credit at tax time will greatly reduce the amount you owe.

Create a Long-Term Financial Strategy

Thinking beyond immediate financial needs is essential to securing your family’s future and setting your business up for success. Have a clear plan in place by establishing financial goals. 

Consider where you want to be in five, 10 or 20 years — whether saving for your children’s education, buying a house or expanding your business. Once you have those goals, you can begin mapping out how much you need to save each year to reach them.

One part of a long-term strategy to think about is retirement planning. As an entrepreneur, you don’t have the luxury of employer-sponsored retirement plans, but plenty of options are available. Consider setting up a SEP IRA or Solo 401(k) to contribute a percentage of your business income to your retirement savings. This often comes with tax advantages, and automating your contributions guarantees future savings.

Career Balance Strategies

Use the following strategies to create a healthier work-life balance while growing your business.

Leverage Time-Management Tools

Motherhood and running a business are demanding. With numerous responsibilities to fill your day, time is of the essence. That’s why time management tools are essential for maintaining productivity and finding a balance that works for you.

A popular tool for maximizing focus during work sessions is the Pomodoro timer. This technique breaks your work into 25-minute intervals with a five-minute break in between. This helps you stay focused without burning out, making it especially useful when you have limited time to work. 

Additionally, consider using a calendar to help you organize your schedule so you know what needs your attention. Creating a schedule lets you block off time for different tasks while you ensure you’re making enough time for family or taking a moment to yourself. Apps like Google Calendar and Trello can help you with this — they’re free and extremely easy to use.

Keep an Organized Workspace

An organized space is key to staying productive and stress-free. Your time is valuable, and clutter can slow you down and make it harder to focus.

Gree your deck of clutter by keeping only the essentials there. This can include items such as:

• Notebooks
• Computer
• File organizers
• Trays 
• Drawers

Ensure you have storage solutions to keep paperwork and supplies out of sight but within reach. Clearing your desk at the end of each day can give you a fresh start the next morning.

Your digital workspace matters as much. A cluttered desktop or email inbox can be distracting, so organizing your files into labeled folders and using cloud storage systems is important. Google Drive or Dropbox can keep everything in order so it’s easily accessible.

Build and Utilize a Support Network

Spending your time caring for your children and running a startup alone can be lonely. Sometimes, you may wonder how to get it all done or have an off day and need to vent. Supportive people can give you all the emotional support and advice needed to keep going. 

Connecting with entrepreneurial mothers can make you feel part of a community. You can share ideas and offer encouragement during challenging times.

Make networking easy by joining groups on LinkedIn or Facebook. Many forums cater to mompreneurs and let each member connect through one-on-one hangouts and Zoom chats. 

Talking to friends or family about the struggles of managing a business and family is one thing, but connecting with those who get where you’re coming from can make your life less complicated.

Outsource and Delegate

Outsource and delegate your tasks if you have the funds. This tactic effectively balances your time, even though you may feel it’s your responsibility to do everything independently. However, hiring extra help gives you time to focus on the most important parts of your business and family life. Working with someone also allows you to grow your business.

Start by making a list of tasks that you enjoy the least. For instance, suppose administrative duties are your weakness. You could hire a virtual assistant to help you manage emails, schedule meetings and manage social media accounts. 

A lot of these tasks take up valuable time but don’t necessarily require your personal attention. A freelancer can take these responsibilities off your plate to keep you from being overwhelmed while you focus on more strategic points in your business.

Establish Boundaries Between Work and Family Time

Working can easily spill into personal time and vice versa when managing a business and family. Setting clear boundaries is crucial for maintaining balance and ensuring your full presence in both areas of your life. 

This may be easy enough to do when you work for an employer that offers your typical nine-to-five schedule. However, being an entrepreneur means you may be working at any time of the day or night. That’s why it’s important to define your working hours and stick to them as much as possible. This could mean dedicating time while the kids are at school or blocking off mornings and evenings. 

Unplug and focus on being present during family time. You can do this by silencing your phone, closing the laptop and turning off work notifications. This time lets you connect with your family without distractions and ensures your job doesn’t infringe on your personal life.

Finding Balance and Building Success

Balancing your career and finances can be challenging at times. However, the right strategies make it possible to thrive in both areas. Remember that you can always get help when you need it. Take advantage of it to help you stay ahead in your personal and professional life.