A Complete Guide for Stay-At-Home Moms to Save for Retirement - Education | Financial Buzz

A Complete Guide for Stay-At-Home Moms to Save for Retirement

It’s a sad fact that a lot of stay-at-home moms are under the impression that they can’t contribute to the retirement funds of the household. After all, they don’t have the benefits of a 401(k) and an employer that will match their contributions.

They’re under the impression that the working dad is the only one responsible for the retirement savings. Stay-at-home moms can use this guide in order to help them save for retirement. At the very least, this guide can help them help their working spouse in improving their retirement funds.

Start by Doing Two Things:

Before you can even start saving for your retirement, you need to take care of two things:

1. Get out of debt

There’s no point in establishing a retirement fund if you’re neck-deep in debt. The interest will slow your efforts down. For example, the monthly interest that you’re paying for your credit card debt can go straight to your retirement fund. That’s hard to do if you have two to three maxed-out credit cards.

2.Establish an emergency fund.

You need to save for an emergency so that you won’t dip your fingers on your retirement fund. Emergencies include being laid off from work, medical emergencies, emergency home repairs and more. Having an emergency fund ensures that you won’t have to go into debt when an emergency arises.

Most people establish an emergency fund that should cover for 3 months’ worth of expenses even if there’s no money coming in.

Set Aside a Fixed Amount that You’ll Pump into the Retirement Fund

You can start with $100 a month. You shouldn’t have any problems finding an extra hundred bucks for your retirement fund. Here are some recommendations on how to get extra money:

Save on electricity and other utilities

This could be something as simple as turning off the lights when leaving the room. Another tip is to wait for a full load before washing the dishes and the clothes. You can also adjust the thermostat by a couple of degrees and get a lot of savings on your utilities.

Check your subscriptions.

Do you really need 350 channels? Check your cable subscription if you can lower it. You can also check out the bundle offerings of companies to get a lower package for the phone, cable and Internet bundle.

Shop around.

Don’t buy the first things that you find. This applies to everything from clothes to insurance. Learn to shop around to find the best deal.

Look into freelance work that you can do at home.

You don’t need to give up the privileges of being a stay-at-home mom in order to start earning money. You can earn money doing freelance work at home. Here are some things that you can do:

  • Be a virtual assistant.
  • Be an online seller.
  • Set up a blog and earn through Google (NASDAQ: GOOG) AdSense.
  • Write articles.
  • Answer calls or emails.
  • Where to Invest

Now that you have some extra cash, it’s time for you to learn where to invest for your retirement. Investing in mutual funds in a Roth IRA is a good idea mainly because you don’t have to pay taxes when you withdraw your retirement funds.

File a joint tax return with your husband, say $5,000, and you’ll have $400,000 in 20 years at 12% growth. Leave it there for seven more years, and you’ll have a cool million in your retirement fund. Not bad for a household with a stay-at-home mom.

Retirement, Mom, Freelance, Retire, Savings, 401K