What Every Stay-at-Home Mom Needs

Thank you to Dave Ramsey’s Endorsed Local Provider program for sponsoring this post!

When I became a stay-at-home mom there were many things that I forgot to do, like take a shower or change out of my yoga pants. However, there is one thing that almost wrecked my family financially that I forgot to do – update my retirement account.

Okay, so now you are thinking, “I do not need to worry about my retirement account, I had a 401(k) from my previous employer, and I will just leave the money there”. If you had a 401(k) at a previous employer, GREAT, however, now you need to figure out what the best options are for your future money.

My Papa died at 92 years old and after he died, my Nani told us about the gift fund he had set up using a portion of his retirement savings. The account had $80,000 in it – just for gifts for our very large family and church! My Papa knew how to work his retirement account for sure!

My Papa would not have been able to bless his family and church without sacrificing his retirement years had he not planned when he was in his twenties what he would do for retirement. That is why, even as a stay-at-home mom with no income, I have a Roth IRA.

Investing can be tricky and to be honest a little scary. You can look to several places to help you figure out where the best rates are and how to invest like a pro. My two favorite places are Bankrate and, of course, Dave Ramsey’s Endorsed Local Provider program.

Bankrate can help you find the best interest rates from your savings account to your retirement accounts. In fact, I have a friend who works in the banking industry and claims her bank checks Bankrate often to see how their rates compare to their competitors.

Dave’s ELP program will hook you up with someone in your area to walk you through this tricky world of investing and help you figure out your retirement options. It is free to sign up and I highly recommend that you speak to someone about your retirement options rather than attempting to figure out your options on your own.

If you have a 401(k) still sitting with a previous employer, roll that account over into a Roth IRA. 401(k)’s are great but they are only beneficial to you while you are still employed (due to employer matching and pre-tax contributions). Once you quit, you need to roll your 401(k) into an account that will earn you money and that you can continue to contribute to (some companies do require that you wait six months before being able to roll your account over).

If you are worried about being able to afford a contribution to your retirement account because you are on one income, try only contributing $5 every paycheck to start. Every little bit helps and retirement is something that you definitely do not want to put off. Think about this, if you are in your twenties and you invest $1,000, you could potentially have close to a half-million dollars by the time you retire. I do not know about you, but that sounds pretty awesome to me.

Another important factor of retirement to remember is that it is not all about you. If you have a fully funded retirement account when you retire, there is less of a chance that your children will have to support you financially as you age. I know as a mom that the last thing I want to become is a burden to my children.

Women typically live longer than men so make sure you have a fully funded retirement account when you retire. Your future self will thank you.

When did you start saving for retirement?

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