SingSaver spoke to three super mothers and recognized their accomplishments in personal finance.
It’s no secret that the most important job in this world is being a mother. This applies to working mothers who have to reconcile work and family, as well as to mothers who take on the full-time role of caregivers for their children.
On this Mother’s Day, SingSaver pays tribute to three super mothers, not with flowers and cake, but with an allusion to their achievements and insights into personal financial management.
What does personal finances mean for a super mom?
For Yuki Liu, a new mom with an 18-month-old daughter, personal finance is about managing her finances well so that she doesn’t live from paycheck to paycheck.
“Now that I have a family, it is especially important to me and we plan our finances not only for ourselves, but also for our daughter,” she says.
Other working mothers, particularly Eva Tan, a freelance tutor, agree with this sentiment. Since she does not have a stable income, she tries not to spend too much during the rest periods.
“That being said, I have insurance to make sure I have coverage if I have to pay for medical expenses. I don’t have a lot of savings, but I plan to increase my CPF savings as my goal is to get a decent monthly payout of CPF after I turn 70, ”says Ms. Tan.
Obviously, the common theme behind personal finance is taking care of yourself and your family as they get older. For Lynn Sim, whose daughter now works full-time, her goal is to add to her savings for her retirement.
The Secret Behind Budgeting For The Family
1. Issues
For Ms. Liu, a large part of her salary (up to 50 percent) is used to cover family expenses.
“I’m working with my husband to make it through together. I am responsible for purchasing baby supplies and general household items for the family, while my husband is responsible for internet, cables, utilities and general household repairs, ”said Ms. Liu.
In a few months, this will be complemented by her husband making one-time cash transfers to share the cargo of groceries and baby items.
Likewise, Ms. Tan sees at least 65 percent of her salary for family expenses.
“In addition to the usual family expenses (including food and supplies), I spend a lot of money on gas and car maintenance, but the nature of my job makes it important that I drive, and I also drive around to help my family “Explains Ms. Tan.
2. Savings
For Ms. Liu, savings and personal expenses are weighted equally at 20 percent, although she admits the latter can be challenging.
“I’m trying to spend less on my beauty regimen, eating out and shopping online. It helps that my husband keeps pampering me with goodies so that I have to spend less money on a cool cup of bubble tea, ”added Ms. Liu.
Ms. Sim takes a very different approach: She puts more emphasis on spending less and saving more by spending 20 percent of her salary on personal expenses, 20 percent on family expenses, and 45 percent on savings. Like Ms. Liu and Ms. Tan, Ms. Sim also invests, although she spends a little more of her salary on it (15 percent).
3. Investments
Ms. Sim strongly believes that both investing and saving should be approached at the same time, as saving is a solid and safe form of wealth growth.
“I only invest when I have additional resources and potentially risk losing or growing my money,” she says.
Ten percent of Ms. Liu’s monthly salary is for investment. Their portfolio includes a retirement plan with Aviva, mutual fund / ETF investments made through the POSB Digibank mobile application, and CPF investments made through the CPF investment scheme.
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Ms. Liu invests cautiously and frequently watches how market forces can counter her investment decisions.
“The Covid-19 pandemic has shown that things can go south quickly and that I’m glad I included manageable risks in my financial planning,” she explains.
For Ms. Tan, she doesn’t rely on her investment portfolio, but instead focuses on relatively stable products recommended by her brother.
After deducting her investment amount and personal expenses, she pays in the rest as savings for rainy days or spends it on what she deems necessary.
Collaborative financial independence
All three women clearly demonstrate a high degree of independence in managing their personal finances. Both Ms. Tan and Ms. Sim believe that they should be fully responsible for their finances and not rely on anyone.
For Ms. Liu, who is financially independent, she also believes in a collaborative approach to financial planning with her husband.
“It’s a team effort,” she says. “There are months when our spending is higher than usual, so we will discuss and adjust our spending together to live within our means.”
Find a balance between hectic pace and family time
As a relatively young mother, Ms. Liu finds that she has a longer runway to look for extra income on rainy days.
“That doesn’t mean, however, that I will get involved in a hectic pace, in which I have to sacrifice a lot of time with my family. With the increasing digital transformation and the change in the procurement landscape, it is possible to develop a sideline without constantly having to leave the house, ”she says.
Seasoned mothers Ms. Tan and Ms. Sim, however, have earned their strips and are now more focused on being with the family.
“Money can be made anytime, and there’s no point making all the money in the world, but you don’t have enough time to spend with loved ones,” says Ms. Tan.
Reach your personal financial goal
Managing your personal finances is the easiest thing in the world, no one ever said.
Because of this, Ms. Liu is very aware of the challenges, especially when she has just started her family and needs to review a 20-year financial plan.
Her goal is to make sure that her family is financially supported, and most importantly, that she has the financial means to help her daughter achieve her goals, regardless of who they are.
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Being satisfied and happy is a common goal of all mothers, says Ms. Tan.
“As long as there is enough for me and my family, that would be enough. I don’t have to be filthy rich to be happy and content.
“I try my best to make sure there are enough resources for the children. I’ve spent quite a bit on enrichment classes for them – the idea is not just to focus on their studies, because life is more than just studying, ”she says.
When her children were young, she enrolled them in courses that taught life skills like swimming and anything that would help their children expand their knowledge, passion, and interest.
“In any case, the enrichment classes also served as support, so that if my children did not do well in their studies, they could turn to their passions, for example a piano teacher,” adds Ms. Tan.
Share an important lesson about being a super mom
As mothers, they have had a fair amount of learning experience over the years. An important lesson from Ms. Liu is having difficult financial discussions with her other half.
“Do the hard part and you’ll both come out stronger,” she advises.
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Ms. Tan also shares her key takeaway: “I’m not rich and I don’t have sophisticated resources to manage my finances, but I think there is more to life than being rich.” She also wonders if you really can would be happy to have to save ridiculously (e.g. eat lean meals) to have all the money in the world.
Perhaps the most important and universal advice that applies to both mothers and fathers is that offered by Ms. Sim: “Save as much as you can. Enjoy life, love yourself. Live your life as you only live once. Children are just a phase of your life. Do what you can and always trust yourself. “
This article was first published on SingSaver.com.sg. All content is displayed for general informational purposes only and does not constitute professional financial advice.
