Five Smart Choices Financially Empowered Moms Make

I’ve become “Internet Famous” for saying “a man is not a plan.” But this wise phrase didn’t just come to me in the shower. 

I learned this lesson the hard way when I became suddenly single as a mom of two toddlers. I was homeless and thought myself hopeless and helpless.

I couldn’t argue with my facts: I didn’t have one cent to my name, or a bank account, I didn’t have a car or know how to drive, and I didn’t know what to do from there. 

But the truth is that no matter where we are or where we’ve been, we always have the power to choose where we are going.

So today, I invite you to make an important decision: become a financially empowered mom.

How to Become a Financially Empowered Mom

Becoming financially empowered means that you learn to manage your money before it manages you. 

Financial empowerment has nothing to do with how much money you make. Most money issues are caused by financial mismanagement, not by a lack of money.

It all starts with our mindset, because our thoughts and emotions will influence our choices, and our choices will impact our results.

As moms, we have a lot on our shoulders, whether we stay at home, work at home, or work outside the home. Our children rely on us to nurture and protect their physical, emotional, and mental health. 

Motherhood can be exhausting and money management can often take the back burner; however, keeping our children safe requires that we keep ourselves free of financial strain.

When I decided to become a positive mom, I resolved to never neglect my finances. That choice has assured that my children have the proper shelter, nutrition, and education, even as a single mom and sole parent.

5 smart choices for financial empowerment

These 5 choices will help you manage your finances in a way that empowers you so that you have a strong foundation and a smart plan!

1- Cultivate Confidence.

Many stay-at-home moms leave the finances up to their husbands and don’t get very involved. I’ve done this before. I had these false beliefs about the man being in charge and the man being the provider that eventually put me in a very tough position.

Family finances must be managed by the family. There are appropriate ways to involve the children, even at an early age.

If you’re a stay-at-home mom, gain the financial confidence you need by asking money questions and weighing in when money decisions need to be made.

If you have a career, whether you work at home or outside of home, or are an entrepreneur, you must understand what your contribution is worth. 

Researching salaries or fees that properly represent your abilities, skills, and capabilities is the first step to earn what you deserve. Be willing to negotiate until you know you are being fairly and generously compensated for the value that you bring. 

As women, we sometimes suffer from imposter syndrome, which adds to the multiple socio-economic challenges of being a woman in the financial world. 

The  U.S. Bureau of Labor Statistics tells us that the wage gap between women and men is still wide and it widens when it comes to women of color. It’s no surprise that the workplace is harder for moms than for women who have no children.

2- Become Financially Savvy.

It’s hard to make sound decisions unless you know your options. Learning financial terms, doing your research, and becoming educated about finances will pay off. 

When seeking advice, make sure you find a trusted, unbiased source and that you are making objective decisions with both present and future implications in mind. 

Financial literacy is the ability to understand, develop, and use your financial skills.

Become familiar with concepts like compound interest, credit scores, taxes, investment, and more! When you can understand the lingo, it will seem less scary.

3- Become Aware of Your Money Habits

Living within your means is essential for financial empowerment and basic budgeting can help evaluate your money habits. 

A budget, or spending plan, is a great tool to know how much money consistently comes in, how much you are spending, and how much is available after expenses are paid off. 

I love analyzing my budget because I can make fact-based decisions, like when and where I can cut back. 

Budgeting is key to financial wellness because it can help us avoid impulsive or frivolous purchases that we may regret or may even jeopardize our ability to provide for our family.

With the help of our budget, we can practice self-discipline and self-restraint and avoid instant gratification.

4- Protect Yourself 

As a mom entrepreneur for 17 years now, I have learned that one of the most important rules of self-reliance is to put away a portion of your earnings first. I tithe 10% of my earnings and save 10% before I pay off any of my bills and financial obligations.

When you save consistently, your money can grow as compound interest is earned over the years. Also, having an emergency fund can be a saving grace – pun intended. 

When I became pregnant with Elydia, the impact on my mental, emotional, and physical health caused me to cancel my speaking engagements, events, and much of my work from home. Shortly after, the world crisis impacted my business, too.

Thankfully, I was able to survive months without work with my emergency fund. Many times, we can’t predict or change our circumstances, but we can manage better when we are prepared.

And speaking of preparation, a woman’s lifespan is typically 8% longer than a man’s. Even if you have the blessing of a financially helpful, generous, and stable husband, you may end up managing your finances on your own anyway. Saving for retirement is a must and it will bring you peace of mind.

As moms, we also think of making higher education possible for our kids. I have a junior in college and a senior in high school, so I can say that it comes quicker than you think! 

Just like we have medical insurance for the children (and ourselves!), we must have proper homeowner’s insurance, car insurance coverage, and life insurance to protect ourselves and our assets.

5- Be Smart About Debt

Many people will tell you that debt is the devil. Uncontrolled debt can crush your desires for financial security and even threaten your health because of toxic stress.

Let’s talk about healthy debt.

One strategy to manage debt is to add it to your monthly budget so you can pay it off easily and effortlessly. Whether you prioritize paying off the debts with the highest interest rates first (avalanche method), or the smallest amounts (snowball method), taking care of your creditors is a cardinal rule of personal finance.

I remember when I bought my first car and did not know anything about car loans. I had just learned how to drive and was fairly new to the country!

Sadly, I said yes to really high-interest rates and didn’t even know refinancing was an option.

Refinance your car loan using Gravity Lending

Refinancing your car loan may be a smart choice when you do it the right way.

I recently learned about Gravity Lending and was really excited to partner with them to share about their service. Not only does Gravity Lending connect you to the lowest cost auto refinancing loan, but they do not charge you for their services. 

Gravity Lending is a fintech company with over 100 years of financial services experience, considered the highest-rated car refinance company in today’s market  (4.9 average review score and A+ Better Business Bureau Rating). Their team has funded over $7 billion in loans, customized to their personal needs and situation, without charging customers for these specific services.

Their easy application process and education component sound absolutely ideal for moms who want to make empowered choices when refinancing a car loan. 

7 benefits of refinancing your car loan through Gravity Lending

Working with Gravity Lending can help auto refinancing be more enjoyable and effective, as you’ll experience:

1. Working with a dedicated loan officer
2. Fast, easy, and secure process
3. 90 days No Payments
4. Compare offers nationwide with one application to find the best rates, terms, and conditions available
5. No charge for services
6. Rates as low as 1.99%, average monthly savings of $134
7. Loans fund in as little as 5 days

If you are looking for auto loan refinance, personal loans, Guaranteed Asset Protection (GAP), Depreciation Protection, Vehicle Debt Protection, Vehicle Service Contract (VSC), check out Gravity Lending today. They have saved their customers over $17.3 million dollars in the past year. 

As you become a financially empowered mom, remember to pay it forward by supporting, encouraging, and becoming an advocate for other moms. It makes such a difference!

What financially empowering habits do you follow? Share them with us in the comment section below!

Elayna is a single mom of 4, award-winning Storyteller, Story Strategist, and Student of Pain. She’s a bestselling author, internationally acclaimed keynote speaker, and 4x TEDx speaker. Founder of the Positive MOM® and creator of the S.T.O.R.Y. System: a blueprint to craft and share powerful stories that will transform your results, so you can have the wealth, opportunities, and freedom you deserve. Connect with Elayna Fernández at thepositivemom.com/keynote-speaker and follow @thepositivemom. To receive a gift from Elayna, click HERE.

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