Having been raised in a world where women are doing their best to carve out a career for themselves in every possible field, I feel amazed when I see them coming home from a hard day’s work to be those perfect mothers to their kids. And how beautifully do they nail both the roles! – One of being an independent woman who is smart enough to rule the world and the other of being a lady who takes it in her stride to be the strength of those who are emotionally dependent on her. And when the time comes to have her priorities sorted, she has got the strength to give up her career in order to become a stay-at-home Mom to raise her family.

Many women never choose a career at first place only to take care of their family and home.  Whatever be the case, being a housewife is totally a matter of choice and it comes with its many perks and challenges, first one being the limited personal finances.

Personal savings, when you’re a stay-at-home Mom, is limited to the money that has been lying in your salary account since you left your job or the one that you have been saving month-on-month out of your family’s budget. As a housewife, you often find yourself looking for places where your money can be kept safe or, even better, earns you some more money out of it which can fund your future goals.

Limited earnings often limit the areas where it can be invested. After all, not everyone has money enough to save for buying a property which can bring in monthly rent. That’s when you want to gain access to the investment avenues where your small but valuable savings can earn you returns. In order to know which of the following investment areas is appropriate for you, it’s important that you determine your long term financial goals along with an idea of how you want your future to look like when it comes to your personal finances:

1. Invest In Stocks and Other Investment Plans: Stock market is one of the most lucrative investment avenues you can think of. Stock market is the place for everyone, from those with little savings to the ones who invest heavily and have become millionaires just by making some smart investment decisions.

As a housewife, you can always make use of this option to put a certain percentage of your savings into the stocks which carry a long-term value. It sure carries risk which is why it becomes important to invest smartly. One must keep in mind a set of facts before shedding out that hard-earned money to be invested in the stocks:

• Don’t put all your eggs in one basket: Never go on to invest all your money in just one stock or even in just one sector. Also, diversify your investment portfolio to make space for stocks, SIPs, bonds, recurring deposits and mutual funds. This is the best way to manage your risk and earn good returns.
• Understand your cash flow: It is extremely important to understand your cash flow, spending patterns and lifestyle before putting your money in investment plans which require continuous deposits. Having been a stock trader for a while now, I have learned that it’s always good to invest after considering your risk appetite.
• Study before investing: Study the available investment plans before investing your hard earned money in them. Take an online investing course or read a book to get that basic investing knowledge. The best way to go, if you’re too risk averse, is to look for an advisor who can guide you through your decisions for a small fee.

*I’m totally a stock market person – the one who is kind of addicted to it, yet there’s a lot I need to learn. Stock market can earn you many times the amount invested but the risk factor, without a doubt, is inevitable here.

2. Self-Investment: If making money isn’t the sole purpose you want to live for, the best investment you can make is the one in developing new skills. There’s no investment better than investing in oneself thereby earning money from that investment. Be it designing, crafting, stitching, culinary skills, an academic degree or blogging for that matter, learn something that makes you feel secure of yourself and that’s worth the little time you get from your family every now and then.

3. Get A Hybrid Savings Account: If you’re too risk averse and don’t want to put your money in the risky stock market, there’s always an option of earning a better return on your savings by investing your money in a hybrid savings account (instead of going for a regular savings account paying a small amount of interest).

4. Invest In Gold: ‘How’s that supposed to be an investment!?’ If this was your reaction after reading the sub-head, I can totally resonate because that would have been my reaction too had I considered the hefty making charges that come along with buying gold ornaments. But gone are the days when gold was bought as a safety measure against its ever rising rates. Gold can be that bright spot on your investment portfolio if bought in the form of coins/bars depending upon your savings. Considering the phenomenal value it carries, investing in gold in the form of coins or bars is a great way to avoid the huge making charges and to make the best use of its ever-shining value.

5. Build An Emergency Fund: You may not need the money today because your expenses might be taken care of, but you might suddenly need it in future. Having an emergency fund shall be the foremost priority of every household considering the shadow of uncertainty that walks behind us. You must develop a basic emergency fund to be prepared for the unforeseen circumstances and keep it untouched unlike your savings account. Emergency fund protects you against the unfortunate circumstances like job layoffs, sudden monetary needs and other unforeseen situations. Emergency fund is a great way to ensure, even as a housewife, that you’re thinking long-term.

Have a question or a comment? Feel free to send me an email at richi@askmisswhimsical.com or drop a comment down there. I would love to hear anything from you.

Happy investing!