Investing when you have little money to spare can feel impossible, but it isn’t. When you are a single mom starting a retirement account is too often one of those things that you just don’t get around to.
My math major son started using Acorns when he graduated from college as a way to increase his investments without thinking about it. He started his retirement account at 18 and has told me that encouraging him to meet with a financial planner at 18 was the best advice I ever gave him.
If you already have a retirement account congratulations.
If you are investing 10% of your income and have an employer match double congratulations. Acorns can give you an automated way to save a little more.
If you are like most people especially most people on a single income and you fall short of this goal Acorns is a great way to get started investing or get you closer to the goal of saving 10% of what you earn.
As of this writing, Acorns is running a special deal where when you invest as little as $5 Acorns will add $25 to your account, so this is the perfect time to try it out.
STEPS TO FINANCIAL SECURITY
1. Believe reaching the goal of financial stability is possible. One of the ways that has made this easiest for me is to stop asking “Is it possible to have financial stability and financial security?” Instead, change the question to “How is it possible to have the finances to______. You fill in the blank with what your goal is. It could be anything. Here are some possibilities: take your kids to Disney World, take your kids to Europe, buy a house, retire by 50, quit your job and start a business.
2. Start doing something that moves you towards your big dream. Sometimes you will read that the next step is to make a plan and that is okay if you have the mental bandwidth to make a plan. The problem is when I’m looking a huge almost unbelievable goal in the face I often feel too overwhelmed to come up with a full-blown plan. I find it much more doable to start by doing something to take a small step towards my goals.
When financial stability or financial security or having a little money for the fun extras of life is your goal Acorns is a fantastic first step. After taking 3 minutes to set it up it will invest your spare change automatically and right now you will get an extra twenty-five dollars just for signing up and investing five dollars.
3. Be consistent by taking small steps towards your goal on a daily or weekly basis. Most important goals take many steps in the right direction to see results. You don’t see results after one trip to the gym or eating salad for one meal but after weeks of going to the gym and eating healthy you will be stronger and healthier.
Getting results with small consistent steps reminds me of raising children. Day by day it often seems like little is happening besides cleaning up messes, making food, doing laundry and being a taxi service. As slow as the days go by the years seem to speed by and when they are 18 and ready to leave it seems like only yesterday you were meeting him/her for the first time. The small consistent acts of parenting helped shape that baby into the adult he/she will be.
4. Make a plan. Once you get some momentum going by taking some steps towards making financial stability a reality take a step back and make a plan. To have more financial stability how can save more money or earn more money?
Remember having enough money for the fun extras, a secure retirement or helping your kids with college is like any other big goal. You need to believe you can do it and focus on how not if. You need to get started, take small consistent steps towards your goal and make a plan to make your dream a reality.
Hi, I’m Tamara the creator of Empowered Single Moms, a single mom, a Licensed Clinical Social Worker (LICSW) and the author of Thriving a Single Mom’s Guide to a Happy, Positive Life and Thriving a Single Mom Journal. I have a solo private psychotherapy practice where I treat anxiety, depression, and relationship issues.
As a member of the Empowered Single Moms community, I believe you can stop carrying the weight of the world alone and build a life you love. Join my mailing list and get 5 Keys to Single Mom Success.