Take The Risk Or Lose The Chance: Investment Opportunities For Single Moms | INVESTED MOM
You could spend all day scrolling through Twitter in search of inspirational quotes, but Marko Halilovic said it best. Take the risk or lose the chance. When it comes to plunging into an investment, at Invested Moms, we think truer words have never been spoken.
It’s never that easy though, is it? As a single mom, it probably isn’t in your nature to be a risk taker. After all, you have the responsibility of raising children and building your loved ones a secure future.
We understand you. But we’re here to tell you that some risks are just worth taking. Not just for your peace of mind, but for your little ones too. So, let’s discuss the multitude of investment opportunities out there and get you on the path to financial freedom!
1. Start simple with index funds
When you’re new to the wide world of investing, certain things can go in one ear and out the other. We’d say this is an important rule in most circumstances: don’t give it your money if you don’t understand it. The good news is, it doesn’t have to be complicated anymore. Providers have made funds available to beginner investors such as yourself.
Index funds are a very popular way to invest. They are brilliant for beginners wanting to dip their toes into the stock market. By purchasing and holding a diversified mix of assets, you can reach your financial goals without dedicating all of your time, energy, and money. Wondering where the profit comes from? Wonder no more:
Diversified to avoid major losses
Index funds pay dividends
No requirements or restrictions when withdrawing funds
Bankrate named Vanguard’s S&P 500 ETF as one of the best index funds. The graph below shows that if you invested $10,000 in 1995, it would look something like $170,000 in 2020. It’s simple, the company is a clear winner. Still, we cannot tell you where you should invest, so search for something that matches your expectations, budget, and goals.
Why do we recommend index funds to single moms?
If there’s a convenient and inexpensive way to build your finances, we’re here to make you aware of it. So, here it is. We should note that this method works best in the long term. Some advisors suggest holding for 5, or even 10, years. Below is why you should go for it.
Low cost. Since they are passively managed, you can expect index funds to have much lower management fees than actively traded funds.
They won’t take up all of your time. One reason people don’t invest is that they cannot commit to it. When you’re a single mom, you just don’t have enough hours in the day. This type of investment doesn’t require nearly as much research or analysis into individual stocks, so it won’t consume your free time.
You don’t have to invest all your life savings. These days, how much you choose to put in is up to you. In fact, you only need a small amount of money to begin with. Minimum investments are even being lowered by some fund managers.
2. Take up blogging
Running the home and working full-time, it’s likely that you’ll put a strain on your well-being and health. For single moms, part-time employment has an abundance of benefits. Therefore, have you ever considered transforming your beloved hobbies into a startup?
Any great entrepreneur invests in skills or passions that they already have and delights in learning something new. Blogging can be a perfect chance to do that. According to Financial Samurai, it is possible to make between $1,000 and $10,000 in your first year if you can publish strategic content 3 times a week. How, you ask? Here are a few ways:
Opening an e-commerce website and selling products
Offering your skills through consulting or coaching
Advertising and promoting businesses on your blog for a fee
For some inspiration, check out Alice Bull’s blog, More Than Toast. The single mom runs a blog for all things lifestyle: recipes, travel, and health. As a writer, she gets to invest in something that she loves doing through paid and sponsored posts.
Why do we recommend taking up blogging to single moms?
Becoming a blogger could be an ideal way to turn existing interests into a future profit. The investment here will be long-term. Keep writing, don’t give up, and you’ll see the benefits come your way. Here is some more motivation for your blogging side hustle.
Low cost, but endless opportunity. There are free sites where you can build your blogging empire, such as Squarespace, WordPress, and LinkedIn Publisher. Here’s our handy guide to blogging on LinkedIn, if you decide it’s the platform for you. When you don’t have to spend a fortune on resources, any money you make will turn a profit. You can then invest this into bonds or funds too if you’d like.
Calculated risks. It’s possible to stay on a free plan on most blog sites or upgrade to a paid subscription. How much money you spend on promotion and distribution is up to you. In summary, there are risks to take, but you don’t necessarily have to.
You don’t need to be an expert. Fear holds people back. Just like with the stock market, don’t be afraid of inexperience. If blogging is your hobby, then great. If it’s a new skill, that’s fine too. There are even free courses out there through businesses like HubSpot Academy, where you can learn as you earn.
3. Partner up with robo-advisors
Much like index funds, setting yourself up with a robo-advisor can be a user-friendly, simple, and passive way to invest. You’ll still have to handle the decision-making, but the management is automated. All you have to do is put your feet up. Okay, we’re sure you don’t have time for that, but it’s a nice thought anyway.
A report claimed the 5-year returns from most advisors range from 2% to 5% annually between 2017 and 2022. Being risk-averse won’t have the biggest payoffs, but if you invest regularly and stick to it long-term, you’ll see a profit. Below you’ll find out how.
Robo-advisors help you to avoid excessive fees
Low costs mean you have more to invest
They reinvest dividends into their investors' accounts
According to Investopedia, Wealthfront is the leader in this space and has been named the best overall platform. Conduct your own research to find a business that suits your needs, but we recommend choosing a trusted and reviewed platform.
Why do we recommend robo-advisors to single moms?
You won’t have to meet up with an advisor and wait for them to execute your trades, making it a good choice for those of us with busy lives. Take a chance on this opportunity and you’ll soon find your feet within the stock market.
Advice on the go. Investing can really drag you out of your comfort zone. Robo-advisors often partner with human experts. They will assist with goal planning, tax strategies, and financial advice to help you get the most out of your investment.
Smaller commitments. The management will be based on your financial situation, so you won’t have to worry about huge costs or big risks. Robo-advisors charge less than traditional managers and you can invest with however much you have to spare.
Your portfolio is maintained for you. Risk-taking gets a whole lot easier when someone else does the heavy lifting. Robo-advisors will use your individual data to rebalance your portfolio and support your long-term goals.
The rundown
There are life-changing opportunities waiting for you to grab ahold of them. Even better? They won’t cost you an arm and a leg. Remember, it isn’t just the biggest risks that make an impact. As long as you invest in what’s right for you, you’ll do fine.
Beginning your investment journey will be daunting, so set aside small amounts of money to reduce your anxieties. You don’t have to put it all in to be all in.
Join our community of smart, strong women here and on social media to uncover more tips and guides to ease your financial burdens. It’s time to wake up and create the future you’ve always dreamed of. We look forward to welcoming you with these new possibilities.
Stay Invested xx
Meet the Author:
Inge was born and raised in Cape Town, South Africa, and moved to Canada in 2010 looking for a better life. She always had an entrepreneurial spirit and started her first side hustle when she was 9 years old – selling fudge at school during lunch breaks.
It wasn’t until much later that she realized that saving isn’t enough to get ahead. She was always very interested in real estate, but saving up for a down payment was grueling and slow, and the demands of life kept getting in the way.
She started investing in herself and upgrading her skills while learning how to invest. She quickly became debt free and compounded her money at a staggering rate.
It wasn’t until she became a coach that she realized how significant an impact she can make in people’s lives by sharing her journey, learnings, and processes.
So here she is, advocating for everyone who is invested and wants to build their wealth, especially the mommas!