The Beginners Guide to Investing Money
As a stay at home mum, and if you’re a single mum too, investing money may sound impossible, daunting and darn right overwhelming. Trust me, I get it as I had no idea once, however, time and effort to learn has helped me go from complete zero-knowledge beginner to now investing money as a stay at home single mum.
You don’t need to be a single mum for this post to be relevant. This post is for all you mums, no matter your circumstances. I know from experience, going from a married stay at home mum to a divorced single stay at home mum, making and investing money has been a huge lesson, and I can talk from both sides of the spectrum as a married and single mum.
Us mums have many differences and many similarities. Some mums want to stay at home and not work, some mums stay at home and work or build a business, some mums work part time or full time out of the house. What we all have in common is being a mum who has her family at heart.
When I became a mum I knew I wanted to be a stay at home mum and my (now ex) husband worked to cover our expenses so I could raise our child. Sadly, life changed and we divorced which meant I was a single mum. My desire to be a stay at home mum remained and I knew I had to start making money and figuring out what I can do to pay the bills whilst raising my daughter at home.
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What is the Best Investment for a Beginner?
The first and best investment as a beginner is making the decision to invest in yourself. It might sound silly and make no sense, and you probably want a mega money making machine answer to get started, however, the truth is you need to be willing to invest time, money, energy and commitment to investing money for the short, medium and long term.
Aside from investing in yourself, the best investment for a beginner is to save as much money as you possibly can weekly and monthly and put it into a separate account. This money will be used for investments which I will cover in this post, but you need money to invest, so you need to start saving money.
Struggling to budget? Download this free budget planner to get started!
I could give you an exact figure on how much money to save, but that is not realistic as I don’t know your current income and expenses. If income is low, focus on saving £200, then £500, then £800, then £1000, then £2000 etc. If you have a good income and have money left over each month, start managing your budget and save £1000, then £2000, then £5000 etc.
How Do Single Mums Invest?
I get it mama, if you’re a single mum, you might be thinking it is impossible to start investing money. I have been you and I am here to tell you it is 100% possible, no matter where you are starting with your finances.
When I got a divorce I had no idea about investing money and certainly didn’t think I would be able to start with the little income I had as a single mum. When I was married I was a stay at home mum not working as we had chosen for me to stay at home and for my ex-husband to work. Of course, circumstances changed and I was a single mum who would need to sort out my finances.
As I started getting my life back on track I had to figure out what work I was going to do and how I was going to pay the bills. I got back into freelance writing, built my blog, became a business owner as an independent consultant with Arbonne, became a forex trader, and this lead to investing money with stocks and cryptocurrency.
All of the above was a process, and it took time for each part of my business and work life to come together. It did not happen overnight and I am still in the process of building my business and income to the level of financial freedom I am aiming for with my financial plan. But I want you to know it is possible as a single mum to invest money.
Here are my top tips to invest money as a single mum:
- Write down all your expenses and income
- Cut out expenses you really don’t need (even when you think you need them!!)
- Create a simple budget and stick to it each month
- As you cut out certain expenses and budget the smart way you will start to see ways to save money over time
- Have a separate account to save money
- Start saving money each week, no matter the size, even if it’s £5 a week (you need to get used to putting money aside – VERY IMPORTANT!) – have that saved money go into the separate account on a direct debit
- Look for ways to earn more money
- Start saving extra money and put it into that separate account (again don’t worry about the number you save each time, sometimes you might be able to put £50 in, sometimes £300+, sometimes £10, just put extra money in that account)
- As that money builds start creating accounts with different investment platforms so you are set up to start investing
- Start forex trading and open an account with a forex broker. No idea how to do forex? Learn the beginner’s forex course here.
- Invest in stocks. Open an account with a stocks platform such as eToro.
- Invest in cryptocurrency. Open accounts with apps such as Coinbase and Crypto.com.
- Start putting money into these different financial investments.
Investing Money as a Single Mum
You don’t need a lot of money to get started. You can have as little as £5 to invest in an index fund stock such as the S&P 500 and let that money build. Of course, you won’t have a huge return, but your money will move over time. The idea is to get as much money saved as possible and use that money to invest in different places and not let it just sit in the bank doing nothing or building a teeny tiny weeny amount of interest.
Top tips for mums:
- Investing for Beginners
- The Single Mom’s Guide to Investing
- 10 Ways Single Moms Can Get Their Financial Act Together in 2020
As a single mum, I have often found myself get caught up in fear of taking responsibility of income without a man by my side. That’s the truth, and I am sure some of you single mums can relate too. I have grown up with a very old school approach that if a man and woman decide to marry and have a family, the man works and the woman raises the family at home. I am happy with that approach, yet getting a divorce kind of got in the way of that plan. Not everyone thinks this way, it’s all ok for however you approach life as a parent, partner and human.
My point is it has taken a lot of mindset work on money and myself to build strength in who I am whilst being mum. I still have a strong belief in the roles of man and woman as a family, yet testing my beliefs and character have been important over the last few years as I build my life up as a single mum. Can you relate to any of this? Or do you have a different belief on the roles as parents? All are valid and ok.
Tips for Success in Investing Money
The best thing you can do for investing money is to start. If you want a simple plan without a long list of tips, there it is, just start. Start investing money now, today, no more waiting.
The sooner you start, the sooner your money can start moving and building over time. Remember, investing money is not a get rich quick overnight plan. There are various ways to invest money and I currently do three strategies – forex, stocks and cryptocurrency. You could also do other investments such as real estate, gold and buying companies.
When you start investing money you will have many lessons, many ups and downs, you will lose money, and you will ideally profit if you have a smart plan and risk management put in place. Of course, the aim is to profit and be successful in investing, however, it is crucial to know that your money will go up and down, then down and up, and repeat, it is a part of the process and one you need to conquer with a strong mindset and confidence in the market and your financial portfolio.
Common Questions/FAQ About Investing Money
How Do I Teach Myself to Invest?
If you want to learn how to invest yourself without investing in a mentor, then you need to take your time and do solid research. Speak to people in the industries you are interested in investing, surround yourself with wealthy people, build a network of people who are learning or already doing investments, watch youtube videos from smart investors, read articles from investors (not brokers!), read books, listen to podcasts from investors.
Most of all, don’t wait to be perfect. Just start and you will learn from all your mistakes.
What Should I Invest £1000 In?
You have a few options on where you could invest £1000 to get started. If you are a complete beginner and want to get started, here are a few options:
- Stocks – put £500 into an index fund such as S&P 500, split £400 into 4 different dividend stocks (£100 each), split the last £100 into a few different stocks
- Cryptocurrency – join Crypto.com and put £800 into the Earn option by buying a stablecoin such as TrueGBP to receive 6-12% interest on your money, buy £100 worth of bitcoin and £100 worth of ethereum
- Forex – learn how to do forex with this beginners course
How Can I Start Investing with £500?
If you have £500 and you are ready to start investing money here are the best options for you:
- Stocks – put £500 into an index fund such as S&P 500
- Cryptocurrency – join Crypto.com buy £100 worth of bitcoin, £100 worth of ethereum, and then save £300 in a stablecoin or in the fiat wallet to save to put into the Earn wallet when you have enough money to qualify for the Earn wallet
How Much Money Should You Have Saved to Start Investing?
Save whatever you can afford. Stop thinking you can’t start because you’re not rich, that’s a crazy thought which is holding you back. Some people are born into wealth and some people started with little money and learned how to be wealthy.
You could save £5, £500, £5000, £500,000. It does not matter, the point is to start saving and get that money from your savings account into a source of investment.
The Last Thing You Need to Know About Investing Money
You’ve got this! I totally believe in you as I have been that single mum who had no idea how to invest and now I absolutely love investing and learning about finances.
The only reason it’s not working is that you are holding back. You need to build a strong mindset, prioritise yourself, remember your ‘why’ for earning more money, and commit to the journey.
Allow yourself to dream big and go big!
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