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As a busy mom myself, I know that there are a lot of things to worry about, and the last thing on your mind is probably building a successful investment strategy. 

Undoubtedly, your kids come first (and rightly so), but it is still important to consider the health of your finances and the goals you have for your financial future.

Perhaps your goals include achieving a FIRE lifestyle, as in financial independence, retire early. Or maybe you want to simply save for your children’s education.

In any case, you’ll want to build an investment strategy to support your financial goals, and in this article, I’m going to give you 5 simple tips that you can immediately use to support a healthy financial future for yourself and your family.

5 Simple Tips for Building a Successful Investment Strategy

Here are a few tips to help you build a successful investment strategy:

1. Start as early as possible. 

The earlier you start investing, the more time your money has to grow. Since it integrated a model that followed 500 company stocks, the S&P 500 averaged a return of roughly 10%.

An average return of 10% outcompetes savings accounts and is higher than today’s standard interest rates. However, a note of caution, you’ll want to keep in mind that 10% is only an average. There have been years where the return was negative, so if you plan on investing in stocks, you’ll need to be able to stomach the inevitable heartaches.

Also, if you haven’t started investing yet then there’s no need to stress! I know what it’s like when finances are tight and sometimes it feels like you’re just barely making ends meet.

Even if you can only invest a small amount each month, it will add up over time.

2. Set realistic goals. 

What do you hope to achieve with your investments? Are you saving for an early retirement? A down payment on a house? A child’s college education? What goals will your new investment strategy support?

Once you know your goals, you can develop an investment strategy to reach them.

Psst… if you need a handy tool to help you keep track of the progress you’re making toward your goals, I recommend using ClickUp.

3. Diversify your portfolio. 

You’ll want to spread your money out across different types of investments, especially when you’re first starting out. Consider a healthy variety of stocks, bonds, and mutual funds. This will help reduce your risk.

Psst… if you’re looking for some initial ideas about which stocks to start investing in, I recommend reading The Bogleheads Guide to Investing.

4. Rebalance your portfolio regularly. 

As your investments grow, you’ll need to rebalance your portfolio to make sure that it still aligns with your goals. This may mean selling some of your winners and buying more of your losers. Or even vice versa, depending on your goals.

5. Don’t panic. 

Remember what I cautioned you about when it came to average returns? The stock market will go up and down. But if you stay calm and stick to your investment plan, you’ll be in good shape in the long run.

Investing can be a daunting task, but it doesn’t have to be. By following these tips, you can build a successful investment strategy that will help you reach your financial goals.

Additional Tips

Here are some additional tips for moms who are just starting out in the world of investing:

Talk to a financial advisor. 

A financial advisor can help you create an investment plan that is tailored to your specific needs and goals.

Read books and articles about investing. 

There is a lot of information available about investing. By reading books and articles, you can learn more about the different types of investments and how they work.

Psst… if you want to understand the ins and outs of stock market investing, I recommend reading A Beginner’s Guide to the Stock Market.

Start small. 

You don’t have to invest a lot of money to get started. Even if you can only invest $50 per month, it will add up over time.

Be patient. 

Like with a lot of things, investing is a long-term game. Don’t expect to get rich quickly. Just keep investing regularly and let your money grow over time.

With a little planning and effort, you can build a successful investment strategy that will secure a healthy financial future for you, and your family.

Think building a successful investment strategy will FIRE Your Life? Check out the posts page for more ways you can FIRE Your Career and achieve financial freedom.

FIRE Your Career: Achieve Financial Freedom Through Your Career & Spend MORE Time Doing What You Love.

Recommended reading:

5 Simple Tips to Help You Start Investing in the Stock Market

Products I recommend in this article:

ClickUp (my recommended project management tool)

The Bogleheads Guide to Investing (best intro to investing book I’ve read)

A Beginner’s Guide to the Stock Market (advanced / comprehensive investing book)