Whether you’re doing it as a hobby or a full-time career, investing can be a rewarding experience. Not only does one stand to profit from the ups and downs of their chosen financial market, but they can also do so without even having to put on the 9 to 5 grind.
Such lifestyle is tempting to most if not all people, but it’s an especially fitting one for stay-at-home parents who can neither commit the time nor the energy to pursue a career outside their humble abode.
Here are five things to remember when investing as a stay at home parent.
Mind Your Capital
Unlike investors who do not yet have a family of their own, parents have several expenses to consider. The smallest accounting errors in their personal finances can lead to financially catastrophic consequences for their family’s lifestyle.
For instance, if you allocate too much of your monthly paycheck into your investment account, this can prevent you from paying off your credit cards and utility bills on time, which accrue interest and affect your credit scores.
Before investing your first dollar on any financial market, zero in on how much disposable income you can invest.
Establish an Office
In today’s digital age, you really only need a computer or mobile phone with stable internet connection to start investing your own money. Gone are the days when profitable investing was clouded by unnecessary red tape and where the industry was dominated by well-funded groups and their supercomputers.
Unfortunately, the leniency in today’s investing requirements have also made investors indifferent when it comes to their environment.
Avoid the noise from your neighbor’s dogs or your children running around the living room by designating a personal space for your investing activities. Compliment it with proper lighting and ventilation.
Being in a comfortable and calm environment puts you in a better mindset to handpick new assets to add to your portfolio and manage existing ones.
Find the Right Investing Style
As a stay-at-home parent, you likely have more time to check and manage your investment accounts than, say, someone who has a full-time job outside the house. You can try your hand on scalping the markets during volatile times, yet it’s also a very risky strategy and one that a beginner should try to master first on a smaller account or a demo account.
Aside from time frame, you should also figure out what industries to focus on. It’s strategically sound to focus on one or two industries first rather than try to spread your resources too thin.
Technology, healthcare, banking, and consumer goods are some of the larger spaces that you can start investing in.
Choose a Good Broker
A good broker to fulfill your transactions in an orderly and timely fashion can play a pivotal role in your success as an investor. Brokers charge different commissions per roundtrip transaction and also have slightly different assets you can trade, from stocks, bonds, commodities, currencies, and so forth.
In addition to these notable differences, you may also find the minimum account requirements and privileges to be different from broker to broker.
The screening process can take some time, yet being meticulous can save you money over the long haul. A worthwhile broker to test the waters with is Robinhood, which is a relatively nascent brand in the arena.
Work Out Your Schedule
Now that you’ve worked out how much you should invest in and what platform to trade with, you’ll want to work out a schedule that best suits your personal and professional life.
As a stay-at-home parent, your daily schedule will be greeted by household errands, school meetings, and other adult responsibilities that may fall on your lap.
Investing as a stay-at-home parent is more challenging than it seems. It’s up to you to use the limited amount of time you have to take care of the home while also digesting the information that financial markets give you.
By: Andrew Altman