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Investing is always challenging, no matter how you approach it. But a lot of moms are taking the initiative and looking for ways to make their money work for them. Much of what they’re doing is seeking out returns so that they can grow their wealth and take advantage of compounding effects. 

So what’s happening?

Leveraging Financial Education

One approach moms are using is leveraging financial education. They want to know as much as possible about how money works. 

Many working moms, for instance, are going on blogs and reading about how things work. They’re also looking at the risks and pitfalls of various strategies and incorporating these into their calculations. By the end of it, they are in a position where they are less likely to make mistakes. 

Maximizing Retirement Accounts

Another approach they are using is maximizing their retirement accounts. They’re doing everything they can to ensure that they take advantage of the tax savings available to them over time. 

There are two types of retirement savings accounts: 

1. Accounts where you pay tax today but not in the future

2. Accounts where you pay tax in the future but not today

Paying tax in the future is the better option if you think that returns will be good over the coming years, whereas paying taxes today is best if you think taxes will be higher. 

Buying Real Estate

Savvy moms are also exploring the possibility of buying real estate. Many want to work with an estate agency to find profitable projects in their area. 

Of course, buying real estate is something that takes time, research, effort and risk, but it is also something that can pay off significantly. 

Real estate is also one of the best approaches for passive income. What’s nice about it is that you can borrow and lever up, making a higher return on the cash you invest. You can also upgrade homes by buying them for less and selling them for more. 

Investing In Low-Risk Bonds

Another option is to invest in low-risk bonds. These instruments are ideal for moms who want to keep risks low and get a guaranteed payment from their portfolio every month. 

Investing in low-risk bonds is something that takes time to start accelerating. However, it can be an excellent way to make money and really drive passive income in the truest sense. Unlike real estate, bond dividends don’t require any additional work to obtain. 

You can explore the possibility of stocks and mutual funds if you want. These should offer a higher rate of return, adjusting for financial goals. 

Building An Emergency Fund

Finally, you might want to build an emergency fund in your savings account. These are essentially like conventional investments but in a more liquid form so you can meet expenses whenever you need to. 

These days, you can find all sorts of accounts with these options. These provide an easy way to earn a return even when you’re holding cash, allowing you to spend whenever you want.