How to Know the Best Way to Build Wealth as a Parent
The best way to build wealth
Knowing the best way to build wealth, may often feeling like being the best penny pinching parent on your block.
Or, knowing all the best hiding places in your home to stash a midnight candy bar.
After all, financial goals during the parenting chapter focus mainly on paying the necessary bills or covering extracurricular activities.
And wealth...well, it’s often the leftover Halloween candy you munch on after your child’s bedtime.
Yet, the best way to build wealth as a parent is to let your kids do the influencing.
Of course, they are at the center of your personal finance endeavors already.
But, think more long term and outside the box for a moment.
Your children impact nearly every decision you make already—grocery shopping, home decor, personal style, etc.
However, being more aware and deliberate about those micro-decisions might lead you to a pot of gold at the end of your parenting rainbow.
Here’s how to know the best way to build wealth as a parent without having to couch dive for quarters (or Cheerios).
Start a Side Hustle Based on a Parenting Goal
Hundreds of business exist because parents allowed their kids to influence their professional endeavors.
Even without a lot of money to launch a business, many of these parents have increased their cash flow and have managed to build wealth over time.
For example, plenty of moms and dads turned entrepreneurs have transformed the business of blogging into a steady stream of income.
The key is to find your sweet spot or area of expertise and claim a part of that niche online.
Pay attention to the subjects your other parenting friends ask you about.
For example, are you the go-to recipe king or queen?
Or, were you a top-notch athlete in your day?
Are you an epic financial advisor always saving money for people by couponing or landing unknown deals?
Take a look at what you do for your family that would benefit other families across the nation or even globe.
You don’t have to be certified or even a professional.
The most important thing is that you can open up the topic for other people to explore in their own lives.
Keep in mind that blogging is just one slice of the pie.
You could dabble in Etsy, reselling on Amazon, provide childcare in your home, start a money-saving club, etc.
There are infinite possibilities.
The key is to harness a current parenting goal and expound on that across the world wide web.
Get Creative with Your Investment Accounts
Playing the stock market is something that many parents only dream about.
Perhaps, in your mind, investing is reserved for the high rollers like Warren Buffet or Bill Gates—both multibillion-dollar investors.
The trouble with investing is that it comes across as complicated and slightly boring.
Sure, the money-making part is fantastic, but knowing the best way to build wealth via the markets might seem tricky.
This is where your children’s influence comes into play.
Warren Buffet mainly bought stocks through Berkshire Hathaway and now has more zeros in his net worth than Cheerios in your couch.
So, let your kids help you to get creative as you start investing.
Think about the items that you use on a daily basis or consistently purchase—a certain brand of tennis shoes, household cleaners, or even the aforementioned Cheerios.
These are the stocks that you should be buying.
Understand that you probably have the opportunity to stomach risk in the market, so your asset allocation can be a little more aggressive.
Meaning, you don’t necessarily have to play it safe.
Choose from your trusted brands and companies or take investing advice from the experts, then download an investing app such as Fidelity or Robinhood to start your portfolio.
Let Your Child’s Age Guide Your Insurance Policies
It’s not uncommon for parents to use their insurance policy as a Roth IRA or one of their retirement accounts.
In fact, whole life insurance is often marketed in this way.
The pitfall is that most parents don’t need lifelong savings accounts of this caliber...at least, not one with a hefty price tag.
Financial guru Dave Ramsey loves to explain life insurance, and absolutely lives to preach why whole life insurance isn’t the best way to build wealth.
The bottom line is that, although you need life insurance, your policy needs change according to your children’s ages.
For example, you really only need insurance for as long as you are providing for your children.
This puts an affordable 10-, 20-, or 30-year term life insurance policy more in perspective.
Furthermore, children require different expenses at different ages, so it’s vital to land a policy with this in mind.
Should something happen to you, it will be your life insurance policy providing for your family.
Term life insurance is commonly overlooked as a way to build wealth because it doesn’t have an investment component.
Yet, the premium savings combined with a vastly larger payout undoubtedly puts it in the wealth-building category.
According to Investopedia, the best way to build wealth is to make it, save it, and invest it.
And a good place to start is by letting your children influence your overall financial plan.
Take the Next Step
Building wealth may seem impossible as a busy parent.
But, we can help!
To support you as you safeguard your family’s financial security, I’ve created an up-to-date guide for parents who need life insurance here.
My guide can help you with your long term life insurance goals, especially with little kids at home!
Here at CB Acker Associates, we want to help you take care of your family.
If you’re ready to find a policy that fits your needs and your budget, we can help!
With access to all the top rated life insurance companies, we work extra hard to get you the best life insurance rates possible.
You can even compare rates and benefits from over 40 providers with no obligation to buy here. Plus, it’s fast—under 60 seconds kind of fast.