Financial Fitness for Empty Nesters
As the stages of our life unfold, some with a bang and some with a whimper, our mindset for happiness must also evolve. My third and final child will graduate from high school on June 25th. I was talking with a friend this week who, 18 years ago opened her front door to a 1- & 2-year-old sitting on her front porch, still strapped in their baby seats, as we were backing out of her drive to get me to the hospital for number three.
My friend, who also has 3 kids, has been a stay-at-home-mom for 22 years and she asked the question, “Can I still be a stay-at-home mom when my children are all out of the house.” My immediate answer was yes, but it got us talking. She is trying to figure out what to do with her life once her last child, who is 16, leaves the house. I am doing the same.
Our lives for the last 22 years, whether we were working or staying at home, has been consciously and unconsciously consumed by decisions based on our children’s needs. Specifically, the more children the more decisions, the more worry, the more time spent thinking about what’s best for them. The funny thing about “empty nesters” is that although the kids may move out, they tend to have bigger issues that their parents continue to worry about, but the physical aspects of the small every day decisions are gone.
I am 51 years old. Most of my friends in my parenting position are a similar age. We have the opportunity for years’ worth of life left. So, I go back to the question I hear often that concerns what we do with our next stage in life. One woman I know wants to work part time in a bakery. Another woman is interested in starting up a philanthropy. A third doesn’t have any idea but as we talked, she got excited about possible opportunities.
We are not old enough to retire and don’t want to. But in order to make smart decisions on what to do moving forward we need to understand how to use our hard-earned assets in a way that brings us happiness and security. Most of my friends will easily live into their late 80s. That is another 35+ years of living and we want to do that-not just survive.
As mentioned above, moms spend a great deal of time dealing with children’s opportunities and issues. Now is the time for women to step back from their children and start concentrating on themselves. One of the best things they can do is take an active role in the household finances, not just the household budget but the investments that are taking place.
In our society, we are projected to outlive the men in our lives and should therefore have a good idea about how we can fund the time we have left both with and without them. Losing a loved one is hard enough, but when you are suddenly thrust into unfamiliar financial decisions, the situation is compounded with confusion and indecision.
So, if you can relate to this scenario, which many women can, try implementing a few basic things that would set a stable foundation for the rest of your life:
Think about what you want to do in the next stage of your life
Make sure you know what all your household assets and liabilities are and how to access them.
Do a cashflow analysis (budget) with your significant other
And decide how you can get to where you want to be
Any questions contact me.