Get Financially Fit :: A Step-by-Step Guide for Moms

When I became a mom, achieving financial independence became one of my top priorities. I wanted the security of knowing that no matter what life threw our way, I could stand on my own two feet financially. Having a husband who is a total numbers guru—my own personal Dave Ramsey—was a huge advantage, but at the end of the day, financial independence wasn’t something he could hand me. Just like starting a new fitness plan or quitting a bad habit, I had to embrace it for myself. True commitment only happens when you’re ready. And for me, motherhood was the wake-up call that made financial security non-negotiable.

» » » » » »  RELATED READ: Steps We Took to Pay off 95k of Debt in Three Years  « « « « « «

Over the years, I’ve taken a deep dive into improving my financial picture. In my late teens and early 20s, I made just about every mistake in the book. Planning for the future wasn’t even on my radar—until I met my husband. Marrying someone so fiscally responsible was a wake-up call, but it still took me a few years to fully embrace that mindset.

Slowly, I started investing in real estate and the stock market, and as I watched our future take shape, my perspective shifted completely. Suddenly, the path forward was clear. With a few strategic adjustments to our spending, we began seeing even greater financial gains—faster than I ever imagined.

I love to learn from those around me that have achieved high levels of success. Surround yourself with people that have a growth mindset, people that are where you want to be and want to see you win.

Podcasts about investing and growing wealth have also me helped to broaden my horizons on financial freedom. I highly recommend the books Think and Grow Rich by Napoleon Hill and Influence: The Psychology of Persuasion by Robert Cialdini. These types of books have helped to grow my business as well as shift my mindset from limiting beliefs to knowing that when it comes to what you can achieve, there are endless possibilities.

Here is a step-by-step plan you can begin to implement today:

Step 1. Assess Your Income & Expenses

Step 1 is all about digging deep and really getting to know your finances on a molecular level. This means laying everything out—every dollar coming in, every expense going out, and every debt lurking in the background. It’s easy to avoid looking too closely, especially if finances feel overwhelming, but knowledge is power. Track your spending for a full month, categorize every expense, and identify where your money is actually going versus where you think it’s going. Look at your debts, interest rates, savings, and investments with full transparency. Only when you have a clear and honest picture of your financial situation can you start making intentional changes that move you toward financial independence.

✅ Calculate Total Household Income

• Include salary, bonuses, side hustles, child support, and any other sources of income.
• If income fluctuates, use a 3–6-month average to get a realistic monthly number.

✅ Track All Expenses

• Categorize them into Needs, Wants, and Savings/Debt Payments.
• Use a budgeting app (e.g., Everydollar) or spreadsheet to track spending.

✅ Reduce Non-Essential Expenses

• Cut subscriptions, dining out, and impulse spending where possible.
• Look for discounts on groceries, utilities, and insurance.

✅ Use the 50/30/20 Rule (Adjust Based on Needs)

• 50% Needs (housing, utilities, food, transportation, insurance)
• 30% Wants (entertainment, dining out, hobbies)
• 20% Savings & Debt Repayment (emergency fund, retirement, extra debt payments)

Step 2. Build an Emergency Fund

This is huge and so important. What would happen if your household had to rely on a single income for a time? How would you prepare? Life is unpredictable—job loss, illness, or unexpected circumstances can shake even the most stable financial situation. The key is to be proactive, not reactive. Start by building an emergency fund with at least three to six months’ worth of expenses. Financial security isn’t just about thriving when times are good; it’s about being resilient when challenges arise.

Goal: Save 3–6 months worth of living expenses.
Start small – Aim for $500–$1,000 first, then build up.
Where to keep it – A high-yield savings account (HYSA) for easy access.
Automate savings – Set up automatic transfers to your emergency fund.
Ways to build it – Sell unused items, use tax refunds, or deposit side hustle income.

Step 3. Prioritize Essential Financial Protections

Nobody likes to think about the catastrophic and that is because when the catastrophic happens, it happens out of the clear blue sky. We don’t know what tomorrow will bring, so it is so important to be ready for whatever that may be today. Thankfully there are ways to protect ourselves in those events. Job loss, injury, illness, or worse can strike at any moment. Part of a strong financial plan is being prepared for when it does, not if.

✅ Health Insurance: Make sure your family is covered to avoid major medical debt.
✅ Life Insurance: If others depend on your income, get term life insurance (10-20x your annual income).
✅ Disability Insurance: Protect your income in case of illness or injury.
✅ Estate Planning: Set up a will and power of attorney to ensure financial security for your family.

Step 4. Manage & Reduce Debt

Debt is the worst four-letter word out there because it can snowball and make those in the depths of it feel like there is no way out. The good news is that there is a way out. By implementing the following along with sticking to your budget every day, you can pay off your debt and be one step closer to financial independence. In the same way that debt builds up, you can pay it off using the snowball method.

List all debts – Include balances, interest rates, and minimum payments.

Pay off high-interest debt first (credit cards, personal loans).

Use the Avalanche or Snowball Method:

• • Avalanche: Pay off the highest interest first.
  • Snowball: Pay the smallest balance first for quick wins.

Negotiate lower interest rates on credit cards or refinance loans if possible.

Step 5. Save for the Future

Financial freedom has monumental benefits that future you is going to thank you for. Imagine sitting on a beach in your retirement knowing that your money is now working for you and not the other way around. That is not a daydream, this will be your reality, and saving and investing will take you there. Here’s how:

Home Ownership

• Save for a Down Payment – Aim for 20% to avoid Private Mortgage Insurance (PMI) which is an extra cost to you, but explore first-time homebuyer programs if needed.
• Know Your Budget – Use the 28/36 rule (housing costs ≤ 28% of income, total debt ≤ 36%).
• Improve Your Credit Score – Pay down debt, avoid late payments, and keep credit utilization low.
• Get Pre-Approved – Work with a lender to understand your buying power before house hunting.
• Factor in All Costs – Property taxes, insurance, maintenance, HOA fees, and utilities.
• Build a Home Emergency Fund – Have savings for unexpected repairs and expenses.
• Consider House Hacking – Rent out a portion of your home to offset mortgage costs.
• Think Long-Term – Buy in a growing market with strong appreciation potential.

Retirement Savings and Diversified Investments

• 401(k) or IRA Contributions – Prioritize retirement savings, especially with employer matching.
• Brokerage Account – Invest in a mix of stocks, ETFs, and index funds for long-term growth.
• Real Estate Investments – Consider rental properties, REITs, or short-term vacation rentals.
• Side Business or Passive Income Streams – Invest in small businesses, royalties, or online ventures.
• Bonds & Fixed-Income Investments – Provide stability and balance in your portfolio.
• High-Yield Savings & CDs – Keep emergency funds and short-term savings in accessible, low-risk accounts.
• Diversify Across Sectors & Asset Classes – Reduce risk by spreading investments across industries and types.
• Regularly Re-balance & Adjust – Review and adjust your portfolio to align with financial goals and market conditions.

College Savings for Kids (if Feasible)

• Open a 529 plan for tax-free education savings.
• Prioritize your retirement first—kids can take loans, but you can’t borrow for retirement.

This might feel like a lot, but small steps today can lead to big wins for your financial future. I have found that simply tracking every single dollar I spend and allocating every dollar that I earn to a specific expense helps me reel in the spending in a monumental way.

Tracking not only changes the way you spend money, it changes the way you view spending.

When you really sit down with your budget on a monthly basis to evaluate your spending for the month ahead, you are taking a proactive approach. It might seem tedious to track every expense, but spending is too easy and so is putting that amount in an app that will track it for you. It’s the accountability that really makes the difference.

Originally published January 2025.

The opinions expressed in this post are those of the author. They do not necessarily reflect the official policy or position of ABQ Mom, its executive team, other contributors to the site, its sponsors or partners, or any organizations the aforementioned might be affiliated with.