In my 20 years as a financial advisor focused on high-income women, I’ve seen how the common habits of mothers making over seven figures help them not only earn high incomes, but also invest and grow their assets and wealth.
Advice from a Millionaire Mom
In my experience, high-income moms:
- Maximize their tax strategy
- Don’t let your kids drain their finances
- Don’t show off your high income
- Know that time is money
- Understanding mental health is important for wealth building
- Watch costs climb
- Stick to the investment path
- give with joy
- Increase savings as salary increases
- protect their assets
1. Millionaire Moms Maximize Their Tax Strategies
High-income moms realize that their tax bill is their largest expense over time, and they focus on maximizing their tax strategies with the help of a financial planner.
2. Millionaire moms don’t let their kids drain their finances
Wealthy moms’ high incomes make it easier for them to afford high college tuition or buy a decked-out Ford Mustang, but they know that such spending may not be best for their children. Instead, they focus on teaching them hard work, money management, and frugality.
3. Millionaire moms don’t show off their high incomes
In Texas, there is a saying: “All the hats, no cows.” Smart, high-earning moms focus on making money and investing, not showing off.
4. Millionaire mom knows time is money
High-income moms value their time—delegating household and professional tasks and seeking expert boards in various fields. They know that DIY is fun but may cost them in the long run.
5. Millionaire moms understand how important mental health is to building their wealth
High-income moms realize that the energy spent taking care of their mental health creates more room to adjust their long-term financial plans.
6. Millionaire moms’ expenses keep rising
Expense creep is when your income gradually increases, and so do your lifestyle and expenses—often without you realizing it.
But not so for these high-income, wealth-conscious moms. As their incomes increase, wealth creation gurus deceive themselves psychologically. They pretended they had no extra money, but they invested it wisely. They won’t touch it – it’s all left to them. They are happy to see their wealth growing.
7. Millionaire mom sticks to investment policy
These moms work hard for their money and value their advisors’ expert advice to help them develop thoughtful, long-term investment strategies. These moms don’t chase today’s “hot” investments or invest in their friends’ get-rich-quick business ideas.
8. Millionaire moms give joyfully
Moms making more than $1,000,000 find that the more they donate to charity for the greater good, the more fulfilling they feel.
9. Millionaire mom increases savings as salary increases
These high-income moms realize that maxing out their 401(k)s won’t provide them with what they want in the future. They exceed these maximum limits in other investments, and the smartest among them do so in a tax-efficient manner.
10. Millionaire mom protects her assets
Savvy high-income moms protect their wealth. One big event in life can destroy the entire accumulation of wealth: disability, job loss, death. These mothers must purchase adequate disability income, life insurance, and long-term care insurance—adequate levels until they are able to self-insure (meaning have enough cash to cover these uninsured events).
Molly Ward offers securities through Equitable Advisors, LLC (NY, NY 212-314-4600), member FINRA, SIPC (Equitable Financial Advisors of Michigan and Tennessee). Investment advisory products and services provided through Equitable Advisors, LLC, an SEC-registered investment advisor. Offers annuity and insurance products through Equitable Network, LLC. Equitable Network does business in California as Equitable Network Insurance Agency of California, LLC, in Utah as Equitable Network Insurance Agency of Utah, LLC, and in PR as Equitable Network of Puerto Rico, Inc. business. Please note that this article is not intended to constitute investment, legal or tax advice. PPG- 6688640.1 (6/24)(estimated 6/26)
