VI Blog

Is investing suitable for parents?

16 Jul 2021

Investing for Parents | Pauline Teo
(c) Sadie Xiao

“Hey, Pauline! I want to invest, I really do, but I don’t have the time!”

There is no class where I don’t hear this concern from parents in my audience. Every single time, they raise being busy with their jobs and as parents as a hindrance to their taking action to invest. And every time, I tell them quite frankly: “Never use busyness as an excuse for your financial irresponsibility.”

I know it’s harsh. But harsh realities need to be told, especially when it boils down to securing our own and our children’s future.

Wouldn’t you want enough money to send your children to university? Wouldn’t you want to have enough retirement funds so you can do all things you want to do without being a burden to your kids?

So, let’s correct this thought from hereon.

Time is not and should not be a limitation in investing.

Investing is also for parents

Investing knows no age, civil status, or education background.

Take me as an example. I am a parent to two kids and I have a full-time job. Yet, I still invest.

When I was just starting to invest eleven years ago, I was in the same situation. At the time, my kids were still very young and needed my full attention. Plus, I didn’t have a helper with me.

My point is if you’re really determined to start, you’ll find the means to do so.

What we need to strive for as parents is a passive income that continuously flows even though we are busy with parenting and our professional careers.

When we say passive income, it means the money we earn which does not require a lot of our time or effort. There are many ways to generate passive income as parents. You can invest in a property, sell items, rent your unused space at home or your equipment, explore dropshipping and affiliate marketing, or do a passion project. And you can buy stocks -- which is what I personally do and has been my constant source of passive income in the past decade.

It actually doesn't matter which investment option you choose, as long as you invest your money. Don't put it off for the next year, because time is your friend when it comes to investing (I'll discuss this below). You'd want to start as early as possible.

Why should parents invest

You’ll probably ask why you should invest when you can just save your money in the bank. “At least it’s just there and I don’t need to do anything,” you’ll probably tell me. That is exactly the problem!

When you just put your money in the bank, it’ll just stay there – idle and unmoving. The interest you’ll get will be less than 1%, which is not even enough to be a hedge against inflation.

Don’t get me wrong. You should, of course, save money in the bank. I’m saying you can invest some of your it so it can grow over time.

And you should start as early as possible because time is crucial in investing. We’re looking at what we call a compound return, which Albert Einstein even describes as “the most powerful force in the universe.”

But before you start, you must know there are risks in investing – whichever investment option you choose. Even when you just decide to put your money in the bank, there are still risks. What I can recommend is for you to have a diverse portfolio so you can brace yourself against any downturns.

Here are the top reasons why parents like you and me MUST invest:

  • We need it to send our kids to good universities
  • We need it to have a comfortable retirement
  • We need to protect our wealth
  • We need to have something to use in case of emergencies

When and how can parents invest

Time, once again, enters the equation. Investing earlier will afford you to take more risks because you’ll still have enough time to rebound whenever an investment dives. But as you delay investing, you’ll have fewer opportunities than when you’re younger.

I would also recommend investing in stocks that pay dividends which are usually paid monthly or quarterly. This way, you’ll get consistent passive income while you hustle with your day job and your parenting tasks.

Through all these, you need to seek proper guidance. It’s not recommended to do investing alone. You should do it with someone who can teach you to succeed. Find a community that extends support to parent-investors like yourself.

And I hope one day I’ll see you at one of my classes and proudly tell me, “Hey, Pauline, I’m a parent with a full-time job and I am an investor!”

Join me in my FREE investing masterclass on creating passive income for families! Hope to see you there!

~ Pauline Teo


This article and its contents are provided for information purposes only and do not constitute a recommendation to purchase or sell securities of any of the companies or investments herein described. It is not intended to amount to financial advice on which you should rely.

No representations, warranties, or guarantees, whether expressed or implied, made to the contents in the article is accurate, complete, or up-to-date. Past performance is not indicative nor a guarantee of future returns.

We, 8VI Global Pte Ltd, disclaim any responsibility for any liability, loss, or risk or otherwise, which is incurred as a consequence, directly or indirectly, from the use and application of any of the contents of the article.