If you're a mom who spends most of her days rushing around and trying to juggle work life, home life, and everything in between, then you're no doubt in good company. But if that's the routine you tend to uphold, certain things might end up falling by the wayside, like your hobbies, sleep, time with friends -- and your investment portfolio.
The latter can be a problem, though, especially if that portfolio is meant to serve as your retirement nest egg or help you meet another major goal. If you don't have the time to dedicate to overseeing your portfolio, do these things instead.
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1. Use dollar-cost averaging to your advantage
Many people try to time their investments so they're buying stocks at a low price and selling at a high one. Not only can this be time-consuming, but it's generally a difficult thing to pull off successfully. That's why dollar-cost averaging could be a much better bet.
With dollar-cost averaging, you commit to loading up on specific investments at preset intervals. The upside is that you're not putting thought or emotion into the process -- you're simply sticking to a schedule that has you investing regularly. Over time, dollar-cost averaging could help you build a solid portfolio and accumulate wealth -- especially if you commit to holding your investments for many years.
2. Load up on broad market index funds
Don't have time to sit there researching stocks on an individual basis? That's understandable. If so, there's absolutely no shame in falling back on broad market index funds -- for example, loading up on index funds that aim to match the performance of an index like the S&P 500.
The beauty of index funds is that you're getting exposure to a wide range of stocks with a single investment. It's important to diversify your holdings, but that can take time. If time is something you don't have, index funds are a great diversification solution.
Plus, many people take comfort in the fact that they're investing in the broad market rather than taking a risk on individual businesses. If the idea of handpicking stocks isn't comfortable for you to begin with, then index funds are a good alternative.
3. Set up your dividends to get reinvested automatically
You may end up owning stocks that pay dividends on a regular basis. Tempting as it may be to cash out some of those dividends and use that money to help cover your many expenses, setting them up to be reinvested could be a much better bet. That way, you'll be continuously putting your money to work. Also, if there's a period when money gets tight and you can't pump any into investments, you'll still have the option to grow your portfolio.
It's hard to focus on investing when you're constantly being pulled in multiple directions and there's no time to slow down. If that's your reality, look to these strategies to build a solid portfolio that serves you well over time.
