How To Build Wealth As a Stay at Home Mom
Achieving Financial Independence One Simple Step at a Time
If you’ve ever felt overwhelmed by the world of personal finance or worried that you don’t earn “enough” as a stay-at-home mom to make a real impact on your family’s finances, then you’re definitely not alone.
I used to think the same thing! I’d hear about investing, wealth-building, and “financial independence,” and just feel sort of… left out. But recently, I revisited the classic book The Simple Path to Wealth by JL Collins, and I want to break down his approach—especially through the lens of being a stay-at-home or work-from-home mom. The good news? It’s not about making a million dollars overnight. It’s about simple steps that anyone can take.
Why I Started Caring About Wealth-Building (And Why You Should Too)
For most of my years as a mom, I was lucky if I contributed a couple hundred dollars a month to our family’s income. Only recently have I started making a more significant, regular contribution—maybe about 20% of our household income from my online business. Whether you’re doing the same or just getting started with your first side-hustle, I want to remind you: You deserve to be part of the money conversation in your family, even if you aren’t the primary income earner!
When I got burned out on social media in 2023, I replaced endless scrolling with reading—like, a lot of reading. It’s been so much more peaceful and helpful. The Simple Path to Wealth stood out because of its practical, non-judgmental advice, especially if you’re not already a “finance person.”
Spend Less Than You Earn: The Golden Rule
JL Collins’ first and most repeated advice? Spend less than you earn. I know, this isn’t exactly revolutionary. But here’s the thing: he sets the goal of saving 50% of your income, which honestly felt pretty bananas to me at first! For us, 20% is much more realistic, especially since—like a lot of families—we spend more on health-related stuff, organic food, and some convenience items like meal delivery.
But even just knowing our own numbers helped. I use Monarch Money (I switched from Mint after they closed!), and it’s made it surprisingly satisfying to track our spending. Real talk—sometimes I’d rather look at graphs of my spending than watch Netflix. If you don’t know your number, look at all your yearly spending and see where you could make changes.
If saving 50% isn’t possible (hello, real life), just focus on what you can do, and start with a small emergency fund—think six to twelve months’ living expenses. That buffer is huge, especially if you have the unpredictable income that comes with side hustles or freelance work.
Invest the Surplus: Getting Over the Intimidation Factor
The part where I used to get stuck? Investing. It always felt super technical and overwhelming. This is where Collins makes it SO simple: he recommends investing your extra savings in a low-fee index fund, specifically VTSAX from Vanguard (not sponsored—just what the book recommends!). The idea is, once your basics and emergency fund are covered, you set up regular investments into something straightforward and reliable, and you let it grow over time.
You absolutely don’t need to be an expert, and you don’t need to obsess about “timing the market.” I’m definitely not following his advice 100% yet, but even just thinking of investing in these simple terms has made it feel doable.
Avoid Debt (But If You Have Debt, Here’s What He Suggests)
The last big pillar? Avoid debt when possible—but with real-life nuance. Collins suggests this rule of thumb:
Debt with <3% interest? Focus on investing instead of rushing to pay it off.
Debt with 3–5% interest? Decide if you’re more comfortable paying it down or investing.
Debt over 5%? Prioritize paying that off ASAP.
If you do have things like student loans or credit card debt, don’t panic—just get clear on your interest rates and make a plan. This removed a lot of guilt and confusion for me.
Defining Your Own Financial Independence Number
This part is kind of fun—even if you’re nowhere near reaching it yet. Financial independence, as Collins defines it, means you can live on 4% of your investments each year. So, if your family spends $50,000 a year, you’d aim for $1.25 million invested. I’m nowhere near that number yet, but just knowing how it’s calculated makes it less intimidating and more like a long-term goal to actually work toward.
Final Thoughts: Progress, Not Perfection
I know there are business coaches out there telling you to “just make more money!” but honestly, the key is not how much you make, it’s what you keep. Even if you’re earning a little on the side now, these steps fit any income level. Start with tracking, find your personal saving and investing balance, and keep nudging your habits in a positive direction. It’s about agency and peace of mind, not perfection.
Let me know in the comments: What’s the financial step that feels most intimidating to you? Or do you have a tip that’s helped you finally feel in control of your money?
And as always, I’m not a financial advisor—just sharing what I’m learning, as a mom figuring it all out right alongside you!
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👋🏽 Hi, I’m Sonia— wife, homeschool mom, and a former teacher living in the Midwest. 🌽 Despite facing significant health challenges, I’ve earned over $85K from home all while keeping my health and family as my top priorities. I’m here to help you do the same without being glued to your phone all day! 🩵
I'm not a financial professional, and this is not financial advice. I'm just sharing my key takeaways from the Simple Path to Wealth book by JL Collins.
DISCLOSURE: This blog post is not sponsored, but I do include affiliate links in the post. I may earn a commission if you purchase one of these resources. This helps support my blog at no additional cost to you. Thank you!
