From lovely daughters to understanding wives to caring mothers; 21st century women are much more than that. With women doing wonderfully well on all fronts of their lives be it professional or personal; yet they have to battle every day in a system that is stacked against them in many ways. There is absolutely nothing which a woman can’t do by herself whether it is fulfilling professional responsibilities or household commitments. Still they tend to ignore one of the most crucial aspects of their lives which is Personal Finance. Today also women shy away from money matters. In a recent survey conducted it was reported that about 77% of working Indian women depend on their father or spouse for making investment decisions for them.
This is paradoxical but the research shows that women can be better money managers than men. The resistance is due to the lack of confidence as such matters have always been taken care of by the men.
This women’s day we urge all the women out there to step out of their comfort zone and take control of their finances. Through this article we would talk of how women can have a secure financial future.
Spend less than you earn
Whether you are single or married women; the first step towards achieving financial freedom is to track your expenses. While managing finances one should understand the difference between the needs and wants.
Shopping is something that every woman loves to do. When you enter a shopping mall or a clothing store, then all your wants become your needs. That one moment you want to buy everything that you like in the store. But hang on; think whether you actually need it or not. Think rationally and spend.
Start Saving
Begin by paying yourself first. Set your saving goals and commit yourself to them. Start by saving atleast 10-20% of your income every month. It may seem to be a bit difficult in the beginning; but this strategy can and does work.
Invest what you save
Money does not grow by itself. Savings have to be coupled with investing to make your money work for you. Investing has been often confused with keeping money in savings account or FD or RD. But that’s not investing in true sense.
Investing starts with linking your savings goals to your investments. Women are not very aggressive with their investments. However while seeking protection it would be wrong to park all your money in one asset for all your goals.
Thumb rule of investment: “You cannot drive with just one gear to reach different destinations” It implies you need to invest in different assets to reach your financial goals depending on the time you need to reach that goal.
Have a Back-up Plan
Insurance is an indispensable part of any good financial plan. Insurance enables you to tackle the “What if something were to go wrong” situations. Whether you are single or married and working you should go for a life, medical and accidental insurance. Term insurance can still be postponed in case you are single and don’t have financial dependents on you.
Things to do this Women’s Day
– Don’t blindly follow women centric products/plans
– Align your financial goals to your investments
– Seek advice from a financial advisor and not a salesman
– Stick to the basics, don’t experiment too much
With these simple money moves you can master the art of managing your finances. Good financial management is no rocket science but 99% common sense. Everyday remind yourself that you are the best.
Happy women’s day to all!!!!!
