Women have always stayed away from finance related decision making; giving rise to a myth that women can’t handle finances. Interestingly, women themselves take a step back when it comes to financial management. Educated or not, working and even financially independent women almost always let their fathers/ husbands/ brothers do the needful instead. However, a lot is being talked about that women should take charge of their finances irrespective whether they are working or not working. Here are some quick pointers that every women whose going to take money matters into their own hands should consider.
Build your financial confidence
If there’s any member of the house who understands all needs of all the members of a family, it has to be a woman. You let her plan the budgets or you give her a set budget, she will do an amazing job at both and always making sure that she saves some money without letting anyone compromise on their needs/ wants. So, as a woman, you are most adept at handling financial matters. Do not shy away from taking money-related decisions, instead, believe in your skills and take initiatives.
Stop just saving, start investing
We all know women are really good at savings. In fact, all our savings lessons have come from our mothers. But they are poor investors, unfortunately. They keep saving money but never think about growing it by investing properly only for the fact that they wish to keep it for the unforeseen emergencies or the things they wish to buy for them. With time, money kept locked and un-invested finds its value decreasing with rising inflation. Hence, it is recommended invest the money that you’ve saved.
Have an emergency fund
When you look at investments, before committing towards your long-term plans, you should have sufficient money as emergency funds for the unforeseen emergencies that may come. Wondering where should you keep your emergency fund? No banks and no lockers. Park your money into Liquid Funds – a new age instrument for short term investments. The best part is you can invest and withdraw your money anytime you want from your accounts and yet get more interest than what your bank offers.
Are you the major breadwinner of the family or contribute equally for family’s expenses? Have you thought what would happen if you are no more or cannot make it to work for a few months because of some temporary disability (due to an accident)? Who would provide for the basics of your family? Get yourself Insured. Secure your family against these what if’s by taking a term insurance and an accidental insurance. Apart from that health insurance is also a must for the entire family, given the inflation in medical industry and fast increasing probability of catching some diseases.
Don’t fall prey to women focused products
Many marketers try to lure women by selling ‘women-focused’ products. These are usually a part of marketing gimmicks. There are no specific investments meant only for women or men. Investments are and should be need and goal based not gender specific. Hence, do not fall for such ploys and make your decision only after weighing all your options well or seek expert opinions.
Whether you are starting to plan your finances or already planning your finances; keep these few things in mind to get your finances right. Now that you are already striving to be financially independent; it’s time that you take charge of your finances too!