Ladies are masters of multi tasking and they are great planners! In daily life, right from grossery shopping to managing a corporate, they can plan and execute everything with ease.They earn their salaries, get profits from their business but when it comes to their own ‘Personal Finance and investment’, mostly they shy away!
Often, in our households, investment and expenditure decisions are taken by men of the family. Though they have their spouses working, men execute all the decisions and spouses though are earning, look after family and kids.
But dear women,if you can put all your expertise in your careers and family and win accolades, same way you can look after your own personal finance too!
- Understand the basic difference between Savings, Investments and Insurance: Before starting, please understand the basics of these three. People mix savings with investments and seek returns from their insurance policies. When it comes to ‘savings’, you should always keep aside money as and when possible. You can keep it in your bank a/c to earn basic savings a/c returns. ‘Investments’ means you are making your money work for you by deploying it in different investment instruments like mutual funds, bonds, NCDs etc. ‘Insurance’ is nothing but the assurance about financial independence of your dependants after your death. So, please don’t mix and match these three.
- Understand and actively participate in family finances: If you are earning then you contribute in family expenses. Even if you are a homemaker, then also you take care of household budget.Now,please think beyond household expenses, and start taking active role in family investments along with your spouse. Put forth your opinions about new investments, loans that you may need to take.
- Be vigilant about investments and personal finance in general: In your daily hectic routine, please try to read about personal finance. You can read blogs , newspapers, etc. With this, you will be aware about many new investment avenues or any special provision in loans etc that are specially beneficial for women. E.g In home loan rates, if a woman is the applicant then she gets less rate of interest. This way, you can choose the best suitable for you.
- Set goals specially for you: Women always think about their family first and put themselves last. But, you must set some goals specially for you. Like a trip to abroad with your group of friends, A charity that you wish to participate every year on your birthday, some goal related to your own retirement life. Once the goals are set, you can make investments accordingly.
- Make records of family transactions and investments: You must record all the family transactions and get knowledge about it. E.g Loan taken/given, investments done, expenses made for a particular item,etc. You must know all the bank account details, nominations in insurance policies, details about investments made in various avenues. Keep this record updated.
- Get a term insurance and health insurance for you: When you are economically contributing to family and partly taking care of dependants, please take a ‘Term Insurance” for you and make sure that your spouse also has it. You both should be nominee in each others policy. This will take care of financial independence of your dependants after you. ‘Health insurance’ insures your health and it takes care of medical expenses that occur during illness and hospitalisation. Being a woman, you are prone to some deceases that are increasing these days like hyper tension, etc. You must be a part of a ‘Family floater’plan and if not then you must buy the same. Even though your employer has given you group insurance, you please take the one of your own.
- Have joint goal setting with your spouse: You should take all financial decisions along with him and you both should act as a team for your financial well being. Set joint goals for your children, family and importantly for your retirement. You should be financially independent post retirement too. So, make a plan for your retirement as well.
‘Houses’ turn into ‘Homes’ because of women! Dear women, you work hard to make future of your children bright and to maintain the standard of living of your family by putting your dreams on hold . But its a time to dedicate some of your attention to your finances and make the money work for you!!