March 8, marks International Women’s Day – a good time for women to embrace opportunities to achieve Financial Freedom.
We all have grown up watching our mothers manage the household proficiently. They were organized, disciplined and always in control. The modern woman, in addition to her household and family, also manages her career, juggling responsibilities remarkably. But, when it comes to financial planning, women often take a step back. Even many professional women with thriving careers lack the confidence to take charge of their big personal finance decisions.
Here are few financial planning decisions that ever women should take:
Build confidence on managing money
Women usually shy away from financial planning mainly due to their lack of will to invest their energy towards it; most find it time-consuming and difficult. They, however, need to understand that being truly financially independent is not just about earning money, but to utilize it smartly as well. So, start reading about financial planning, have honest conversations with your spouse, consult financial experts. It may be a difficult and bumpy ride in the beginning, but one will learn and even excel at it sooner.
Be prepared for emergencies
It’s always better to plan ahead for a rainy day. Avoid the concept of being vulnerable in case of an emergency. Plan meticulously and be ready for contingency scenarios. Creating an adequate emergency fund should be the top priority for every woman to tackle unfortunate circumstances. This fund should contain at least six months of your mandatory monthly expenses.
Prepare a Savings Budget
Switch to a savings budget from your spending budget. The traditional way of budgeting involves keeping track of where you are spending money. However, such a budget doesn’t motivate you or help you to track savings. So, what you need is a savings budget. Decide how much you wish to save from your income every month.
Plan for Financial Goals
Women should identify their financial goals and do smart planning and disciplined investment over a period of time. Usually, women have a greater affinity towards “safer” investment options, like PPF, KVP, NSC and FDs. Women should consider investments in mutual funds too. Women can start Systematic Investment Plan (SIP) in Mutual Fund and linked it to financial goals.
Think about Retirement
For many women, retirement saving is never a priority, even when they reach their 40s. This can prove to be a big financial mistake. Every independent woman should start investing for their retirement corpus right from the start of her career.
Be a financially independent woman, become a source of inspiration for other women around you, as well as for your own children.
Wishing all women a very Happy Women’s Day!