Here are some exclusive tips on how to save more money
A woman faces a multitude of financial roadblocks at work and home alike. Even as our society advances, women’s regressive issues such as the gender pay gap, financial illiteracy, household duties, marital challenges, and legal bias are prominent.
But it’s never too late for today’s woman to take control of her finances. Women have the inherent capability to overcome the various stigmas and address financial challenges head-on. Thanks to easy access to online knowledge, altering societal standards, and the opportunity to earn and invest, women are progressing in finances by leaps and bounds!
Women’s financial equality and independence are critical in today’s environment. Therefore, along with pursuing high-powered, white-collar jobs and becoming a valuable member of the workforce, one should consider becoming financially comfortable in the long run. Making appropriate investments is a good step in this direction!
There are several investing options and programs available in India for women who want to know how to save money and invest long-term. One must, however, understand how and where to support one’s hard-earned money. So, if you are looking to make the most fruitful financial investments for yourself, then this write-up is for you: the strong, independent, and money-savvy woman of today!
Establish a Financial Foundation
- You must know where you are beginning to organize your path.
- Take a look at your cash flow statements to see how much money you have coming in and going out each month.
- Salary income, investment interest income, and money from other sources are all examples of inflows.
- Then break down your outflows (expenditures) into non-discretionary and discretionary categories. For example, house rent, school fees, grocery bills, and other expenses which are non-discretionary costs, whereas discretionary expenses include money spent on leisure and luxuries.
- This will help you govern how much money you have to invest and where you might save money by cutting specific expenses. This assists as the basis for developing a monthly budget.
Selecting the Best Investment Option (how to save money)
- Many investors, particularly women, find themselves navigating the intricate maze of investing possibilities. Each may claim to offer the finest profits and tax advantages in the industry! But none are reliable enough. So, unfortunately, precious time is wasted before deciding where to invest, and even worse, they end up investing in a suboptimal way for their needs.
- A long-term horizon is the first guideline of investment. Simply put, this entails looking five, ten, or fifteen years ahead and devising a strategy for investing in a varied range of securities per one’s life objectives. Because no two people are the same, they are unlikely to have the same financial goals.
- Short-term liquidity and long-term liquidity must be factored into an investing strategy. For example, liquid investments, such as mutual funds, can be changed to cash easily, as the term implies. On the other hand, a long-term capital gain is an excellent way to battle inflation and provide financial security in the long run. PPF or Fixed Deposits are two examples (FD).
- Of course, additional aspects to consider before deciding include risk tolerance and the quantity of money available to invest. So, from long-term to short-term investments, here are recommendations for women to save money.
Provident Funds for Employees (EPF)
How to save more money after retirement? EPF is a great way for women to secure income after they retire. Women employees do have some particular benefits, such as contributing at a lower rate of 8% for the first three years; nonetheless, the government’s share of the contribution made by women employees stays at 12%.
In addition, personnel in the private sector can invest up to ₹ 2.5 lakh per year without paying tax, while government employees can invest up to ₹ 5 lakh per year without paying tax. Interest and maturity returns are also tax-free.
PPF (Public Provident Fund)
PPF is a risk-free investing choice because the government backs it. It now has a 7.1 % interest rate and a 15-year maximum term. Therefore, each investor can invest a maximum of ₹ 1.5 lakh each year, fully tax-deductible. Both the interest and the maturity amount from a PPF are tax-free.
An investor can get loans equal to 25% of the sum at the end of the preceding year from the third to the sixth year of investing in PPF. However, such loans have around 2% more than the current PPF interest rate. For example, if the current interest rate is 7.1 %, the applicable interest rate is 9.1 %. In addition, investors are permitted to withdraw 50% of their invested capital after five years.
Mutual funds are another wonderful investing choice because professionals manage the money. You can invest using SIP to invest periodically, which minimises risk and maximize returns on investment, to accumulate significant wealth over time.
Mutual funds can replace Self-trading. Banks and other financial institutions offer a wide variety of mutual funds for investors to choose from. Investors can choose from various products to meet their needs and invest in a lumpsum or SIP. In addition, mutual fund investment has the advantage of avoiding large losses.
Gold prices inevitably climb during times of uncertainty. For this reason, it is stated as a “haven” investment. In addition, women will find investing in certified gold coins in various sizes an appealing investment option.
Digital Gold / E-Gold
is a great choice if you don’t have a lot of space. It has the same monetary value as one gram of actual gold and is very liquid.
E-gold purchases don’t require a separate Demat account, and the gold is priced according to the Indian gold market. Unlike ETFs, which are regularly influenced by global market conditions, this is not the case with digital gold or gold mutual funds.
Financial well-being entails feeling confident in taking charge of one’s finances on a day-to-day basis and having faith in one’s prospects. So take control, devise a strategy, and stick to it. You’re well on your road to financial freedom as well as true empowerment!