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Managing finances is a life skill that can help in achieving life goals. Women are considered better at managing money than men. Statistics show that women have been successfully managing home spending and budgeting since the dawn of time. There are numerous practices to be learned that can benefit anyone in today’s fast-paced world.
Women usually have a reluctance for making a long-term decision towards their financial planning goals. However, they are unable to take advantage of their inherent aptitude due to a lack of confidence and expertise in long-term financial planning, and in some cases their reliance on their partner and family.
The Best Way to Manage Household Finances
Financial advice for a Homemaker
As a homemaker, you’re in charge of the family’s finances. That suggests you have control over how finances will go about during the week’s span or on a monthly basis. Here are five important points to keep in mind.
- Make the most of your money & save aside some for rainy days. There are enough investment options available nowadays to save money on almost anything.
- Gold schemes, chit funds, and deposit plans should be avoided at all costs. They are all incapable of generating a return on investment. Instead, choose equities for their strength and mutual funds for their protection
- Insurances are also a vital financial investment to consider
- Remain focused and disciplined on your task. Don’t forget to save each month, and be dedicated to your savings
- Involve yourself in family financial decisions, whether it’s buying a house, a car, or anything else
Financial planning and advice for working women
Women’s contribution to family finances continues to be critical. Working women, on the other hand, have additional responsibilities. Here are a few tips that can help in better financial planning:
- Have 6 months’ worth of rent/loan repayment amount saved and kept aside for rainy days
- If you have a steady job and regular income, avoid the allure of BNPL, which is the in-thing. Debt has the potential to spiral out of control quickly
- Make a parallel investment in your future to pursue your dreams without having to worry about finances
- Avoid credit cards as they can add an additional cost to your monthly payment cycle
- If possible, automate all your payment around the time the salary arrives
How to Update Your Financial Planning
- Periodically update your financial knowledge, utilize mobile apps to check your expenses, and seek the advice of a financial experts.
- Don’t squander your money. Instead of keeping money hidden at home, your savings should be invested. Recognize that saving isn’t the same as investing; you must use your money to make more money for you.
- Learn about schemes like the concept of stree dhan and how you can make the best of it
- Set achievable short-term financial objectives for yourself because achieving them boosts your confidence tremendously
- Communication is a great way to know how everyone else is investing their money and borrow ideas from there
- Make sure you’re part of the family’s financial decision-making.
Financial Planning Starts With a Simple Thought!
Creating a realistic financial plan that considers the difference between your income and spending, as well as how much funds you can save in the short term is the step to having strong financial backing. Even 10% to 15% in savings is a solid starting point. Remember that budgeting is a lifelong practice, and it’s perfectly fine to take your time getting used to it.