Being a homemaker isn’t easy. It comes with a lot of challenges. Here’s how to tackle them better, financially. 
Being a homemaker isn’t as easy as it sounds. The perception that homemakers can laze around in their PJs half the day isn’t quite right. In today’s changing times, a homemaker doesn’t necessarily refer to a woman who decides to stay at home to look after the kids, while the man of the house goes to work. Today, there’s a surge in the number of men choosing to be homemakers. Who’s the breadwinner in those cases? The lady of the house, of course.
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Yes, ‘the lady of the house’ is a real term. It finally is after beating all those conventional gender stereotypes! Anyway, irrespective of the gender of the homemaker, there are some crucial financial planning tips they all need to know and follow. Since homemakers mostly either work from home or don’t work outside the home at all, planning their finances well becomes all the more challenging and essential.
Being a homemaker automatically links you to tons of responsibilities that might sound like child’s play, but are quite time-consuming. Since most of your time goes into taking care of the day-to-day household activities and other family members, it becomes difficult to focus on your financial goals.
It’s okay. We know it can seem a little overwhelming but hey, you’re doing something most other people can’t and you should be proud of yourself for that.
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Why do you need to plan your finances anyway?
We know you like to know the reasons for doing anything before starting to incorporate some major changes in your life. That’s precisely why we thought we’d give you a valid explanation for why you need to invest some time and effort in planning your finances. Here we go:
- Hi! My name is emergency. I’m here to wreck your finances.
Do you like hearing unwanted and unexpected knocks on your door? No, right? As long as you have that refrigerator well-stocked and you’re willing to share that with these uninvited guests, it’s all good. Otherwise, you might not like the sound of those knock.
Well, emergencies are somewhat like that. They come uninvited and when you least expect them. The sad part is that you can’t control them. The good news? With your financial planning in place, you can be fully prepared for whatever the life throws at you (lemons or watermelons, it won’t matter).
- Tring-tring! Swanky bungalow calling. You can answer the call.
With a fool-proof money management strategy in place, you can improve your standard of living. Who doesn’t like some luxury? Getting a chance to upgrade to your dream car or that swanky bungalow by the beach is something you’d like, isn’t it? Even if you have limited sources of income and prefer being a homemaker, it’s possible to achieve such milestones. Interested now? We thought so.
- More money= less thinking
This equation is pretty simple. You may find that you often think about petty money issues. Things like ‘should I buy this or should I just wait until the next month?’ bother you, don’t they? See, that’s the thing. If you plan your finances right, there’s no need to overthink those small purchases at all. Since you’ll have everything figured out, there’ll be no need to resist the temptation to splurge on yourself every now and then. We should all get pampered at some point and financial planning lets you get exactly that.
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Well, these are some of the reasons you should consider making a financial plan, if you’re a homemaker. Let’s get started with the ways you can achieve a state of financial solidity.
Put yourself first
Being a homemaker, this might sound like an alien concept to you. We know how used you are to putting your family and their needs ahead of your own. That’s a great thing to do and we have nothing against it. But when it comes to making a sound financial plan, you need to start with yourself. You can, of course, take care of your family members and their needs as well, but do this after taking care of your own. It’s not that difficult.
If you’re worried about the funds and how you can arrange them, don’t worry. You can actually find money to invest for yourself in places you’ve always ignored. Those extra bucks you save while opting for a bulk purchase, money your relatives keep giving you and your kids as gift and so many such things. These might look very small now but later on, these can actually convert into a substantial amount. It’s also a smart idea to increase your household budget to include money for investments for yourself and your family.
Depending on your age and ambitions in life, you need to chalk out a clear plan. Your circumstances might change in the future and so might the way you think. You might be a homemaker now, but you might want to start working later in life. It might involve starting your own venture. If that’s the case, you need to save up for that business project. The most important part of starting your own venture is saving up for the initial investment. Of course, the key idea matters the most, but money undoubtedly takes the second-most important spot. Get your business brain working and start saving up! Randomly saving money in a bank account won’t be sufficient, if you want to keep up with the inflation rates. That’s where investment options like Fixed Deposits and Mutual Funds can come to your rescue. Assess your risk appetite, look for the best rates or returns and invest. Trust us, you’ll thank us one day.
Plan for your sunset years
While thinking about your kids and their education or that new house you want to buy, don’t forget to take your future financial needs into consideration. As you grow older, your financial needs will most likely only increase. There’s your health and medical expenses to take into account. To handle situations like these, you need to be financially well-prepared. Investing in the right investment plans and getting that Health Insurance, must be on your to-do list.
But wait! Your health isn’t the only thing to consider. You also need to think about a couple of other things. If you have a source of income, investing in a retirement plan can also help you save some tax. That solves a major part of your worries, doesn’t it?
Hello, Credit history! How are you?
Yes, you absolutely need to ask this question. Just because you’re a homemaker, the basic rules won’t change for you. Here’s why a good credit history is essential. A bad credit history spells trouble and loan application rejections. So, unless you love rejections, don’t play with your credit history. Small things like paying your Credit Card bills on time and in full can help. If you’ve given add-on Credit Cards to your college-going kids, keep a close check on them. Ensure that they exercise caution when they use the cards so you don’t land in trouble. They are kids after all. Swiping that plastic mate left, right and centre is a cakewalk for them. You’re the one who needs to make sure that they use it right.
Being negative can be positive
Always think about the worst possible situation you can land in. No, we don’t want you to be a pessimist. Thinking about the worst that can happen will help you prepare better. It’s a great way to put a halt to all those unnecessary purchases you can definitely live without. Here’s when you need to understand the difference between need and want. There exists a thin (very thin) line between the two. For instance, we understand that joining a gym can massively help achieve those fitness goals. And that surely qualifies as a need because the type of motivation you get at a gym gets lost when you try working out on your own. But is buying swanky sports shoes, gym bags, dumbbells, a cycle and other fancy fitness gear really necessary? It definitely doesn’t qualify as a need. It’s a want. Do you just want to look better and cooler than all other people around you? Trying to act cool isn’t wrong. But there are other and better ways of doing that. Like the next point.
Invest in the right places
Never underestimate the power of investments. They’re like that friend who’s always there in the worst times, to support and help you sail through all your financial worries. We all love that friend, don’t we? Investments are your best friends, financially speaking. Make your investments based on your short-term and long-term financial goals. If you’re knowledgeable about the stock market and still haven’t started investing, what are you waiting for? If numbers and investments are not your cup of tea, talk to a financial expert. They can help analyse your needs and prepare an investment plan accordingly. That’s exactly what you need.
Be open to the idea of working again
If you gave up your job unwillingly, just because the circumstances were not in your favour, maybe you should keep your mind open to the idea of working again. Why? It means extra income and more money is always a good thing, right? It can help you save better and that means extra money for everything! If going out and working a normal nine to five job sounds too hectic, you could always look for some great freelancing options or start something on your own. If you don’t like working with too many people, you could start a new company in your own house! Sound unbelievable? Trust us, you can do it. Even if you willingly gave that job up, just at least be open to working again.
Plan your short and long-term goals with your partner
Since we’re talking about planning and its importance, we need to mention the importance of making plans together with your partner. Being on the same page with your partner, financially, always helps take better decisions. You can save and invest accordingly.
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Budgeting can work its miracle for you
It’s an unspoken financial rule that you need to budget your expenses right. To do that, you must know your priorities. When you know what those indispensable expenses are, other things can wait. To know where to and where not to spend is the solution to all your budgeting problems. Small things are quite crucial. Make a list before stepping out to shop and stick to it; eat at home more often instead of ordering in or eating out all the time; carpool instead of wasting money on fuel, etc.
These small lifestyle changes can change everything for you (for the good, of course). They might take some effort, but that’s it. In return, you get to reap some great benefits. What more can you ask for? Get that pen and paper and start making that list right now!
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Being financially stable is as essential for homemakers as it is for the working class. If you’re a full-time homemaker, we understand that you might find it hard to make time to think about yourself. But with crucial things like the financial stability on the line, you shouldn’t risk it. Gearing up with the best strategies is the best armour you can use to keep all your financial worries away.
All set to take over and manage your finances like a pro? That’s great! If you want to play it safe and take the first step towards a great financial future, try investing in a Fixed Deposit.