Has financial planning taken a back seat for you? No worries! Focus on these three areas and you’ll be back on track.
It is a common notion that most women are rather uncomfortable when it comes to long-term financial planning. And that’s the reason why they let the men in their life – be it their husbands or fathers – take these decisions for them. But times are changing, and more women are taking things, especially their financial decisions, into their own hands.
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If you’re one among the many taking the driver’s seat but don’t seem to know where to start, then this article is for you. In this article, we’ll cover the three most important financial areas women should focus on.
The only way to set your path to financial freedom is by saving enough and more money. And, it is not possible to save until and unless you start tracking your expenses. If you don’t know where your money is going, you’ll never be able to determine how much money you can save. Ask any financially successful person and they’ll tell you why you tracking expenses is important.
Once you figure out your expenses, you should make a monthly budget for yourself. Only with a budget can you ensure that you’re living within your means. However, budgeting begins with saving. Pay yourself first. Set aside at least 10% to 15% of your income every month, and then plan your expenses around the balance. It may seem like a difficult task but trust us when we say this is the best practice.
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Okay, let’s assume you’ve saved some money. Now, you should focus on multiplying your savings. How you ask? Simple! You’ve to invest this money in avenues that fetch you a decent return in the long run. But, before you start investing your money, you should set aside a good sum as your emergency fund. The best avenue to put this money is in a liquid fund, where it will garner interest as well as is easily reachable when in need.
After this, you can invest the balance amount in tax-saver investments and equities, based on your risk appetite, however. Focus on keeping your investment’s expense ratio low. Also, do not forget to assign specific financial goals while investing. This will help you set the right timeframe for your investments. Ideally, you must stay invested for at least 5 years and over to get good returns from your investments. That’s why we stress that you start investing as soon as you start earning.
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Most women tend to overlook insurance. And we can’t blame them as insurance is considered as a financial security instrument for family members if something happens to the breadwinner, and women are rarely looked upon as breadwinners. The breadwinner status is still a man’s thing. But, as mentioned earlier, times are changing. Today, women are taking upon the financial responsibilities of their families. And, therefore, it is important that they ensure their family’s safety with an adequate insurance cover in case something were to happen to them.
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Focus on these areas and you’re all set to reach financial freedom. If, in any case, you want help financially, always remember BankBazaar’s got your back.