Financial planning isn’t quite different for men and women. However, given the selfless, caring nature that women inherently possess, they could ignore their own finances. So, here’s the plan to get it right.
Women have an inherent ingenuity when it comes to managing finances. In cases where women run households single-handedly and take care of the entire family, women have been ruling like pros. But, even boss women who go to work every single day are queens in their own way.
In recent years, women have come to acknowledge their rights, and fight societal norms in all aspects of their life. Women these days are on par with men; they don’t hesitate to demand equality. And, when it comes to finances too, they aren’t far behind.
Hence, as a woman, you’d face challenges on a daily basis. Challenges become part of your routine – care-giving responsibilities, being a breadwinner, or financially securing your future – are a daily affair.
Thus, it helps when you, as a woman, save and invest your money smartly. Having a concrete financial plan is the way to go. And who else other than yours truly can you rely on to help you build this plan?
So, without further ado, let’s take you through these effective financial planning tips for women.
Keep The End In Mind
Objective setting or goal setting is the first step to anything you want to achieve. Setting an objective will leave no room for confusion and will help you stay on track. For instance, if you want to plan a vacation abroad and need Rs. 1,00,000, you can start saving Rs. 10,000 every month, and by the end of 10 months, you’ll have enough money to book your tickets and accommodation.
You see? Working backwards will help you set that goal in mind. But, objective setting isn’t limited to only vacations alone, it can be anything – planning your wedding, saving for your child’s education, starting your own business, or pursuing higher education. It all starts with keeping the end in mind.
Once you’ve determined your goal and decided how much you can save every month to get to it, you can start looking at the various investment avenues that are there. Perhaps a little bit of research will tell you what suits you best.
Additional Reading: Top 5 Savings Account Schemes For Women
Get To Doing It
Whatever mode of investment you’ve identified, it’s now time to start doing it. Delaying the investment will only waste valuable time, and time is money. If you’re fairly new to investing, and the terms and conditions of these investment options seem like Greek to you, it helps to get a financial advisor who can help you out and lead you in the right direction. Getting an expert opinion will not just reassure you, but also help you get the most from your investment, in terms of returns.
But, hey, even we can help you compare your options.
Additional Reading: How Women Invest Differently Than Men
Keep ‘Em Investments In Check
Doing a quick review of your investments periodically will help you ascertain how much and how well your investments are doing. Moreover, an increase or decrease in your income and expenditure will also affect your investments. This way, you can tweak your investment plan to adjust for any changes and there won’t be any last-minute nasty surprises too!
Sometimes, you may place all your eggs in one basket and that isn’t always a good idea. Also, this way you’ll know well if any of your investments are nearing maturity.
Additional Reading: Term Of The Week: Nest Egg
Reap What You Sow
It’s time finally to enjoy your returns. Redeeming your investments as and when they mature will help you calculate their tax implications too. Besides, you can then use those funds for whatever goal you set for yourself.
If you don’t have a financial consultant to do this, you may want to ensure that your documents are in place for a hassle-free process.
Additional Reading: Tax-Saving Investment Options Under Section 80C
Drawing up a financial plan, executing it and reviewing it periodically may sound like quite a task, but don’t let the numbers and calculations overwhelm you. Remember, building an effective financial plan is the first step towards attaining financial nirvana! Put on your thinking cap and put that financial plan together.
Also, don’t limit your investing to savings alone; find more options on our website!