Women have taken better control of their work life. Now, it’s time they worked wisely and smartly towards building wealth for a better future.
From attaining a professional degree to earning a livelihood, contemporary women are no longer dependent on anyone. The working women folk today contribute significantly to the household income, irrespective of their marital status, and are in fact often the breadwinners in families. However, this often means taking up responsibilities at the cost of letting go of individual aspirations or financial security for that matter. In this article, we will take a look at some of the challenges that these women face and how they can tackle them better.
Single Woman Breadwinner:
Family Comes First
Single women breadwinners often tend to deprioritise their comfort to support parents and younger siblings financially. Some even delay their marriage and higher education to fulfil financial responsibilities.
What Should They Do?
It’s nice to spend for your family. But remember, only a happy you can make your family happy. Hence, it is best to keep aside some money for your needs at the start of every month. You can allocate the remaining income for your family’s expense, savings and investment. Chalk out a budget and stick to it.
Married Woman Breadwinner:
Things could be trickier for a married woman, juggling between careers and managing home. If you are a mother, motherhood comes before anything else. Financial responsibilities do not ease off the share of household responsibilities. While it is good to share household responsibilities with your partner, you don’t want to use up all your income for household expenses without securing your future at all.
Here’s how the married women could handle their finances better.
Allocation Of Income
You and your husband should have a clear allocation of how the income would be used. If you both agree to share household expenses, the ratio must be defined clearly. If the husband decides to take care of the household expenses himself, the income of the wife can be used for savings and investments for herself and the children.
HRA Benefits And Home Loan
When it comes to house rent, it is advisable to split the rent to save maximum tax. When claiming HRA, you can split the rent amount in a proportion that will best maximise tax benefits for both the partners. The ratio for dividing the rent would depend on the tax slab applicable to both the husband and the wife.
For a Home Loan, both partners can be co-owners and co-applicants to maximise tax benefits. Both can claim a maximum deduction of Rs 2 lakh each on the interest paid on the loan and up to Rs 1.5 lakh each on the principal repayment.
For Other Investments Such As Health Plan
When both partners are working and wish to claim tax benefits on the Health Insurance premium paid, they can take separate policies to avail individual tax benefits. You can also take a family floater and split the premium between you and your spouse to avail tax deduction. It is advisable to consult a tax expert for investments in joint names to avoid confusions while claiming tax deductions.
Women have taken better control of their work life. Now, it’s time they worked wisely and smartly towards building wealth for a better future.
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