Woman, Money & Financial Planning...

Ms. Vidya Kumar, GettingYouRich

To take charge of self finances, a woman should know and plan how much to spend, save & invest as this affects your present and future. One should get involved in financial planning, take care of spending & saving and set one’s financial goals and have a strategy to work towards them.

From time immemorial, the man is considered to be the person in charge of the finances at home. This mindset is changing albeit slowly. Many women, whether they earn or not consider personal finance complicated and leave the men in charge.

As a woman and a homemaker, woman is busy taking care of children, the house and other family members. As a career woman or a business woman, woman is working to earn money and at the same time have the responsibility of house and family. One is no doubt busy.

From a finance perspective, women are considered more risk averse as compared to men and also better savers. It is high time one plunges into personal finance. It is important for women to understand finances, contribute to improvement in household finances and participate in financial decisions of the house. Let us see how women can and should participate in financial planning -

 

Ms. Vidya Kumar,
 Getting You Rich

(1) Get Involved in the family's finances

The best way to start is to talk about it. Get involved in household financial matters like investments. The woman can ask questions and take up smaller tasks like online banking or / booking Fixed Deposits online.

One should create a budget with other people in the house. Woman can then compare actual money spent by the family against the budget. Woman can  then take up tasks like analysing spending patterns at the end of the month to see how different actual spending is compared to the plan. This will help you understand unnecessary splurging or maybe household expenses are being under estimated.

(2) Smart Buying and Selling..

Women are generally considered to squander money in shopping. A woman  shop not only for yourself but the entire family. She should use smart ways of buying goods which will save some money.

For example, she can buy books from online stores such as  Flipkart, E bay and Amazon are also good online stores to get value for money deals. She can check out sites such as cashkaro.com which offers cash, coupons and discounts for shopping.

Many outlets have offers on particular days or / debit cards and she should make use of such offers when required.

Over a period of time, a lot of goods get accumulated in the house which are not useful any more but are still in excellent condition.  For example, prams or furniture can be sold on websites like Quikr or / ebay.  If a woman has a penchant for designer wear and latest fashion, a woman or /  her children might have a lot of clothes which are still good but not used now. A woman can have a garage sale for the same.

3) Financial Planning..

Whether a woman is single or married, financial planning is a must. Many women leave this task to their father or / spouse.

It is important to plan one’s finances so that one can know her networth today and where do you want to be tomorrow from a finance perspective and outline a strategy to get there.

If a woman is married, financial planning together is a must. A woman has to align her financial goals. For example, one needs to know the answers to questions like -

- What will you do after retirement?

- How will you manage your finances when your family grows bigger?

- How to handle finances when your parents start depending on you financially?

Women generally live longer than men. One should consider this factor when planning the retirement. The  financial plan should be such that the current standard of living considering inflation and medical expenses for a long period is covered by one’s funds or savings.

There can be unpleasant situations like severe medical conditions, divorce etc. When one needs money to take care of basic stuff. It is important to have savings in only the woman’s name so that the funds can be used easily by her.

(4) Emergency Fund

Do you have an emergency fund? Have you thought what would happen to your finances if you want to quit working or get laid off? You have to keep some cash aside for emergencies so that the financial part is taken care of.

If you are married, you will have the cushion of your spouse's income but you will have to think through if that will be enough and how your standard of living gets affected. Maybe one of u wants to start a business, find out if it is a financially viable option.

(5) Keep a check on spending

You work hard to earn a living and so you feel it is your right to spend on whatever fancies you. It is not a wrong thought but you should keep a check on expenditure. Do you often splurge on fancy gadgets & exotic holidays?

You should treat yourself to something special once in a while so that it feels like something special. You should make your financial plan such that such expenditure is included in it.

(6) Take advantage of special offers for women

Make use of special offers for women..

As a woman, you get housing loans at lower interest rates from financial institutions scch as SBI and HDFC. In some states, the stamp duty for registration of real estate is lower for women.

Some banks give business loans at lower interest rates to women. You should keep track of such offers and take advantage of such schemes if possible.

If you are a woman and not involved with financial matters, I hope I have convinced you to start paying attention to finances. If you are a man reading this, do encourage the women in your household and your female friends to gear up to work on their finances.

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About Ms. Vidya Kumar..

Ms. Vidya Kumar has done her MBA from Mumbai University. She has 6 years of experience in writing and editing for various personal finance websites with emphasis on financial planning and financial literacy as well as the Mutual Funds Market.

She has co-authored two books on Personal Finance. Currently, she is associated with GettingYouRich, a Mumbai based Financial Planning Firm.

Getting You Rich
8/57, Unnat Nagar 3, Near Jain Temple, 
M. G. Road, Goregaon (W), 
Mumbai 400 062
Landline : 91 22 42648143. 
CALL :  91 98203 29758
E MAIL : listen@gettingyourich.com

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