One of the most questionable topics of the recent times is How can women handle finance effectively?
Now a days women have actively started involving themselves in investment decisions of the household, however the numbers are still abysmally small. Actually it is like a double sided coin. On one hand, the women are too busy with their household chores that they cannot set apart the time to manage the core finance of the house. On the other hand, the men already cover the finance area of the house from the beginning and do not willingly hand over the part to the women of the house. So the homemaker of the house is comfortable meeting the household budget, but not ready to take investment decisions.
So without much further ado, let’s go through the 5 easy steps all women can follow to become a financial savy
#1- Learn Simple Finance
There are plenty of ways to learn money management- You can read finance books, note down financial tips from magazines, watch financial videos and get into the habit of creating financial planners and calendars. Finance does not mean only keeping a track of the stock market and the shares, instead its about being aware of how the money is being spent, where the money is getting invested and keeping a close watch on the emergency fund in case of any mishap.
#2- Take part in the Family’s Financial Decisions
Be a strong part of your family’s financial decisions, irrespective of your marital status. On doing so, you get a good hang of the core financial aspects such as investing, saving, budgeting, insurance and much more. Women should proactively take the initiative to involve themselves in the financial decisions of the family; at the same time the man in the family should also take the effort to involve the women.
#3- Move Ahead from Saving to Investing
There still exists the stereotype that women are big spendthrifts, however studies have revealed that they are sharp savers and financially smart. A survey conducted by Scripbox has shown that over 80% of women have exhibited strong financial discipline with their monthly savings. At the same time, we have come to notice that only 30% of women indulge in financial investments. One should choose proper financial instruments to Invest, otherwise the savings will lose its value in the due course. Usually a woman’s salary goes into household expenses and the man’s salary goes into investment, which should not be the case actually. Women should be diligent about investing a part of their salary in suitable instruments so that there is a strong backup in case of any issue or problem.
#4- Bridge the financial gap through strong negotiations
As per the study, women earn much less than men for performing the same type of job. One of the core reason for this financial behaviour of women is they agree to lesser salary packages and fail to perform aggressive negotiations. Usually women take up whatever salary package is offered to them, however they do not realize that underplaying their earning potential can prove to be a big mistake in the long run. Additionally, the salary packages of women can further go down due to the career breaks in their life.
#5- Prioritize your Retirement
In the long run, women compromise their goals and needs for the sake of their children. But little do they realize that this habit can prove to be fatal especially during their retirement days. Hence it is very important for women to protect and secure their financial goals and set their financial planner straight, so that they do not have to face any problems during their retirement.
So to the women of the world we just have one thing to say- Manage your money and Make it Work for You.
Happy Women’s Day- Jai Hind
