Even in this independent India, the women of the country are still totally dependant on the male member of the family be it father, spouse or son. Even now the Indian women need to learn how to manage their finances independently. This is primarily required to put an end to the conservative approach of the society wherein men are considered responsible to take the financial decisions of the family. Although women have full control over the other decision related to household stuff, children and chorus.
However, it is the time that now women should be involved in the decisions pertaining to finances and handle it themselves. Here, we are presenting the list of a few things that women should play safely:
Conservative approach of investing
According to a recent survey, it was found that about 70% of the women are interested in conservative as well as a balanced approach. Whereas, in another survey, it was noticed that as compared to men, it is the women who outperform men when it comes to long-term investment performance. However, it should be kept in mind that when investing extremely conservatively, the long-term performance may hamper as in case of holding a huge chunk of savings in the form of bonds, cash, etc.
Spending in an extravagant manner
Generally, the emotional strength of women is far greater than the financial strength. Therefore, they indulge in splurging and swiping their credit cards thinking that they did not have enough. With this disbalance scenario of emotional and financial strength, the forget the fact that they are being extravagant with their spending habit. Women must equalize their emotional and financial strength.
Saving a portion for emergency
It is a good habit to save for the rainy day and accordingly make a plan for the same since the day one of earning a steady and fixed income. As a general rule, women should start saving a part of their income regularly as soon as they start earning and generating funds for themselves. This will make it easy for them to set aside a liquidity margin. This will also help in meeting unforeseen circumstantial expenses that may arise at any time.
Not availing offers every now and then
There are several offers that keep floating with respect to credit cards, insurance, etc. that appear appealing but in fact, these schemes come out to be quite expensive. Women should not fall prey to these appealing prints and alluring advertisements. Instead, they must ask questions and enquire before laying their hands on any of these.
Differentiate between saving and investment
Understanding the difference between saving and investment is very important and both the terms should not be confused. When we talk about savings, it means savings in the bank account where the money is kept without generating any returns. Whereas, the investment provides regular returns on the amount through several sources such as mutual funds, PPF, fixed deposits, and similar allied schemes. It is the investment income that helps you grow many folds and provide funds for achieving personal goals such as a wedding, vacations, retirement, children’s higher education, buying a car or property.
Considering partner to handle financial decisions
Women in India, generally let the spouse handle the finances of the family and take major financial decisions. It is quite usual that many employed women hand over their monthly salaries to their spouses to handle so that they can wisely use the funds. Women are unaware of even the financial assets of the family and management of the same. They keep themselves away from the financial decisions and indulging in taking active part when it comes to the monetary assets. As a result, they lack not only knowledge but also do not gain any experience in handling finances independently.
Spending wisely
Credit cards are being widely used in the world around by the women, because of the fact that you can buy and enjoy immediately whereas the payment can be made later on. Therefore, irrespective of women having money or not, they buy several things using a credit card and fail to note that they are spending vaguely on stuff that is not even necessary. Due to this habit, it becomes necessary to understand what you actually need instead of splurging right away. However, if we talk about the house, it is a wise investment as it saves you from living in a rent-free house and alternatively generate income by renting out the house. Therefore, think before swiping the credit card every now and then.
For women of today, it is imperative to understand her position in society as well as in the financial matters of the family. Naturally, some of the females are not even aware of how and where to save and invest. Therefore, women can take help from some organizations such as PTIC India, that offers free consultation on professional financial planning. PTIC India provides detailed advice and recommendations on various aspects of finances that require women intervention and achieving the personal goals of life. Let PTIC India be your helping hand and save you from falling in the trap, discuss with PTIC India to get details on customized financial plans according to your earnings and spendings of money.
