There has been a common notion about women as “spenders”. Statistically, women are the best buyers, but a stigma persists that they can’t handle money. Women perform multiple roles, such as homemaker, customer, consumer, working professional, and entrepreneur, and this certainly calls for financial management expertise. Financial planning is no longer a taboo for women and an alpha female is very much interested to grow wealth and secure her future enthusiastically.
Financial management is the art of managing money appropriately. The importance of money management for women should be learned by her just as she learns about domestic affairs and her professional commitments and responsibilities. Women are gaining financial impendence with employment and they must know how to rotate their funds for a profitable environment. It is important for them to know the household income and expenses and track them every month to keep a tab on their spending.
There have been episodes of women taking career breaks and such breaks with no steady income or financial backups the situation comes tough. Life is full of emergencies and a contingency fund comes as a weapon for a woman. Today women are opting for a career switch, the market demands some prerequisite skills hence, planning financially to invest in self is needed. It is thrilling to be an independent daughter who not only chips into her wedding bills but also looks forward to supporting her parents.
The rules of financial management are very simple, if you have the following clarities-
Know your goals
It is important to be clear about your financial goals, be it short-term or long-term. The question of what you want to do with your money? Should have a clear answer – fixing assets, participating in leisure, lifestyle priorities.
- Where do you stand
Your remuneration tells your present and what all you can do with it. What is your spending power, your saving tendency, your running loans, your investments, all these factors needed a minute study at intervals.
- Smart Investments
Investment is never about a big fat bank, but a small start is very much possible. The business of investment comes with a risk, but that’s how you learn about the investment strategy and plans. Today, digital platforms are actively sharing knowledge on niche segments and women are actively taking a call on this with proper knowledge and guidance.
- Your retirement plans
Don’t be a piece of baggage when you grow old. Your kids will be around you to look after you but be an inspiration to them by planning your retirement investments wisely and having wings to lead a life comfortably without a salary.
Financial management differs from woman to woman, a woman in her 20s can afford to splurge, but a woman in her 40s has to take care of wealth in a smart way. Your income increases over the years, so the inflation and the wish list. The time is to focus on securing your future with financial discipline.