Financial Planning for Women’s

Financial Planning for Women’s

Gone are the days when the man was supposed to earn the family’s bread and the wife was expected to stay at home and care for the household. Men and women are economically and socially equal today. However, when it comes to investment or personal finance planning, most women still rely on their husbands/fathers to manage their investments or financial goals.

Why is financial planning important for women?

Well, why not?

Financial planning isn’t just about investing, it’s about what money can do for your confidence, security, and quality of life, such as the protection that life insurance provides or the peace of mind that an emergency fund can provide. According to research, planning also promotes good money habits.

Here’s why it’s Important.

1. Planning of investment: –

Making investments is critical. But you’re already aware of it. What is more vital now is to make deliberate and consistent investments. Investing in a Systematic Investment Plan (SIP) is a fantastic alternative nowadays. It not only serves the function of regular investments, but it also teaches the value of saving.

2. Setting financial objectives: –

Identifying and setting a financial goal will help you save money for many important life events and activities. Setting financial goals such as children’s education, marriage, or a foreign trip with family, like in the preceding example, brings about a lot of clarity.

In fact, even if you just want to buy a new purse, you can set a budgetary target. For example, if the bag costs Rs. 5,000, you can plan to save/invest Rs.5,000 over the course of five months to attain your objective.

3. Savings: –

Saving is the process of putting money away from our earnings for future use, usually for unforeseen expenses. Consider the day when our mother gave us a piggy bank. We had no idea that our mother was teaching us one of the most significant financial lessons of our lives in the shape of a play exercise. Not only did she teach us this, but she also demonstrated it. Consider how our mother used to keep a small money container or stray notes hidden amid the kitchen equipment. If you haven’t already started saving, make 2033 your year of reckoning. Let us commit to make regular savings a habit. You never know when something like this can come in helpful!

4. Idle Savings Is a Financial Disaster Workshop: –

As a continuation of the preceding concept, you should take care not to let your money sit idle. It is critical that you invest your savings. You can put your money into a variety of asset classes, including stocks, mutual funds, gold, and real estate. People are shifting away from traditional investment strategies and into more dynamic avenues, and you should, too! However, make sure to invest in accordance with your risk tolerance and expected return.

5. Debt management: –

Many of us overspend in the age of credit cards.

According to studies, the majority of youngsters have some type of long-term debt. Home loans, auto loans, personal loans, and student loans are all popular kind of loans. The ease with which debt can be obtained has resulted in the problem of excessive debt.

6.Tax planning: –

Tax is a significant obstacle to ensuring your future. However, it is critical to be a responsible citizen. So, what are you going to do? Regularly save taxes as part of your financial planning. Invest in a Public Provident Fund (PPF), a National Savings Certificate (NSC), a National Pension Scheme (NPS), or tax-efficient mutual funds, among other things. Tax breaks are also available for home loans, housing rent, and children’s schooling expenses. Many women want to avoid tax discussions. Please stop doing that! Maintain your expertise and remain informed! It is a necessary step toward financial independence.

7. Make a Retirement Plan: –

It’s high time you take control of your future. If you don’t take care of your personal finance planning and money management today, you won’t be able to rely on your spouse or children when you retire-plan for retirement as soon as you begin earning. Every cent you save today will turn into gold in your old age. Investing in mutual funds, PPF, and NPS until you reach the age of 60 can ensure that you will retire wealthy with lakhs of rupees in your bank account. So, be careful with your money.

8. Financial Literacy: –

Women’s financial literacy is the cornerstone for financial freedom.

So, what is the best course of action? Take time out of your hectic schedule to learn about personal finance, budgeting, and money management, as well as to examine the stock market, popular investing methods, and various financial schemes. If you are feeling overwhelmed, seek professional assistance and insist on learning.

If you want to have security measures around your financial life, financial planning is a necessary for women of all ages. Earning money isn’t enough if you can’t put it to use in times of difficulty.

Overall, financial planning enables women to be financially independent, safeguard their future, and make sound financial decisions.

We are open for comments and suggestions. The above article has been prepared as by Ms. Laxmi Malge (laxmi.malge@abacussolutions.co.in) and reviewed by Mr. Suyash Tripathi (suyash.tripathi@abacussolutions.co.in)