The obvious answer is no because most women will have to manage their finances on their own at some point in their life. As a woman, it is important to be financially knowledgeable and capable to earn and manage your own money because you can neither predict nor prevent any tragic event from happening which can negatively affect your financial situation. Being financially sound also helps you boost your self-confidence and allows you to live with dignity.
That’s why it is it is very important for women to have a strong understanding of how to manage their finance, and invest for their own future. But general tendency amongst women is that they are very reluctant to discuss their finance with anyone else, including their life partner.
In general, it is seen that women can discuss their personal, family or even love matters with friends, medical issues with a doctor, but when it comes to talking about money and investments they are very tight-lipped. Behind women’s resistance to discussing money matter lies lack of confidence in their knowledge of financial planning and investing. This lack of confidence is really self-imposed one, completely unwarranted and mostly due to earlier habits, sometimes dating back to a childhood spent watching men handle finances in families. Traditionally, women have demonstrated stronger saving rates than their male counterparts and enjoyed better long-term investment performance whenever they did take initiative in this regard. Unfortunately, too many women still hesitate to take control of their finances.”
Here are few tips which will help you in setting up high financial goals and achieving them:
Unfortunately, the world mostly knows women for their spending habits/addiction and ignores their ability to manage the family in difficult times. Indeed all women have financial management in their genes but just a few are able to really exploit them. A simple way to curb the spending habit is to start preparing your monthly family budget. This will help in analysing spending pattern and to compare it with actual family needs. By this, you will be able to prioritise your needs and will be able to avoid unnecessary expenses. Before you spend ask yourself the below questions
Once you start budgeting treat yourself with something small but nice, if you are able to surpass your saving targets this will keep you motivated in the long run.
We all love swiping our credit cards and collecting points. Even though we think we’re saving in the long run, don’t swipe just to get more points. Instead, work with the rewards you already have or set a goal for spending on credit cards. Though you don’t have to pay immediately, but ultimately the credit card bill will result in negative cash flow for you. In case if you can’t resist your craving for shopping then avoid using credit cards or reduce your credit limits.
If you wish to retire early and wish to lead a very healthy, relaxed and independent retirement life with your spouse, it is very important for you to identify your short term and long term financial needs and objectives as early as possible. While doing so you should give due consideration to various factors like your existing housing/education loan, unplanned medical expenses, your child’s education, your retirement needs etc. Once you identify these needs you will get your saving targets. It will also help you in distributing your savings in a proper manner towards:
It is not as tough as you think. Once you have an understanding of investment basics, you’ll feel much more comfortable and confident in making financial decisions. Remember it is never too late. Even small adjustments to savings rates or investment plans can have a big impact over a long period of time. To help you get started, there are numerous tools, tips, and articles available online and offline that can help you take your financial knowledge to the next level. Initially, this all may be confusing for you. Don’t hesitate to take some help from a reliable friend or investment professional to identify the right instrument for achieving your financial objectives.
Don’t be afraid to ask a question when it comes to investing your hard-earned money. Make sure to clear any doubt which comes to your mind as this will help you in two ways. Firstly, it may save you from losing money by investing in a bad/fraudulent scheme and secondly, it will help you compare and choose the best scheme according to your financial objective.
Diversify your investment portfolio into various types of instruments based on your age and risk-taking abilities. You should have a proper mix of Debt, Equity, Mutual Funds, Bank deposits, Pension funds, PPF, Term Insurance, Health Insurance, etc. so that you and your family can lead a stress-free and healthy life forever. Do remember that taking a bit of a risk at an early stage of your life is worth your while. Try to find that right balance.
Last but the most important, while you compare and finalise any investment option, it is very imperative to take into account
Always compare the net of tax returns between investments options under consideration.
Someone has very aptly said, “The speed of your success is limited only by your dedication and what you’re willing to sacrifice”. Your current small sacrifice may be the foundation stone for your successful and happy future. Being a homemaker and a successful multitasker, women must step forward in the area of managing finances. This simple list is here to guide you and make you the master of your universe in the true sense.
If you are a strong and financially independent woman looking for assistance in the matters of taxes, our team of in-house tax experts at H&R Block are here to help you. You can get all the support you need from tax planning and return filing to responding to tax notices.