Prudently managing your finances is a basic necessity for everyone today. However, women in India are often overlooked, and they automatically take a step back when it comes to looking after money management or investments. In reality, financial planning should be a completely gender-neutral subject, and women, in particular, should be encouraged to learn more about it.
Here are 5 financial tips for the women to start with.
- Go for goal-based investments:
Everybody knows that investments are important, but investing in a planned and regular manner is even more important. The best investment advice for women is to figure out your investment objective, the sum required to reach that objective, and the time horizon you have in mind. This can also be called goal-based investing.
- Save smartly and systematically:
The habit of savings starts for a child when they keep money aside in their piggy bank. Similarly, you need to ensure that you save some amount from your income every month. Saving money systematically ensures you have a plan in mind for your aspirations as well as for any unforeseen contingencies in the future. It is a wise habit to inculcate to safeguard your future. You could invest in SIPs in a mutual fund plan to gradually and systematically invest towards your financial goals and achieve them in a timely manner.
- Insure before there is an emergency:
Many women today play the dual role of a homemaker as well as a working professional. Life is unpredictable, and planning for your loved ones’ financial security if you are not around is a critical aspect of financial planning. There are different types of life insurance policies available that can be opted for. But make sure you do not confuse investment with insurance.
- Know and plan your taxes properly:
Many women steer clear of this subject because they feel it is too complicated, but in reality, tax planning is pretty easy and can be learnt with a little help from experts. A good money advice for women is to do tax planning by investing in proper avenues. For example, section 80C of the Income Tax Act allows a deduction of up to Rs.1,50,000 on taxable income for all salaried individuals or self-employed professionals or businesspeople.
There are many tax-saving investment instruments too. Public Provident Fund (PPF) or Equity linked savings schemes (ELSS) are among such options that could help you optimise your tax outgo.
- Plan for retirement:
Retirement may seem like years away, but planning for the same needs to start early. Failing to do so may not leave you with enough resources in your golden years, and you may be forced to work later on. So, sit and plan for retirement by calculating the amount you would need to live a comfortable retired life.
Work on your financial plan
Women are taking the front seat in all walks of life. It is simply not enough to give the reins to the male members of the family and take a step back from managing finances. As women, you need to be the role models for your daughters so that when they grow up, they can confidently manage their money and live independently.
Future proof your goals with financial planning. To all women reading this, even if you start small, start now. If you need help planning for your future, reach out to a financial expert who can guide you in everything related to achieving your financial dreams.