Gone are the days when the man was expected to be the breadwinner for the family and the woman was expected to stay at home and look after the family members.
Today men and women are equal economically and socially. But when we talk about investment or personal finance plan, most of the women still depend on their husband/father to know about their investment or financial plans.
Today we will change this idea. We are going to talk about 8 very simple and easy tips of personal finance that every woman should follow!
Here are the guidelines
1- Make an investment plan
Investing is important. You already know this. What is more important now is to make planned and regular investments. Regular investments can make the difference between meeting your goals and earning you returns but may not deliver enough returns to meet your goals.
Planned investment involves anticipating what is the purpose of the investment? How much is the amount for that? How much can be invested and what is the time frame for investment? Also, choosing the right investment option is very important.
Today investing in a Systematic Investment Plan (SIP) is a great option. It not only serves the purpose of regular investment but also enhances savings. You can simply opt for a suitable SIP as per your goals.
Thereafter, the amount is automatically deducted from your account every month. This way you can easily plan your expenses with the remaining amount and invest regularly. Can’t get a better resolution for the new year?
2- Set your financial goals (and keep them high!)
Setting financial goals like children’s education, children’s marriage or traveling abroad with family brings a lot of clarity in life. Let’s say you want to buy a new bag, that too can be a financial goal of yours. For example if the bag costs Rs 5000 then you can make a strategy to save/invest 5000 in 5 months to reach your goal.
3- Save! Save! And save a little!
Let us remember the time when our mother gave us a piggy bank. Little did we know that as an exercise our mother taught us one of the most important financial lessons of our lives- the habit of saving. He not only told us this, but also set an example by example.
Think about the time when our mother used to have a small pot containing money or she used to hide money in kitchen utensils. If you don’t save already, keep 2033 as the year of calculation. Let us resolve to develop the habit of saving regularly. You never know when it might come in handy.
4- Leaving savings idle is like inviting financial disaster
As an extension of the above point, you should also take care not to keep your savings inactive. It is very important to invest your savings. You can invest your savings in equity, mutual funds, gold, real estate etc.
Today people are moving away from traditional methods of investing to a more dynamic path and you should too. However, make sure to invest according to your risk appetite and return expectations.
5- Manage your date
In the age of credit cards, many of us end up overspending. As per reports, most of the Millennials have at least one type of loan. Some of the common types of loans can be home loans, auto loans, personal loans or education loans. The convenience of easy availability of credit has given rise to the problem of taking loans.
For example: Suppose, you see a beautiful dress in a mall. On looking at the price of the dress you find that it is expensive and beyond your fixed budget for the month. As you
were trying to solve the dilemma whether to buy the dress or not, the seller says that the dress will look very beautiful on you. You convince yourself to do so. You tell yourself that you can always use a credit card to make purchases. You swipe your credit card and happily buy the dress. Credit cards are there, but the regular habit of doing so can be harmful.
6- Life Insurance (Stay Insured, Be Sure!)
You must have heard the saying ‘Jaan hai to Jahan hai’. It simply means that there is nothing greater than one’s life. A life insurance policy provides a financial protection circle
for your loved ones, helps in tax savings, provides a sense of financial security and obviously provides peace of mind. Regardless of your salary or your network, you don’t know what tomorrow will bring you.
Hence, life insurance is probably one of the most important investments that every individual must make. For new earners, this should also be one of the first investments.
Remember, life does not come with a guarantee card and thus as a responsible family person you should invest keeping in mind the needs of your family members. Term insurance is very famous. Although,
Choosing life insurance is as much a responsibility of a woman as of a man. As a woman of the 21st century, you must ensure that not only you but every member of your family has life and health insurance.
What factors affect life insurance?
1.Health
2.Age
3. Term of the policy term
4. Amount to be covered
5.Whether the insured smokes
7- Tax saving or tax saving is necessary
If you are a working woman then this point is very important for you. What if we told you that you can save around Rs 50,000 – 100,000 in taxes through investments. That would be amazing, wouldn’t it? Don’t worry, even if you are not a working woman, it can be extremely useful for managing taxes of other family members. In this regard, it is important to understand how we can invest not only to earn returns but also save taxes at the same time. are you surprised? Yes, it is not only possible but also completely legal. You must be aware that all individuals and salaried professionals are eligible for deduction of Rs 150,000 from their taxable income under Section 80C of the Income Tax Act.
Best Tax Saving Tools for You
A. ELSS
Equity Linked Savings Schemes (ELSS) are a category of mutual funds that intend to encourage long-term investments in the equity asset class. Investment in ELSS is tax deductible up to Rs 150,000. However, this investment instrument is unique in that it has a lock-in period of 3 years. This means that any investment made in an ELSS scheme cannot be withdrawn before the minimum period of 3 years.
b.ppf
PPF stands for Public Provident Fund – a fixed interest scheme in which the government fixes the interest rates. PPF is considered to be one of the safest investment schemes in India, as it is backed by the government.
C.National Pension Scheme
National Pension Scheme, also known as NPS, is a contribution based pension scheme launched by the Government of India. Simply put, it is a system that encourages continuous savings during working years to build a large corpus after retirement and acts as a savings-investment tool.
Though it offers a tax incentive of up to Rs 2,00,000, it comes with a long lock-in period (also one of the longest). This makes the investment liquid. Also, the entire amount is not available on retirement.
40% of the NPS capital (or 80% of the total pooled capital in case of partial withdrawal from NPS) is to be mandatorily invested in an annuity or annuity.
8- Create an emergency fund
As the word says, calamity can strike at any time. You are required to deposit a small portion of your income/savings in an emergency fund. On the other hand, lack of emergency funds during an
unfortunate event can lead to great stress which requires a huge amount of money immediately. An emergency fund comes in handy in such situations. It is advisable to set aside 3-6 months’ expenses in a bank account to set up an emergency fund.
Why you should plan your financial future
Financial planning is not limited to what your husband decides to do for your family or for you. Contrary to popular belief, women are amazing when it comes to personal financial planning. Have you not seen your mother planning the household expenses? Meticulous and forthright, his calculative spirit can save you from famine!
Whether you want to send your kid to a big college or buy that designer jewelry you’ve been eyeing for a long time, then following these 8 simple steps can bring you much closer to your financial goal. Invest and be happy!!
