Money Management Tips For Indian Women That Will Help Them In The Long Run
Financially independent women put themselves in a position where they can take care of themselves and don’t have to rely on anyone else.
In India, many women are homemakers and depend on their spouse for their financial needs. This creates an unequal power equation between the husband and the wife, which is disadvantageous for the latter. While taking care of one’s household is a personal choice, it shouldn’t stop women from being in the know about money management.
Here are some money management tips that every woman should know:
Create a budget
If you want to have a good financial safety net and have enough money to save every month, budgeting is the way to go. We understand that creating a budget is not the most exciting thing to do with your money. But defining a certain number for expenses is important unless you want to splurge mindlessly. Create a monthly expense sheet and ensure that you do not go above that number. The money that you save after your expenses needs to be dealt with: allocate to an emergency fund, put into savings, or invest.
Manage your own money
Asking your father or brother to take care of your finances might seem like the smartest thing to do, especially when you are in an Indian household, but it’s not. It is pivotal that women learn how to manage their money. While you can certainly take help from others, ensure that you learn the basics of money management and keep getting better at it. Be scrupulous when it comes to your finances.
Cut down expenses
Saving money is akin to earning more. Write down a list of things that you think are unnecessary expenses. Do not eat out a lot because they can snowball into a big amount when you tally your expenses at the end of the month. Instead of going out to pubs and cafes, meet your friends at home as much as possible.
Start investing
The earlier you start investing, the better it is for your future. Even if you only have a few thousand rupees to spare every month, ensure that you put it somewhere. Think about your financial security. It is the only thing that can give you freedom if you happen to be in the midst of any unfortunate circumstance. Start with recurring deposits, fixed deposits, SIPs, etc., after which you can graduate into equity investments. You would have heard how compounding is the 8th wonder of the world. Let the money you invested simmer for a few years and you will be able to see the benefits from it.
Side hustle
Is there something that you are highly passionate about or do you have the requisite skill set for starting a business on the side? If it requires little investment and doesn’t take up too much of your time, then try starting a side business. It might rake in a lot of moolah or might end up being a damp squib, but you will learn a lot from the experience. For all you know, your second idea might be a big hit. There are plenty of options out there. Keep looking for opportunities that excite you.
Insure yourself
Pick a health insurance plan for you and your entire family. It is necessary that you safeguard yourself and your family members from any untoward incident. Look for insurance plans that double up as an investment opportunity with life cover. Once the term of the insurance ends, the money that you get will act as a cushion to run your family expenses and other things.
Create an emergency fund
Life is uncertain, you never know when you would need cash immediately for a medical emergency or to sustain after a job loss. You will be in a better place mentally when you know that you have cash to wade through an emergency. Most money management experts say your emergency fund should be at least six months of your expenses. If you have a corpus like that, you will even have the freedom to come out of a toxic job and start searching for another job without having to be stuck at one that you don’t like.
In a country like India where pay parity is lacking, it becomes even more crucial that women save their money. For women who come from underprivileged families, it becomes even more important to save money for themselves, not just for the family and kids.
Women need to understand that being financially independent gives you the power to choose a life that you want.
Money gives you agency like no other. Money can rescue you in the most unfortunate of circumstances. You can escape an abusive marriage, or a toxic job or family environment. If you don’t have financial backing, it becomes impossible to move out of all the above. Financial independence makes it easier to deal with problems.
(Edited by Teja Lele)
