While women multi-task between work, family and other interests, it is possible that they might ignore one of the key aspects of everyday life money. Here are a few things that every woman, as much as a man, should do, when it comes to money and personal finance.
Have your own bank account
Have at least one savings bank account in your first name and have your spouse or family as the nominee. While you may choose to have another account jointly with your partner, your primary savings can remain in your account. Similarly, if you choose to have a credit card, have one on your own. It helps building your own credit score and thus providing a quick record of your credit when you choose to borrow at any point.
Sit for the big decisions
Do not outsource all money and investment related matters to your partner or parents. If you choose to have somebody do it, then you must be aware of what is being done to your money. Faith is good but awareness is necessary. Whether it is for buying a house or taking an insurance policy or simply a discussion with your financial advisor or auditor, make sure you are present with your partner in all of these meetings and provide your views.
Track where your money goes
Keep track of your income and your expenses and track them every month to keep a tab of your spending. This way you will know how much you can save and also know your expenses, if they seem to cross your monthly average spending.
Start early for kid's education
Whether your partner initiates it or not, you need to have a talk about saving up for your kid's education and start as early as possible and keep it going regularly. Thinking about saving for your kid's higher education when he/she is 15-year-old can be a case of too little, too late.
Be independent post retirement
Don't forget that you need to put your feet up sometime. The first thing here is to make an estimate of how much you need when you retire. Consult an advisor to know this and then understand how much you would need to save up. Do not forget that you have to race against inflation and therefore save up enough to ensure that you are able to meet the rising cost of living in your retired life, independently, without anybody's help.
Saving is not enough, invest
You can be good at saving, stashing surplus left after every month's expenditure. But your money will not multiply unless you invest them in sound, tax efficient wealth building options. Otherwise, your money might just lie in your savings bank account yielding a measly 4%! Or they may get into unregulated gold plans a number of which are going bust now.
Invest in regulated products
The traditional bank deposits and post office schemes or gold may be your favourite investment options but remember, there are more contemporary, regulated and far efficient wealth creating options such as mutual funds, bonds and equities to help multiply your money with lot of tax perks as well. As there is sufficient information available on these in the web, make use of it to do your bit of homework and explore these products to diversify your investment options.
Don't hurry into buying a home
While the emotional aspect of buying a house cannot be ignored, whether you can service a loan comfortable for the next 10-15 years is not something that you may give a thought to.
If you have taken a home loan based on double income, consider that you may take a career break and the income generated in the family may go down. Also, ensure you have marital stability before you decide to buy a house together with your spouse. Legal turmoil over property is something best avoided.
Insure yourself
Every earning member in the family as well as the homemaker should have a basic term cover. Check with your spouse if he has one and ensure you are also adequately covered. Know what the terms of the policy are and ensure that at least 10 years of income is covered, to help tide over any such unforeseen event.
Manage your finance online
When you have a family to care for, the often used excuse is that you do not have time to manage your money. Using online ways to invest, track and redeem makes your investing life hassle free. Adopt such online ways that come tagged with advice through mails/chats or calls. This can immensely reduce your effort and yet provide you with a super smart way to stay invested and also manage the finances jointly with your partner.
(The writer is Head, Mutual Fund
Research at FundsIndia.com)
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