Financial Planning Tips for Women and Its Importance

Create a customised budget based on your goals and the time frames you desire to attain them in, taking into account your monthly/annual income. Starting by adhering to the 50-30-20 guideline is a smart idea. When you get your monthly income, set aside 50% for living expenses, 30% for investments and savings, and the remaining 20% for living the high life. However, this is not a fool-proof method but can prove to be an effective one, if followed religiously and realistically. By that we mean, making changes to the said ratio when needed and not blindly following to one strategy can make your financial health better than before.

You never know when an emergency will come, so having a fixed fund to counter an emergency is always important. You can set up automatic transfers to a separate account to ensure consistent emergency savings. Aiming to save at least 3-6 months’ worth of living expenses will be a great idea.

You must make wise investment decisions instead of saving money casually. Your investment strategy should beat inflation and generate enough wealth to allow you to become financially independent in the future, especially in your old age. Also, consider the risk factors, especially while investing in stocks. You can start your https://www.maxlifeinsurance.com/investment-plans/systematic-investment-plans, which is a comparatively safer form of investment as compared to a lump sum one.

Don’t let an emergency burn a hole in your pocket. Invest in appropriate insurance coverage, including health insurance, life, medical and accidental coverages, as they can also act as tax-savers while filing ITR. At the least of it, start investing in health insurance plans and a basic life term plan according to your budget at an early age, as the premium paid is lower at that time.

Plan strategically for retirement. This is where long-term investments like FDs (Fixed Deposits), SIPs (Systematic Investment Plans) and PFs (Provident Funds) will come in handy. Having a robust retirement plan is one of the strongest pillars of financial planning, especially for women.

Develop a systematic approach to manage and reduce debt, ensuring financial stability. Get rid of fixed expenditures like EMIs as soon as possible and try to limit variable expenditures like binge shopping (especially online shopping), and spending out of your means as much as possible.

You should keep a lifelong learner’s mind-set regarding financial matters as financial strategies keep changing. You should stay informed about market trends, investment opportunities and financial strategies. Never miss your insurance premiums, credit card bills and loan EMIs and update your investment portfolio as and when required.

Financial planning empowers women to take control of their financial needs, developing their independence and confidence.

A secured and stable financial future can be achieved by strategically planning for retirement, investments and unexpected life events.

By having a proper financial plan, career breaks or transitions can be easily funded. This is important in the case of women, especially owing to the pregnancy and post-pregnancy phase. This way, you can start your own venture as an entrepreneur.

Nothing is more peaceful than funding your own expenditures and following your personal and professional pursuits with your hard-earned money. So, say goodbye to dependency and be ready to fund your own future.