Men are real financial dare ones who are brave enough to like risks, but women are very cautious and try to see the world in different way. It is said that the men belong to be more risk friendly when compared with women. But the way the women thinks always enhances unique power to decision making process. A National Center of Women and Retirement Research (NCWRR) study shows that there is direct relation between women’s personal characteristics and her financial habits. OK still you are unable to accept that women are better finance managers. Let me raise you some questions to think about
- Who runs the home?
- Who else manages the payments of household activities?
- Who adjusts a little money in bringing all groceries and necessaries to family?
- Who saves each and every penny scrapes as a back up at the time of need?
I think you can imagine the person in mind. No need to tell answers to above question.
No doubt men earn for family. It doesn’t matter how much you earn, but matters how much you save. What ever may be the salary or wage women try to allocate this little salary to meet number of burdens. Iam not boosting the trumpet of women. It is the strategy and tendency of a women by birth. Even in our Vedas and Upanishads they talked about women in decision making process. A Wife should help her husband in making priority and profitable decisions. Even in financial matters also. No one gives better decisions other than wife ( Women).
What is a saving:
Savings is termed as income which is not spent. In equation terms
Income – Expenditure = Savings
But, helpingwives.com has given the following equation about how to save money effectively. Here is the equation
Income – Savings = Expenditure
From the earned income, you have to keep certain amount aside for savings and remaining you need to spend on expenses. This will be possible if you have monthly targets and deadlines to meet.
1. Try to plan your Investments:
It is known fact that making investment is important. But unknown fact is how to plan for investments and regular targets. we need to know the
- What is the main aim of investing?
- How much amount is required?
- What time horizons are required for investment?
Now a days investing in SIP (systematic Investment Planning) is good option. We need to plan where to invest may be on gold, real estate, stock markets or banks etc. One key point we must notice is risk factor. Check out SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis of each thing and invest accordingly. The finest of all investments you can do is invest in yourself, because the more you learn, the more you can be able to earn.
2. Save, always save, save a little more:
The best and important way to save money is not to lose it by any chance. Try to minimize all your expenses. Inculcate the habit of buying what you need. In this scenario let us try to get all the memories where our mothers gave us piggy banks, puppy house to save little money. Parents try to inculcate the habit of saving in children from childhood. You never know what this penny amount saved comes to. Our mothers used to save a little money secretly in jars or notes hidden secretly in kitchen.
3. Pay less:
Paying less means I am not telling you to bargain with vendors for Rs.10 or Rs.5. Some tips by helpingwives.com
- Make a car pool instead of having your own car. It results in saving money and also good for environment. Then analyse your savings.
- Always try to cook at home. You really dont know how much you are spending on outside food. Let us be clear with an example:
Consider for Break fast =Rs.50, Lunch = Rs.100, Snacks = Rs.50, Dinner = Rs.150. The total amounts to Rs.350 which is for one day.
Now for a month 350 * 30 = 10,500
Imagine for a year 10500 *12 = 1,26,000
I think you got it right.
3. Try removing all subscriptions like dish box, newspapers etc if you don’t need.
4. Tax savings:
Tax savings are merely meant for working class or salaried employees. you can save your amount up to 50,000 – 1,00,000 in taxes by the way of investments. It is known fact that all salaried professional are eligible for deductions of 1,50,000 from their taxable income under section 80C of Income tax act.
Best tax savings:
- ELSS (Equity Linked Saving Scheme) 15-18%
- PPF (Public Provident Fund) 7-8%
- National pension Scheme 12-14%
- Senior citizen saving schemes 8.7%
5. Create a emergency fund:
Our future is not in our hands. Emergency can occur at anytime. This fund is must to save up a small portion of income as saving in emergency. It should not be in form of asset or materials. It should be a liquid cash. Always maintain an emergency fund. These will help you in unfortunate situations, as we need a safety net between you and life. Don’t use this for anything other than emergency. It is recommended to save your 2-3 months salary as emergency.
6. Life Insurance:
Nothing is greater than ones life. A life insurance policy provides financial security to you and your loved ones and also helps in tax saving. With this we can have a peace of mind as we have a financial security. Remember one point life does not come with guarantee card. So always consider needs of the family. Ensure that all should have life and health insurances.
7. Managing your debts:
In this trending world we always ends up in over spending by using credit cards. For example we have seen a particular thing , you easily swipe a credit card and happily purchase it. If it is very rare case it is fine, but if it becomes regular habit then you have to face many problems.
8. Keeping money idle is a Financial disaster:
Don’t keep money just like that. What is the use of keeping like that. So, women be cautious always invest on some thing which you return gets income. In short
- Make your retirement plan
- Reserve fund to maintain a family
- Keep some amount for oldage expenses
- Invest on your health plans
Also read : How to earn money on Instagram in simple steps
Women always keep in mind to save for better tomorrow. One thing keep in mind that never always depend on single income, try making investment to develop a second source without fail. If you make investment money or buy things you do not have necessity. Very soon you will have to sell everything you may have.
Helpingwives.com wishes you Happy saving and happy investing.