True empowerment of women may not be possible unless a woman takes active charge of her personal finances irrespective of marital status. It’s time to reflect more on financial empowerment of women. For this, it is necessary to chalk out a basic financial management plan and start making investments. However, managing one’s money is no cake walk and neither is it a very enjoyable process. In this article, we give you some of the best tips that will simplify your personal finance life and help you better manage your hard earned money.
1. Take Charge Of Your Money:
In today’s digital age, making investments and tracking your spending is not as complicated as it seems. Start by taking a few simple steps like setting a monthly budget and identifying financial goals, both long-term and short-term. So, how can you take charge of your money? By:
- Having control over all your financial decisions
- Starting the financial planning process as early as possible
- Taking time to learn about basic personal finance
- Doing independent research about investment plans and savings plans
2. Get Some Help:
It is true that it is not easy to manage every aspect of your financial life. It can be tricky and confusing to say the least, and this is why you need help. The solution: A personal financial management app. There are many apps out there in the market that can help you effortlessly manage money in a much better manner. I would personally suggest the BankBazaar App. It’s one such personal finance app that can help you get the latest financial news and tips, manage and track your money spends, check your credit score anytime and much more. You can also compare and apply for a number of financial products such as personal loans, home loans, car loans, and investments like fixed deposits.
3. Do Intelligent Financial Planning:
When it comes to money, it is important to make some smart decisions. The first thing to do is to save a significant amount of your salary and create a category of all the expenses that you may have in a particular month. This way, it is easier to maintain a good income to spending ratio. Some of the other tips are:
- To have separate saving and spending accounts
- To save a certain fixed amount from your salary each month
- To set a budget only for monthly expenses and try to stick to it
4. Be More Financially Assertive:
While most women want to make investments and have a good financial portfolio, many lack the confidence to actually go ahead and make an investment independently. This is where women tend to get more conservative about their money and tend to take a back seat. This should never be the case and women should:
- Be assertive and take a decision without being influenced by the opinion of other family members
- Do not just do what others are doing, ie: invest where your family members are investing
- Create a diverse portfolio of financial investments
5. Create An Emergency Fund:
Last but not the least, it is very important to have in place an emergency corpus that will truly give you the financial freedom to make decisions in life. This is necessary in case you want to take a break from your career for childbirth, for example. To do this, you will have to:
- Have at least 6 months to 1 year’s pay saved up in your savings bank account
- Do not spend money from this savings pool at any cost
- If you are yet to create an emergency fund, do it at the earliest
To sum it up, women should not ignore the importance of good financial planning. Those who have not yet thought about drawing up a plan to manage their earnings, should do so at the earliest. Refresh your financial goals and simplify your personal finances!