Do you ever wonder how women from
any strata of society, are able to accomplish this well?
How is a common housewife able to
manage her household in whatsoever budget, she is given?
On a small-scale, women have
always well proved their potential to be better money managers.
Let us illustrate a scenario as
an evidence of this concept. If we look at banks and other micro finance
institutes, it will not be uncommon to find these organizations readily lending
money to every next door woman in the house. Does this still makes you ponder?
Decide your financial
Future; or someone else will:
Personal financial planning is
one of the significant things in every women’s life. Planning your own
financial future will offer you enormous set of benefits. Even with these
benefits being clearly apparent, many women (including the working ones) still
leave their financial matters on their fathers or husbands.
You may raise a question here.
What will this planning ensure us with?
Let us answer this question with
an example. Consider an Indian family going for its first vacation abroad. It
is obvious for any and every Indian family to plan their holiday well in
advance. Like a vacation, every successful aspect of your life requires
planning including your finances.
Of all, personal finance planning
can be regarded as the most important as it can be a key to our and our dear
ones’ future. Thus it should not be taken at ease. Rather, it should be
stabilized and considered various aspects including one’s short and long
term goals.
Let us here pay our attention to
some very simple and easily attainable steps,for any and every contemporary
woman,to ensure her finances for a safe future.
1. To
understand your financial needs:
This is the
primary step, for which a women must build up a relevant plan. For the same,
begin with finding answers to the following questions:
§ Ask
yourself if you are actually aware about your cash flows (incoming and
outgoing)? This necessary information will help you be aware about the surplus
or deficit at every month end.
§ What
is the difference of the cash inflow and the expenditure, to calculate your net
savings?
§ Then,
determine how much of your income is being saved (savings ratio)?
§ Do
you earn, just to save? Are you also investing alongside?Investment can be
understood as saving with a fixed agenda or plan.
§ Are
you informed of how much interest value is your bank deposits generating?
§ Do
you have your emergency funds (at least 3 to 4 times of your monthly income) in
place?
Having all this,
you can step on to the next level for your personal financial planning.
2. To
identify your family financial goals:
Let us gain
understand this step via putting forth certain questions before ourselves.
§ Is
my family and I insured well? Do we have an income replacement, if any of the
income generators in the family passes away?
§ Do
you have an assured sum for retirement? Do not live under a delusion that your
children will be your retirement plan.
§ Are
you saving enough for your child’s higher education or wedding?
§ Are
you well prepared for additional liabilities, like your housing loan, care for
parents or in-laws?
3. To
evaluate investment options:
Be rational and
reasonable, while considering investments. Before making any decision,
contemplate upon: Who is my investment advisor? Is he someone trustworthy, or
professional, or just a known someone?
Conclusion:
Discussed were a few questions
and points that every woman should lay her thoughts upon. All these questions
discussed need persuasive answers, for assurance of a strong ‘personal
financial planning’.
The author is Ramalingam K, an
MBA (Finance) and Certified Financial Planner. He is the Director and
Chief Financial Planner of Holistic Investment
Planners
(www.holisticinvestment.in) a firm that
offers Financial Planning and Wealth Management. He can be reached at ramalingam@holisticinvestment.
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