Women these days are far more independent and financially aware than ever before. However, there still seems to be a gap in the increasing earning-capacity of women and them being in control of their finances. Probably it is the multiple hats a woman has to don from corporate leaders to mothers, to business owners and household managers, that causes her to not prioritise financial management. But the fact that a woman juggles many roles at the same time is exactly why she needs to be on top of her finances and contribute to not just her family’s financial management but also her own. Whether you are a working woman or not, to help women streamline their finances and manage them efficiently we have outlined a few easy steps to achieve this.
Prepare a monthly budget
Directly charting out an out-of-the-blue budget may not be the best way to approach this. Make a note of every little expense like your rent, food expenses, utility, movies, shopping, etc for a month or two. Once you have a fair idea of what your monthly expenditure looks like, prepare a budget with the essentials like rent and food, and reduce the amount you set aside for frivolities like shopping and eating out.
Have an emergency fund
Once you have a monthly budget in place, set aside 5-10% of the remaining funds into an emergency fund. Make it a point to leave this fund untouched so that you have enough resources to tap into in case of an emergency. It’s important that you save up for a rainy day!
Invest your savings
So you have some money left in your account at the end of the month after all your monthly expenses and putting money in your emergency fund. What do you do with it? Leave it till you spend it all on shopping the next month? That’s indiscretion right there and we’re sure many of us are guilty of this. But fret not, it’s never too late to start investing. Here’s a little something that’ll help investment newbies to invest!
Have investment goals
We all invest money to grow our money but what is the purpose? What do you need this money for? Is it for your kids, is it to travel the world or is it to lead a comfortable life after retirement? It’s important to ask yourself these questions before you determine the investment route best suited to your goals.
We women often rely on our significant others, parents, or brothers to plan our finances for us. Times have changed, we’re independent and educated, and it’s about time we took matters in our own hands. Educate yourself, read articles, subscribe to blogs and if nothing else works, talk to a certified financial planner who can help you manage your finances. Managing your finances is as crucial as having a great career.
Never hesitate to ask for a raise
Though this is not essentially a part of money management, it’s something that applies to all women everywhere. We somehow tend to shy away from asking for a raise at our workplaces because we think we don’t deserve it. Ever wondered why men earn more than the women with similar profiles? Sexism and gender inequality aside, they ask for a raise! So, the next time you think you deserve a raise, take a deep breath, let that confidence shine through and walk up to your boss!
Financial planning and management is no rocket science. All it takes is to have a clear idea of your current finances and use that knowledge to plan for a financially sound tomorrow.