It is alarming that many insurance companies have unclaimed policies since the family members are unaware of the existence of the polices or are ignorant about process of availing the benefits. So “ignorance is certainly not bliss”. Women like to spend on accessories and on outings. However, despite growing awareness for financial independence among women only 1 in 3 women take their own financial decisions as compared to 2 out of 3 men, even though top goals of men and women are similar.
Today, the number of women who contribute to the household finances, as an earning member, has been increasing manifold. Indian PM has appointed a women finance minister.
The money has four forms. Money earned, spent, saved and invested. Most women actively handle money in all the above form except the last one, i.e. money invested.
Why women should take charge of their finances:
Life expectancy of women is higher
It is a globally true that women live longer than men. That would mean a higher retirement corpus will be required to account for the longer life span. Longer lifespan also mean higher expenses on health care, which need to be planned for.
Women tend to be more conservative with investments
Generally, women are averse to taking any kind of risk and prefer safe investment routes. They are happy to accumulate lower return instruments for higher safety. But this limits the ability to build meaningful wealth.
Now, women should wake up and shed lethargy to manage money.
What can women do to ensure they are in total control of their financial future?
- There is nothing complex about investing and finance. Idle money loses value, while money deployed rightly enhances value. Money is energy. Don’t hoard money, energy needs flow. Let it flow in the right direction for two basic purposes, growth and income.
- Learn and be with the latest technology, secure your bank account.
- Set a corpus for yourself or invest in your name.
- Take active part in the family financial decisions.
- Take help of a trusted financial adviser to give you unbiased guidance matching your goals and needs.
- Do not over accumulate assets like real estate, gold, silver and such stuffs. Today women are secured with their career and don’t need gold as security as once it was.
- Do not be obsessed about passing your wealth over to your children. By all means support them in their growth.
- Allocate your saving between income and growth investments.
- Keep all the paperwork properly.
- Do not pass your wealth easily to anybody.
- Start investing early for your goals. Choose investments that build wealth, keeping in mind the goal’s time horizon.
- Protect your incomes through adequate life insurance.
- Have a health insurance policy.
- Keep a contingency fund ready for a break that you may need to take.
- Keep all the paper work in order. Ensure nomination for your wealth and investments.
- Close unused accounts.
Invest time and effort in understanding the basics of finance and your family’s personal finances. Ensure you are not carrying dud investments in the name of safety. Keep record of all your investments which should be accessible to your near ones. Take time to understand and make note of your plan for retirement and review it without fail.
Be wise women, money-wise.
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