Most women, it is believed, are apprehensive about long-term financial planning. Consequently, when making critical financial decisions, women defer these decisions to their spouse or other family members. However, circumstances have changed, and more women are taking control of their lives, particularly their finances.
You can only get on the road to financial independence by setting aside a substantial sum of money each month. And you can’t start saving unless you start keeping track of your costs. Without knowing where your money is going, it’s impossible to estimate how much you could save over time. Anyone who has achieved financial success will tell you how crucial it is to keep track of your costs.
The next step is to create a monthly budget based on your expenses. You can only live within your means if you have a budget. Saving, on the other hand, is where budgeting begins. Organise your monthly expenses around the money you set away (around 10 to 15% of your income).
So, let’s say you’ve been able to put some money aside. You should now concentrate your efforts on increasing the value of your savings. These funds must be placed in investments that will yield a healthy return over the long term.
However, before you begin investing, make sure you have an adequate emergency fund set away. In order to earn interest and have easy access to the money when needed, liquid funds are the ideal option for storing this money.
After that, you can decide whether to invest the remaining funds in tax-advantaged assets or stocks, depending on your risk tolerance. Maintain an eye on your investment’s expense ratio and try to keep it as low as possible.
When investing, don’t forget to set financial goals for yourself. This will assist you in determining an appropriate investment timeframe. To earn substantial returns on your investments, you should stay in them for at least five years. Investing should begin as soon as you start earning.
Insurance is viewed as a financial safety net for family members in the event of a loss of the breadwinner. It’s still a man’s job to be the family’s primary breadwinner. However, as previously stated, times are changing. Women are increasingly shouldering their families’ financial duties these days. As a result, people must protect their loved ones by carrying appropriate insurance in the event of their death.
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