Here’s how housewives can manage their finances more efficiently

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Remember the time when demonetisation happened? We got to know some new places in our homes where our moms had consciously kept aside some money, probably for the unforeseen emergencies. Well, one thing is clear, post-demonetization, homemakers started keeping their money in the bank account, at least. 

To be financially independent is the greatest pleasure of all. And for those who manage their homes smartly, managing their finance won’t be a tough task to do. But, is keeping the money in the bank account enough? With the rising inflation, your money may lose its value. So, how else can you save and make your money grow?

Pratibha Girish, Financial Planner, Finwise Personal Finance Solutions, answers a few questions on how housewives can manage their finances more efficiently.

What formula should housewives follow?

The best way to save is to set aside a fixed amount of money each month. Save before you spend. Invest the amount set aside and spend the remaining. It should ideally be a percentage of the amount spent on living expenses. It should be pre-decided and one should have the discipline to stick to it even when lifestyle expenses increase.

Are there any investment options available for the housewives? 

Mutual funds are very convenient and ideal investment option for housewives. It allows you to invest small amounts, helps you invest in equity, debt or gold. Given time, compounding works it’s magic to create a tidy sum.

How can a homemaker become financially independent?

In order to be self-sufficient, it is important to be a disciplined investor and not dip into your savings for discretionary expenses. When you put aside a fixed amount and give it enough time to grow. In a few years, you will have a good corpus from which you can withdraw monthly for personal expenses.

Most important contribution by housewives according to me is to be totally involved in the financial decisions of the family. I have noticed that the journey towards financial freedom for a family is much smoother and faster when the women of the house are involved in the decision making and monitoring.