Women: Have You Decided Top Financial Priorities?
Decades ago, women were mainly housewives and homemakers in our society. However; the situation has changed very much. Women are lawyers, engineers, scientists, and so on. But are they financially sound and knowledgeable?
According to an Experian research study, women have 3.7 percent less average debt than men. They have an average credit score of 675 compared to men's score of 670.
So, we can see there is somewhat financial literacy among working women. But still, women today find it challenging to decide their top priorities. “Don't depend on someone like father, husband or boyfriend, for your everyday financial needs. Educate yourself about rupees management and finance investing.”
Our society needs to do several things which will empower and make them financially independent, and for that below we are mentioning several points.
- Financial literacy,
- Create an emergency fund,
- Retirement corpus,
- Setting a financial goal,
👍 Financial Literacy:
Understanding of basic financial concepts allows a person to know how to monitor in the financial system.
People with essential financial literacy training/knowledge make better business decisions and manage money better than those without such specific training. Raising interest in managing finance is now a focus of government-run programs in countries including Australia, Canada, Japan, the United States, and the United Kingdom.
“Don't use the money to make yourself feel good. That type of high is fleeting. Instead, do things that promote self-respect.”
👍 Create emergency Fund:
Emergency fund is a collection of money set aside of your regular life to cover the financial surprises that pops up suddenly in your life. These unexpected things can be stressful and highly costly. Here are some of the top emergencies people can face: Job loss, Medical treatment emergency, unexpected travel etc.
So, this is highly recommended suggestion for everyone to set an emergency fund. Also, emergency funds help us in multiple ways: Stress Level down in emergency, it keeps away us from spending unnecessary expenses and etc.
And for creating emergency fund start investing in mutual funds like: HDFC Small Cap Fund, Reliance Balanced Fund and Etc.
“Spend less than you earn - it's the secret to creating wealth”
👍 Retirement Corpus:
This is a very frequently asked question by every professional. Everyone wants to know about this and it’s hard to say and calculate because people don’t know about life expectancy also don’t know about expenses.
Retirement corpus is very important for every human’s life because we can’t for entire life and can’t be dependent on others for this as we know old age can be a burden for others so we have to plan early for retirement corpus. So it is hard to say how much need to invest for building retirement corpus. But starting early and investing regularly is a key for this and investment should be according to target.
And for this a women should start investing in tax saving funds like: ABSL Tax Sever Fund, IDFC Tax Saving and Etc.
“See the Urge to Splurge and The Psychology of Spending Money.”
👍 Setting a financial goal:
Setting a financial goal is most important things for every individual because it makes us to be optimistic for being financially secure. And we can set financial goal with these 6 easy steps-
- Identify what matters for your requirements,
- Select out what within limits and what need more care,
- Use SMART (Specific, Measurable, Achievable, Relevant, and Timely) goal making strategy,
- Make a budget and start living accordingly.
- Keep eyes on everyday living and expenses.
- Learn from everyday money mistakes and don’t do that in future
“Don't let the fear of losing money, fear of failure, or fear of the unknown stop you from investing.”