Though the gender gap exists from the professional field to personal lives, yet women are not far left behind in terms of taking responsibilities at home and outside.
The global UN theme for 2021 International Women’s Day is to achieve an equal future in this world.
While talking of achieving equality, managing finance is an important issue to discuss.
Gone are those days when women were considered to be shopaholics and depended on their male counterparts. Present day women can manage money in a better way. Many women are also better at managing finances than their partners.
However, not every woman has the financial knowledge to manage their finances efficiently.
So, here are a few tips for the women to be better money managers.
Educate yourself financially
The first step to do it is to plan your family budget proactively. Hands-on-training always helps. Practice will make you perfect. It doesn’t matter whether or not you’re contributing to your family income. Even if you’re not earning a substantial income every month, then also you can plan the family budget. Take into account the income from all sources and plan a budget that every family member can follow. A woman is more likely to understand the necessities of family members. So, she can plan a budget in a better way to satisfy the needs of the family.
Build an emergency fund
Do you already have one? If so, then calculate how much you have and how much you require to save. Can you sustain for 6 months without any income with the amount you have? No? You need to deposit the remaining amount.
To do so, plan a budget that can help you save a substantial amount every month.
And, take the charge in your hands. Do not let anyone use the funds unless it’s an emergency. And, once you have to use it, replenish the amount asap.
Calculate your net worth
You need to have an idea about your net worth. To do so, calculate the value of your home along with other assets you have. Make sure you take into account the investments you and your spouse have. Add all the things to calculate your net worth. If required, talk to a financial adviser, gathr knowledge about investment options, and plan your nest egg properly.
Set your financial goals
Have a date with your spouse at least once every month when you’ll discuss financial issues. Set your goals and plan to achieve them within a deadline. Set short-term targets to check whether or not you’ll be able to achieve your goals within the set timeframe. Plan your actions accordingly.
Repay debt if any
In today’s world, rarely do we buy homes with an entire down payment. We rely on credit. So, you have to be current on your home loans and other secured debts. But, if you have any unsecured debt like credit cards, personal loans, try to pay it off as soon as possible. Compare the debt relief options you have and choose a suitable debt relief strategy to repay outstanding balances.
Have required insurance policies
Adequate insurance policies can save you from falling into debt or using your emergency fund. Therefore, talk to a financial advisor and assess your insurance needs. Based on that, you can cut down coverage or add coverage to be stress free.
I will go on saying to manage finances since I have so many things to discuss. But, let’s stop here for today. These are the basic things you need to consider. We can discuss a few more aspects later. So, keep an eye for it.
Before ending the article, I would like to mention that do not be too harsh on yourself. Enjoy your journey of achieving your financial goals and dreams.
All the best!