Top 10 Financial Planning Tips For Women

Gone are the days when financial planning was the responsibility of a man. Now women are equally financially stable and independent. 

Whether as homemakers, self-employed women, or working professionals, women are becoming increasingly astute in financial planning. Although earning income is a part of financial independence, real stability comes through money management.

Financial planning, in reality, is beyond saving a chunk of monthly salary. It is also about having a long-term wealth goal for a secure future.

Women often plan everything ahead of time. It’s time to now create a plan for financial stability and security. 

Here are some tips to help you achieve your financial goals;

Top 10 Financial Planning Tips For Women

1. Plan Long-Term Goals For Your Retirement

You must already be saving a percentage of your salary each month. That’s good, but that won’t be enough.

Various studies have proved that women live longer than men. And, women’s work-life span is shorter.

We have often come across people who only plan to build wealth until they are, say, 78-80 years old. But what if you live longer than that? What will you do for the next 10 or possibly more years without proper financial planning?

Additionally, women face various challenges in their professional lives. Many women give up their jobs to look after their house and children. On top of that, women often have a lower pay structure than their counterparts. 

As unfair as it sounds, women have fewer resources and less time to build wealth. However, overcoming hurdles and having a secure financial life is achievable. 

You can start building wealth for your retirement by investing early. Allow yourself to think for a longer term. We would suggest adding 10 more years to your retirement savings goals. 

2. Stay Involved in Your Family’s Financial Planning

This is one of the most important tips we would give to all the women out there. Stay involved and stay aware of all your family’s financial planning. We cannot stress this enough.

Even if your husband is responsible for financial planning, you should also have a fair share of thoughts and knowledge.

Sudden circumstances such as the death of the partner or divorce may cause women to trip over finances. Now, who would manage everything? What about that car loan EMI? Or the home loan instalment? And there could be more.

At VNN Wealth, we have come across many women who had no idea about finances after losing their spouse. We have seen women struggle to manage sudden changes in life. While we were able to help them, we would suggest taking the necessary steps to be prepared.

To avoid stumbling across uncertainties in life, always stay on top of all your family’s finances. 

3. Save Every Month Via SIPs

Although women have great money-saving skills, they don't invest as often. As said above, saving is not enough. You must actively invest too. 

SIPs are the best and easiest way to start building wealth for you and your family. You can invest a small amount of money each month in equity or debt mutual funds. Even INR. 500/month can make a huge difference in the long run. 

Additionally, mutual funds via SIP with compounding interest can exponentially boost your return.

If you already have an investment portfolio, get it reviewed to receive personalized investment tips. VNN Wealth provides complimentary portfolio reviews and our advisors can also help you create and build a portfolio from scratch. 

You may also like- Top 5 benefits of SIP.

4. Invest in Paper Assets Instead of Physical Gold

We Indians have always been buying gold jewellery as an investment for rainy days. But we are also sentimental about the jewellery. Who would want to sell those beautiful earrings that your mother gave you on your wedding day, right?

Understandable! But not so much reliable.

Instead, invest in Gold ETF. Not only will you save making charges but it’s easier to sell too. No sentiments attached is a plus point. 

5. Keep Track of Expenses and Taxes

Expenses come and go as they please. You wouldn’t know where all your money went without keeping a track of it.

Create categories of expenses and assign a budget for each category. Cut down on unnecessary expenses and maintain an expense sheet. It will help you stay within an assigned budget, but will also help you file taxes.

Taxes are both tricky and fascinating. You can save a lot of money with an effective filing of taxes. You can also invest in various tax-saving instruments to save more tax.

6. Separate Financial Support For Your Family

Family emergencies can knock at your door anytime. You may need to arrange money or break your fixed deposits for your family’s well-being.

Keep different investments for you and your family. Take your family and children’s future into consideration. You may want to create separate savings for your family’s healthcare, children’s education, and your own well-being. 

Don’t sell your retirement funds or personal investments sooner than you had planned. The biggest mistake people often make is the early withdrawal of funds. Not only does it shake up your portfolio, but you will also lose potential returns on those funds. 

Instead, build separate financial support for your family. Don’t sell your funds in a panic.

7. Don’t Forget About Expenses During Your Old Age

Today, you are doing everything in your household. Tomorrow, you might not be able to do it.

Old age can cause quite a few difficulties. You may need to hire a househelp or a full-time attendant. You might not have as much energy or health as you have right now. Expenses in your old age might cause a solid dent in your savings if you are not prepared. 

Always plan ahead of time for such expenses for your family and yourself. 

8. Health Insurance Plan 

Many companies often provide health insurance to employees and you may already have it. However, we would advise you to also buy an external health insurance plan for you and your family. It’ll help you cover medical expenses without burdening your savings.

Many health insurance companies offer better coverage if you buy it early in your life. 

While buying health insurance, don’t forget to get life insurance. Be sure to include critical illness or disability in your life insurance as an added support to your health insurance.

You can also opt for whole-life insurance coverage to provide financial support to your spouse. That way, your surviving spouse gets a payout.

9. Re-Evaluate Your Financial Plan Periodically

The expenses you have today may change in a few years. Expenses after getting married, having children, and growing older will be different and probably dramatic.

By re-evaluating your financial plan, you will be able to consider newly added expenses. Update your investment portfolio accordingly.

10. Quick Money Saving Tips

  • Evaluate your money-spending habits to cut down on unnecessary expenses.
  • Unsubscribe to online/offline services that you don’t need anymore.
  • Keep track of your credit card payments, EMIs, and loan installments. 
  • Use your credit card benefits and rewards to save more on each purchase.
  • Set a spending limit on your debit/credit cards.
  • Be vocal about your financial goals with your spouse/family, so you can align your goals. 
  • You can also consider hiring a financial advisor for your family. Here’s how to choose the right financial advisor. 

Plan Your Finances Today!

Have you ever seen your mother or grandmother save money in her rice container? Whenever she could, she would keep a small amount safe somewhere for rainy days.

Women have always been excellent financial planners. However, there is a considerable gap in the technical financial knowledge between men and women. In fact, more than 90% of women in India, do not actively seek financial knowledge. 

It’s time to take it up a notch, ladies! Reading financial news, investment/personal finance blogs, or reaching out to financial advisors can be your next step.

Plan for your and your family’s financial security and well-being. Keep up with your expenses and taxes every year. Invest whenever you can. 

If you are ready to strengthen your investment portfolio, get in touch with our financial advisors. Evaluate your portfolio and rule your finances like a boss.