“Financial Planning For Women”
Do you want Empty Purse Syndrome Or be Enlightened Money Users?
You could be sure that you visited the ATM just yesterday, but when you roam around the shopping mall to get those necessary things for home and open the purse, it’s again nothing.. And you still have bills to pay by credit card.
Its shoppers trap, you are already into.. It’s time to get you cash flow under control.
You can do this, Just change a few bad habits and recheck some of your bigger monthly expenses and no more unpleasant surprises at the look at card.
Money Funda #1
Most difficult to resist for all those Sale tag buyers. We’ve all been seduced by the lure of sale. After all, if prices are discounted, it’s your right to buy.
No… “Sale tags are great marketing strategy because they make consumers think that merchandise is marked down,” but that’s not always the case, says Christine K Walker, author of The Smart Mom’s Guide to staying Home. Beware, be sale or no sale, you are always emptying your pocket. People buy things just because they are on sale : clothes that don’t fit well, home furnishings that don’t match, says Walker. Remember before you buy that extra things, every time you take out money.
Money Funda #2
Going to the supermarket? Better make a list of the items that you need before going.
Mostly people end up buying the stuffs they don’t need when they visit a supermarket.
If you are one of those people it is time to check up on that.
Money Funda #3
Paying late fees?
Each time you miss a credit card company’s payment deadline, you risk much more than a one- time late fee.
Soon you may find your low interest charges have been shot up high. But it gets even worse.
Try to pay off your balance each month and send your payments early. “Check what bills have arrived each week and plan accordingly. Use electronic bill payment – it’s faster. Review your credit report annually to ensure there’s no misinformation on it, such as incorrectly reported late payments. When all else fails, call the credit card company. If you have good relations with them, they may waive the fee or lower the rate.
Money Funda #4
Many people unknowingly have too much in taxes withheld from their paychecks, and are overpaying throughout the year. People get so excited when they get a refund in April, but this isn’t found money, and it’s not a windfall. To determine how much you owe per paycheck, look at last year’s tax return. Go to your human resources department and ask for specific changes.
Money Funda #5
Not updating your phone and internet plans. Call the company of your present cell phone, long-distance and internet usage and ask about your current promotions. If you’ve seen a cheaper plan with a competitor, let your current company know you’ll make switch if it isn’t updated. When possible, consolidate your service, such as cable and internet or local or long-distance calls.
Avoid these classic money trapping sentences :
“Today i’m not in a good mood, so i should go to shopping. At the end there is no guarantee that it will lighten up your mood.”
“I will buy this time in sale and then I won’t buy anything for a while.” Sales are announced every now and then.
“I am alone now, so I don’t need to save.” What is the guarantee of future?
“My kid was being stubborn and I could not handle it.” Is it not a reason good enough to even spoil your child’s habit?
“I don’t have time to plan my taxes. My job is to earn.” How much time and would be wasted because of you being so irresponsible.
The attitude differentiates winners from struggling, the rich from the poor. Have and winning attitude to learn about your finances and you will able to do it like other multiple responsibilities.
Examining the nitty-gritty of your assets and liabilities, income and expenses is rarely fun, especially when you are not familiar with financial terms. Women don’t do it even when it is required. Self-imposed financial crises. The situation is worse than single mothers.
Why do women need to know about money?
With many women their husbands takes cares of their finances whether they are working women or home makers. I have studied many families closely. Wife’s hard earned money is is risked in investments by either their husbands or some elder member of the family without even having enough knowledge about investments. However it is not monitored well after investment. As a result in most cases money value diminishes over a period of time. In times of need women do not know how to deal with money. They don’t have the knowledge and in such scenario they could make some very serious mistakes which may lead impact life of children too. To avoid such silly mistakes women needs to empower themselves to get their basic financial fundamentals right. I always say, you don’t need to an expert in money but you need to understand the questions well so when need arises you get the answers also right.
What financial areas need to be on her mind?
Safety, security and growth are the important pillars of financial education. Getting educated in these pillars is like getting a hold of life line for happiness, well being and peace of mind. Some of the areas that needs to be attended are :
- Understanding of how money and how investment works
- How to operate important investments
- Having confidence about in times of needs which one of existing investment is to be used.
- How to decide where to invest
- Is there any insurance, how much insurance is required.
What financial questions should new mom handle?
Getting clarity on life insurance for long term investment need will be critical for new moms.
Planning is required on how to space out investment for future needs of the child.
Why don’t women more involved in their finances so they’re not surprised in times of crisis?
It’s something that not everybody’s interested in. Everyone divides tasks among their family.
If i’m handling the finances, maybe my wife is handling something else that she’s better at. This is the favourite lines by most men in the family. One of my woman participants lost her husband in an accident. She belongs to a wealthy family. She never had to worry about any financial matters. She never even bothered to find out how money is being invested and where is all the family money. She was dealing with the loss of her husband. However, life continues for her and her two children. When it came to paying the fees for their international school, she had no clue from where will the money come. It took her a long time to settle with finances. If she knew and kept interest in the family investments, her financial struggle could have been avoided.
Here are 5 things every woman should plan for :
- Saving for retirement needs
- Insurance for the main earning member of the family
- Medi claim for the entire family
- Diversified investment strategy
- Tax planning
Finally, I would say you can turn your financial life around if it is in a mess. Begin now. Be involved in the day-to-day management of your family’s finances, and talk about money with your spouse. Follow the rules of 3
Rule 1: Learn what you need to learn. Don’t rely on someone else. Educate yourself about money management and investing.
Rule 2: Keep rule 1 & 2 alive and rolling.