I start off this section, Women of substance, with this subject of personal finance, which I believe every woman should know, be it a SAHM, a career woman or a homemaker.
How many of you reading this article, have an insurance policy, solely on your names?
How many of you know the different policies held by the family?
Do you have a joint bank account with your husband?
Do you know about the different LIC policies or educational policies taken for your children?
If the answer to all the above questions is a NO, it is high time you understand what finances are all about, including the different investment options.
While I agree that in India, most of the finance decisions are taken by the man of the house, it is high time that women step into this zone, understand things and be more confident about matters of finance.
At one end of the spectrum, we see banks being headed by women, while at the other end; there are women, who still depend on their husbands for any decision relating to money matters.
The basics of money
It is really important for women to understand the basics of money matters. It is more related to the financial well-being. Dependence on others only makes things worse. Human beings are not eternal. Loss of a person should not throw your life out of gear.
Educate yourself about finances. Know the income-saving-expenditure cycle.
Empower yourself to be financially literate and secure your future.
Save for your old age/retirement years.
Women live longer than men
Did you know that women live longer than men?
Considering this fact at least, women should realize the important of financial literacy and financial planning for the future.
Women should be and can be smart about finances
Get to know how to save smartly and invest wisely. Be selfish and invest yourself and for your future. Do not be risk averse. Take calculated risks. You are your financial safety net – not your husband or children.
A few vital things:
- Know the operations of a bank.
- Have a joint account with your husband. (you will have easy access to your money)
- Get yourself nominated for all bank accounts that are in your husband’s name.
- Be net savvy.
- If you do not know mobile banking, it is time to learn the basics of online transfer of money and such things.
- Learn to operate ATMs, debit cards, credit cards.
- Try and understand the various investment policies, their maturity dates, nominations etc.