As women, personal finance often fails to make it to the priority list. It’s challenging for any woman to be on the ball in this respect when one is already juggling personal, professional, and social commitments. But do women really have a choice when it comes to financial literacy? A Fidelity study shows that 90% of women will be solely responsible for handling their finances at some point in their life. Wouldn’t you rather enter this seemingly complex world of personal finance on your own accord rather than being thrust into it? 

Here are a few financial planning tips for women that could assist in putting financial affairs in order: 

 

Manage Expenses 

Benjamin Franklin once said, “Beware of little expenses, a small leak will sink a great ship.” The most effective financial planning tip for women would be to get a grip on their expenses. When there are few financial commitments and responsibilities, even luxury appears affordable. But, it’s not a question of whether you can afford something today. In fact, this is more about looking at the larger picture and ensuring that you are not compromising in any way on the life that you want to lead.  

Developing a healthy relationship with money could bring overall satisfaction, ensure that you are never saddled by debt, and secure your future. Learning to draw up a budget and inculcating the discipline to follow it are the first steps in your wealth creation journey.

Know Your Risks 

When it comes to money, the risks of investing your money are clear – you may be forced to realize a loss, or your expectations may not be met. But do you know what risks your subjecting your money and your goals to when you let it lie in the safety of a bank account? Firstly, when money is allowed to idle it doesn’t work as hard as you do. The corollary of your money not working hard is that you need to work harder and save more aggressively. Are you sure that you want to sign up for that? 

More importantly, inflation is steadily eroding the value of your savings. It’s your financial responsibility to preserve the value of your hard-earned savings. 

Many women don’t know the value of their own lives. Regardless of whether you are contributing equally to the family kitty, your income supports your family’s expenses and aspirations. The biggest risk to your family’s financial security is that either you or your partner are underinsured. 

Another key financial planning tip would be to understand financial risks and imagine how they could manifest. We’d all much rather be safe than sorry, and the rewards far outweigh the risks. 

Life Goals 

All of us have aspirations and financial planning is actually a tool that can prepare you for life events. If you were to quit your job today, how long would your savings sustain you? If you wanted to start your own business how much capital would you need and where would you source it from? Are you sure that it’s the right time settle into a home of your own? Do you fully understand the ripple effect of taking on a home loan in the early stages of your career? As a mother are you confident that your children are provided for financially?

Whether you are thinking about a career change, settling down, or starting a family – your decision has financial consequences. 

While not everything is a financial decision, turning a blind eye to the financial aspects is not the solution. Going with the flow is one strategy, but wouldn’t you rather be directing your life? 

 

Hire A Financial Advisor 

The world of personal finance seems labyrinthine – it’s filled with jargon, unfamiliar ideas, and too many variables. Good news morphs into bad in the blink of an eye, and investors have no idea what to expect. Some of us may have burnt our fingers with financial decisions in the past, leaving such a bitter taste that it doesn’t seem worth the effort anymore.  

Feeling overwhelmed or demotivated by these experiences is only natural. If you don’t have the time or inclination to take charge, instead of allowing your financial affairs to take a back seat hire a financial advisor who has your interests at heart.

This will ensure that a qualified competent professional is giving your money the time and attention it needs. Soliciting professional guidance and financial advice could do wonders for your aspirations. It will also reduce the amount of mind space financial decision making takes up.  

Zeroing in on an advisor is easier than you would expect. You need to look out for someone who is professional, empathetic, affordable, and competent. Your advisor should be able to create an environment of trust, display a sound work ethic, and come with a solid track record. Viewing an advisor’s digital presence could provide insights into their style and approach in guiding investors. We never hesitate to take financial advice from friends or family, so why not rely on a referral when in doubt? 

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