STEREOTYPES are not an uncommon phenomenon in our Indian society. One of the most common ones we hear is how women do not know how to manage their money.
Yet, we forget that our ancestors had often regarded women as `Laxmi' the goddess of wealth. And even today, it's not that women do not know the basic of financial planning ask any housewife how she manages to run a household with limited money, and you will get a coy smile in return. The only major difference is that women do not take charge of the family financial plan and leave it to the man of the house.
Hence, the question that arises here is why should women also focus on finances? Here's why: It's better to be prepared: It's a sad fact but true that most women do not know how to balance a chequebook. They often go about in life thinking that their husbands or the male members of their family will take care of them. However, god forbid, if something unfortunate happens to these members, women are often found to be left in lurch.
This is mainly because not only her family's current inflow of income has stopped but so has all her future finances that would satisfy her goals and desires.
To avoid such situations, it becomes more than imperative to not only understand the most basic financials of the family but also to find a way to continue the same, so that your future goals are not under threat.
Avoiding the debt trap: Focusing on finance personally gives women an in-depth idea of how to avoid the debt trap, as they are responsible for their own money and paying off their own credit card bills.
A client of mine wanted his wife to understand the importance of managing her money. While she used to have a substantial earning, she would inevitably end up borrowing money from him to pay her credit card bills. We created a small project for her, where every time she swiped her credit card and borrowed money from her husband, she would not only have to repay him in a specific time but also pay him interest on those borrowings. This helped her not only to curb her splurges but also helped her in avoiding the debt trap.
Investments lead to fulfillment of goals: Women often think that investments are for men who handle money. This is an urban legend. Some of the best investments that I have handled are for my women client base. Focusing on your finances through proper investment channels can not only help you to fulfill your dreams and goals on time, but also help you to create a savings pool that will help you in the future. A financial planner can help you not only find a good investment plan but also help explain the jargon that women find difficult to comprehend.
Financial independence: Financial independence is not an easy thing to achieve, especially for women. Even when employed, they are dependent on their husbands or fathers for financial support. Focusing on the smallest financial need can help achieve that.
If you have trouble in achieving that, a financial planner can help you to under stand the key areas you need to concentrate on and how you can curb on the unnecessary spending.
Woman today have begun assume more active roles as compared to their mothers. Why then should they not be active when it comes to their finances? When a housewife can manage to run her house on a tight budget, and still do everything, then why should she or anyone else question her ability to manage the family's financial plan?
Financial planning is not a destination; it's a journey for which every member of the house has to be participant to make it work.
Women are a strong force that can pave a way for a better future. With a little bit of help and insight, they can be on their way to be great money managers.
