There is no denying that money represents power and control. But more often women shy away from taking charge of their financial fitness. Taking charge of money and having a say in how their money should be utilized does not come easily to them, perhaps they are too emotional about discussing money matters? It is important for women to not shy away from discussing how to utilize the money they have earned. The sooner they start talking charge of money the better it is for their financial health. Small steps early in life can assure a secured future.
These are ten ways in which women can overcome the stumbling blocks that stop them from becoming financially independent.
- Take Charge: Don’t rely on someone else in the family, like your father, husband or boyfriend, for your financial security. Educate yourself about financial planning and investments. Read financial magazines, journals or blogs which keep you up to date about the jargon and make you confident.
- Think before spending your money: Do your homework before making big purchases. Control your urge to buy on an impulse. The high you get is fleeting. Instead, invest in things which you can be proud of. Invest in experiences.
- Have rules of spending: Save a portion of your earning always. It helps you build an emergency fund for a rainy day. Have contingency plans for job loss or medical emergencies.
- Stay actively involved in money matters at home: Be involved in the day-to-day financial decisions and talk about money with your spouse and other family members. Make sure your opinion is taken into consideration. Talk to your partner regularly to understand the financial strengths and challenges you have as a couple.
- Have a financial councillor: It will help you overcome the fear of losing money. Having an independent financial consultant lets you get over the fear of failure that stops you from taking risks with your investments. A consultant can help you understand savings, budget, insurance, and tax strategies better and help your money grow.
- Take Care of Your Money: Keep a tab on your investments and spending. Be mindful before lending money to friends and family. It may never come back.
- Have a Money Buddy: Friends with similar traits can help you hone your skills. A money buddy gives you informed advice on money and investment. So have friends who make talking about money matters fashionable.
- Set Goals: Have long and short-term goals about what you want to do with the money you earn.
- Plan for the End: Every time you get a raise, raise your retirement savings, too. Saving money for old age is crucial.
- Learn from your money mistakes. Everybody makes mistakes, but learn from your past mistakes and stay away from bad money habits such as borrowing money, overusing credit cards, not budgeting, spending more than you are earning.
Article in partnership with AMFI. Mutual Fund investments are subject to market risk. Read all scheme related documents carefully.