Financial management tips for women prepared for retirement will be based on investment strategies that women undertake
As another year draws to a close and the beginning of a new year gets closer, it is but natural to get pulled into a vortex of ruminations on the happenings of the year gone by and paves the way for the yearly resolution-building ritual. In the realm of money management too, reflections on the hits and misses of the year passing by can serve as valuable lessons in the long run. Financial management tips for women is a necessary part of their everyday life. Unfortunately, most women naively stay clear of all financial planning.
However, here are some pertinent reasons why should they get involved in monetary financial management tips for women :
The power of good old budgeting:
The conviction that new year resolutions only work when they are based on a lesson that you learned from an experience. A resolution that does not have its roots in an episode where you have had to face some difficulties is harder to stick to. But as the saying goes, the smarter thing to do is to learn from the mistakes of others and that is what I plan to do next year.
Financial management tips for women consultants make it clear when it comes to the resolution-making exercise. The sole focus will be on sticking to their budget religiously and meeting their investment target every month. It’s not that they’re starting their savings and investment journey now they have been doing that for a while. But staying disciplined has been a challenge for them. On many occasions women find one part of themself trying to school the other impulsive part that is more intent on giving in to temptations.
A solid budget is the first stepping stone to healthy finances. It is only when you can adhere to a budget, set aside a body of savings that you can channel it towards investments to meet your goals.
Breaking away from stereotypes:
Too many women have been kept away from the gamut of financial management tips for women’s inclusivity for too long and it is hardly surprising that women find it hard to feel confident about their decisions even if they attain a certain degree of financial knowhow. 31-year-old Sushmita Nagpal has resolved to let go of patriarchal tropes in the coming year and becomes confident enough to take all financial decisions by herself without having to seek support from her husband.
Since the day they have been married, her husband has been taking care of all the money that she earn and the assets that she has had because she would relegate these duties to him. Somehow, societal conditioning made her feel that her money would be more secure in his hands.
However, of late he has started nudging her to take an interest in the finances because he knows it is a life skill and she shouldn’t be dependent on him. While she has learned a lot in the last two years, she lacks confidence and still has the urge to seek his approval. Unlearning the notion that matters of the wallet are best handled by men will be focused in the coming year.
The mantra of goal-based investing:
Investments cannot be a one-size-fits-all formula – the path to a successful investing journey is to keep your investments aligned with your goals. Many people make the mistake of choosing investments based solely on the returns without factoring in the suitability of the asset class for their needs. Add the prevalence of low financial literacy to the mix and that is enough for many people to set them on a path of financial losses.
With goal-based investing, you can assign values to your goals and this can pave the way for your financial management tips for women resources to be utilized in an efficient and optimum manner.
Retirement: Ignorance is not bliss:
Retirement planning is one of the major chapters of your financial journey. It is one of those goals that will have a significant impact on the later part of your life. Your financial preparedness for retirement will be based on the investment strategies that you undertake right from your 20s and 30s.
The fact that retirement is a long-term goal can make many people get complacent with their retirement investment game. For women, who may be used to the male members of the family handling the reins of the finances, retirement planning can get relegated to the backseat completely.
Choosing the right asset classes:
There is a sizable chunk of investors in India who shy away from asset classes that carry an element of risk. Gold, real estate, and traditional investment instruments such as fixed deposits, post office savings schemes continue to find resonance with many and this is especially true in the case of people who have recently gotten into the habit of saving and investing.
However, playing it ultra-safe and investing without giving much thought to whether the investment can generate enough returns for a specific goal can be harmful in the long run.