Rishabh Parakh | Saturday, 21 November 2015 – 10:00am IST | DNA india
It is important for women to start financial planning early on; it is also important to make these decisions wisely and not emotionally.
These days, financial education is imperative to acquire financial success. However, while some of us might be well-versed with financial theories, staying updated and accurate with the latest financial news is also important.
There are women who go the extra mile to provide for their family, both financially and emotionally — as a professional, mother, daughter wife, friend. However, women also tend to get fondled by emotions easily. It is important for her to focus and make decisions logically and not emotionally when it comes to matters of financial planning.
Here are some smart financial planning tips for women
Choosing best option to invest:
It is not only important to invest, but also to choose your investment plans wisely. This stands true for everyone, not only women, but it is especially important in the case of women because they tend to have a longer life span. It is very important to start planning for retirement or for financial stability in the event of a partner’s death.
Take charge and make a budget:
Many women in India still depend on their husbands for financial decisions. With growing complexities in life, it is advisible for a woman to take charge of her financial life as she may be in a better position to predict her needs going ahead. For this, make a budget that fits your requirement with ease and is flexible enough to accommodate needs with time. It is advisible to start as early as possible and select investment options which will also help you save in taxes.
Research & Plan: Take a financial advisor’s help if needed:
Since the financial world is full of technical jargons and complexities, a thorough research before buying into a financial product, including considering factors like inflation, return on investments, market sentiments, and taxes while planning your finances. Seek advice from an expert if needed, but eventually make the final decision on the basis of your judgement and thorough research. Plan, calculate and research before investing.
Review your income & savings on a regular basis:
After carefully planning and investing, the next, and constant, step is to review your finances on a regular basis. You need to be on the top of your game when it comes to managing finances with respect to the changes in your life — marriage, becoming a parent, career changes, moving abroad/shift, and so on. Then there are other changes that are beyond one’s control — changes in tax laws, interest rates, inflation rates, stock market volatility, recession — so make sure you plan ahead of time and are always ready to accommodate these changes.
Rishabh Parakh is a Chartered Accountant and the Chief Gardener & Founder Director of Money Plant Consulting, a leading Tax & Investment Planning Advisory Service Provider. He also runs a personal finance blog called “Mango Investor” aka AAM Niveshak at http://www.mangoinvestor.com. Readers are invited to send their feedback to firstname.lastname@example.org.