Financial habits women must adopt.
Being financially independent and stable is important for everyone, especially women. One needs to be disciplined and follow certain golden rules to achieve financial independence in long run. Here are some best financial habits that any woman can develop going forward.
Save money on a regular basis
Many women end up spending all they earn on monthly basis. This may bring them and their family temporary happiness, but it’s important to follow a saving regime on monthly basis. This includes setting aside part of your monthly earnings and then planning the expenditure from the remaining earnings. We all have learned that the future is unpredictable and you need savings to get you through a rough patch if it arrives.
Avoid impulse shopping
Companies have always been designing sales and campaigns to allure women into spending money impulsively. You may get excited after seeing a new online sale and end up buying a lot more than you actually need. While this may provide a short-lived gratification, you very soon realize that all of this denting your bank balance. In the age of social media and hyper marketing, you need to be wise and buy only when you need.
Be cautious of the credit card trap
People often don’t realize that using a credit card means taking a temporary loan and if you don’t pay the entire due amount on monthly basis, you end up paying substantial interest. Alternatively, you should limit your credit card usage and use a debit card as that reflects the real saving you have. By doing so, you will be more rationale while swiping a card.
Merely saving money and keeping it in the savings account will not make your money grow. You need to wisely decide on your financial goal and invest accordingly in instruments such as mutual funds, stocks, SIPs, PPF, gold, or an insurance policy. You need to understand your risk appetite and pick a combination of such investment instruments to see your money grow constantly.
Start retirement planning sooner
When we think of your future and evaluate financial planning, life after retirement is often overlooked. What we need to understand is that our ability to work and chances of employability decline as we age, so we need to plan for a good retirement sooner than later.
Lastly, don’t procrastinate
Atleast start saving say, 15% of your salary from this month. Thinking about financial stability is only the start, it is achieved when you don’t pend and start now. Make savings a part of the financial regime and evaluate it often, not annually.