Financial Planning is a virtuous and systematic way of making money act smartly for you. It defines to be an all-inclusive assessment of a person's current pay and future financial situation. This equation is based on the current known variables which tend to predict future income, asset values, and withdrawal plans. While this could be one of the smartest ways to approach money and its utilization in an individual’s life, not many women take pride in making it work for them.
About 60% of women who are working and financially independent do not take financial decisions for themselves. The concept of being financially free is still not coherent in their case. Most women, especially married ones, are ready to sacrifice for their household and their children. They keep saving for rainy days and the future of their kids. Also, they depend on their spouses to taking most of the financial decisions. However, it is an issue worthy to be addressed and overcome. Women need to take financial decisions for the betterment and growth of their business ideas as well.
I am a firm believer in the power of setting financial goals to achieve successful outcomes. You simply need to work tirelessly towards those goals by developing, implementing, and tracking your plans regularly. Women, who are earning, are self-reliable, plus, having the will to initiate an enterprise or a start-up, must know how to engage in financial planning.
So, to begin planning your finances, you must take the following steps and ensure your growth through the same:
Educate Yourself Regarding Financial Freedom
There is indeed no education as good as self-education. It provides you with the total scope of taking the lead and being responsible as well as accountable for whatever decisions you take or the decisions you make. Talking of finances, you must keep in mind that financial freedom can only come to you by educating yourself about how to deal with money in the wisest manner possible. Seek all sources that teach you how to do that. It could be through digital ways of learning or even by reading finance-related books. So go ahead! Seek your path to be financially literate.
Avoid the Unnecessary Hassle
People often find themselves struggling at a bigger scale from the resources that at first seemed to appear flexible and comforting. And one such source is, Credit Cards! I do not say that making use of Credit Cards is bad or will leave you in a deep dark trench. But, yes, when you’re not completely confident if you could stand it or are partially or negligibly educated about their use, do not seek them. Try avoiding High-Interest Credit Cards as they often become a liability for an individual. If it goes unattended for a long time, you would not even realize the terror till you realize how much of a huge problem it has become.
Why not Switch to the Traditional Ways of Saving?
You would probably ask, “traditional” ways of saving, what are those? Well, these are those obsolete ways of saving where the process seemed a bit more relaxed and brought fruits that helped in a more stress-free saving. For instance, buying gold, making investments in FDs, or giving a nod to the “pot” committee money. You may resume these old methods of saving so that the purpose is fulfilled as well as there is less liability to hold on to.
An Untouched Savings Account
Try to set up at least one savings account for yourself in which you only deposit money and do not touch it for regular or monthly expenses. You must have a specific amount of money to save every month in this account. The other regular expenses must not be dealt with through the money you deposit here. Do not forget to keep a record of how much you saved here every month. You can save this money for testing days in the future or even when you need to make a large investment in times to come.
Do it Bit-by-Bit Every Month
Now one of the most basic and essential parts of financial planning is tackling the monthly expenses and systematizing them. If you invest or save money regularly, make sure to allocate your budget by planning your expenses each month. By allocation of budget, I mean the amount of money you spend or invest in a particular sect of your whole share of expenses regularly. This may include monthly ration, your child’s school fee, installment of anything you might have purchased in the past, etc.
After mentioning all the points above, I’d remark that do not be worried if things go south. Stay optimistic rather than going into anxiety mode. Also, decide smartly about every move you make next. Be patient! Know that things take time. But once they are on the track, they’ll function smoothly.
