WOMEN SPECIAL... WOMEN SHOULD LEARN ABOUT SAVINGS, INVESTMENT AND FINANCIAL PLANNING

WOMEN SHOULD LEARN ABOUT SAVINGS, INVESTMENT AND FINANCIAL PLANNING

They should learn the basics first and then go on to take investing decisions

When it comes to financial planning for women, the basics remain the same for both, women and men. However, the approach differs when one considers the fact that the habit of savings is ingrained in women much more than men. Also women have higher life expectancy and a relatively less knowledge of finance and investment.

— This article has been exclusively created for UTI SWATANTRA

THE BASICS OF FINANCIAL PLANNING:

Set your goals

Fix the timelines

Look at your cash flows

Decide how much you can save and invest

Create an emergency fund

Have life and health insurance plans

Write a will

SOME REASONS WOMEN SHOULD LEARN ABOUT INVESTING:

In India, on an average, women live about a couple of years more than men. So in the later part of their lives, most women live alone for a few more years. Since they're relatively less knowledgeable about finance and investing, they face problems. So it's important that women start learning about investing and participate in the family's financial planning process.

Women are natural savers, yet they don't invest properly. Another reason, they need to learn to invest so that they can, on their own, create wealth in the long run.

An increasing number of women are becoming single mothers who at times face financial difficulties. To address such issues, women should start learning about finance and investment.

There are instances where after the sudden death of the husband, the lady hardly has any idea about where and how her husband had invested when he was alive. To avoid such situations, women should insist on being part of the financial planning process for the family from the start.

FINANCIAL PLANNING: A CHALLENGE OR ADVANTAGE FOR WOMEN

Monica Rani Bansal

In today's scenario, mutual fund investments have become the most useful tool to gain an advantage of higher returns. Investing is not a one day activity; it is a continuous process which can be achieved through financial planning.

Women plays a major role in financial planning; towards creating a plan depending on the goals desired to be achieved. In simpler words, it is the estimation of your financial position in near future. You may come across number of challenges while estimating this financial position. The challenges might be in deciding how much to spend, save for the rainy day and where to invest all savings.

Some easy steps can be taken to overcome these challenges. First, decide what for and how much you want to save. Second, know your risk capacity

(i.e. loss you can bear). Third, invest for shortterm or for long-term goals and fourth, start saving in the different instruments available in the market.

Short-term planning may come in handy but what about your longterm plans to invest in? In order to achieve the longterm goals, go for the long-term plans available in the market such as retirement plans, children education plan and invest in it through systematic investment plans (SIP). One may prefer balanced advantage fund which provide you a normal return in bullish or bearish market.

If you are a working woman, you can also prefer for the tax planning along with financial planning; here investing in ELSS scheme will suit you best. To conclude, start investment planning and take the first steps towards achieving your goals.

— The author is an IFA

This article has been exclusively created for UTI SWATANTRA