Let’s be honest enough to accept that Indian women are still learning to manage their finances efficiently & indecently. They are still found to lean on men to consult their financial decisions & action plans. Whether it’s your father, brother, or husband, there’s a certain level of dependency seen. This is also substantiated by the age-old traditions of how men take charge of financials in the house.
Its high time that women realize their ownership as equals & take responsible decisions in the context of overall financial management.
Here are the basic mistakes they must ideally avoid. Let’s quickly go through them:
1. Being too conservative
A study reveals how women back the theory of conservative spending. While others share a contradictory view that women have a better long-term financial perspective. Though, being too conservative can leave your savings in cash, hurting your future returns.
2. Splurging
Women are typically carried away by emotions to swipe their credit cards & clam they are inner fierce. However, it never feels contained using up a credit card & the financial strength feels missing. There always is a disparity of emotional & financial potential. And the emotional quotient always seems to stay up compared to the financial strength, when both must be kept equal.
3. Not Maintaining Liquidity
Along with an early start, you should have the provision for retirement funds. It’s extremely important to start early in life when it comes to saving money. When you’re already into a steady job, monthly savings should come handy. Set up a liquidity margin to save more & spend less to take care of the unplanned expenses.
4. Topolling over attractive offers
It’s a general observance of how women fall for attractive offers available online or in stores. You must try to avoid unnecessarily expensive items, including credit cards & insurance plans. Analyze the outcome if you need money for medical emergencies.
5. Replace‘saving’ by ‘investing’
Saving & investment are often used interchangeably. Saving must be ensured to keep the liquidity quotient high, however, investments are important for consistent returns on the same cash. Don’t forget to put your surplus to use by generating income on it like Fixed Deposits, Mutual Funds, or PPF. No matter how much you can possibly invest, just begin with a financial goal whether it’s a retirement pool, a child’s higher studies, wedding preparations, etc.
6. Relying on partners financial acumen
Despite the gender equality campaigns running in our country, women in India are not completely financially independent. This is specifically true because women rely on their men counterparts too much. This way they don’t ever learn the art of handling finances/ investments. A few women also part with their hard-earned salaries. They must consciously get themselves involved in the family finances, assets & investments.
7. Delay Spending
With quicker availability of credit, it’s easier to build savings & spend credit. However, it’s a totally stupid idea to spend endlessly on items that can be purchased today and be paid later. Introspect if you actually need the item, in an emergency or out of serious fancies. Think about it properly and then make a decision.