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Photo: M. Vedhan

Change in lifestyle Financial tools are essential to keep pace

We all unanimously wish to hit a jackpot and live off the money and never work again. Since the chances of that happening are slim, what we can do is write down our financial goals for the rest of our lives. Divide them into short, medium and long-term targets before implementing them.

Women have never had it so good in the past. They have whizzed past their ancestral ghettos, taken the happening call centres by storm and breezed into the power corridors of corporate sector. Yet, when it comes to financial management, women continue to be underdogs though they have managed household finances for centuries. Active lifestyle today demands a variety of ‘easy-to-use’ financial tools that are flexible and available when and where they want them.

While living in the fast lane, everything can be bought with the swipe of a card and you often lose track of how much you really spend. Avoid using credit card as much as possible. Don’t be an impulse buyer because then you tend to over-spend. Be realistic. Keep a detailed account of your expenses.

“I make it a point to use cash for buying as it allows me to control the expenditure. The spending becomes ‘visible’ and alerts you where to stop,” says a thrifty Vidya, who shatters popular misconception that women tend to waste money.

“Saving is essential because no matter how much you make, if you are blowing up all the money, you are setting yourself up for disaster,” counsels Ruchi, a self-declared financial consultant who volunteers to rescue squanderers.

Financial independence opens new vistas for women, as it enables them to make choices and security is the biggest advantage of financial freedom. Life has no guarantees. So, never make the mistake of thinking that something bad cannot happen to you. Simply making money is not enough. Knowing how to manage is more important. Money, if saved and invested wisely, has the potential to grow. Most women have no clue as to where to invest their savings.

Not all of them would need the services of a certified financial planner to access their net worth and do some sound financial planning. They can build an emergency ‘rainy day’ fund by setting aside money every month until they have accumulated savings equal to at least four months of living expenses. Money should be rotated in a way that one can get the cash in hands whenever it is needed.

Budgeting and sticking to it, at least as far as savings are concerned will go a long way in ensuring a healthy bank balance. It will also help you see the little holes through which money flows out.

There is another side to it. The good news is women tend to outlive men. The bad news is because women live longer, their retirement plans will be more expensive as they need to plan for a longer period.

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