10 Financial planning tips for women

  • Financial planning is a  process which helps you to create structured and sensible decisions to help manage your finances better and achieve finance and life goals by proper management of your finances, you can read my post on financial planning for beginners  to understand this in detail.

    Financial planning is for every individual but sadly times our experience has been women spent much less time and energy on financial planning, while women naturally are better than men at planning and managing but when it comes to financial planning either they are not aware, not interested or reluctant, while general principles of financial planning remain the same for every one , women definitely face unique challenges which makes financial planning for women a different challenge.

    Before we go to tips that will help you create a better financial plan as  a women, here are some reasons why you need one.

    Live More.. Plan more :
    Women in general outlive men by almost 5 years though this gap is reducing now , which means there is a distinct probability that you would have to take care of your money  some time on your own even if you are married, so its important you start early

    Higher Divorce Rates:  
    Divorce rates are steadily increasing in India, which means every 2 in 10 marriages face some kind of martial discord, as a result it is important to ensure financial independence if and when such circumstances arise, a proper financial planning will help avoid any kind of financial distress and create financial safety net for you and your children

    Women earn less for the same job :
    There is enough data to show that on an average women earn less then men for the same job. Global research points out a wage gap of 15-20 %  between women and men wages, well how that gap gets reduced is a bigger question but it means women need to manage their money much better and hence need for better financial planning.

    Women can manage everything better including money.
    There is enough research which says women are better manager then men, they are able to mutitask better and also have long term view of things all these thinks are great skills you want to have to do good financial planning.

    So  ladies are you convinced that women have special needs for financial planning and they should invest time and energy to create the same, if not you can call us or drop a comment on the post and we can explain you  further, if yes please go ahead and read my tips on how to create a financial plan.  I am sure at the end of this you will be closer to creating a good financial plan and financial future for yourself and your family

    • Finance planning is for everyone,take control of your finances
    • Consolidate and review your accounts so that you can start the financial planning process
    • Create a snapshot of your financial picture, which means summary of your income and expenses (which basically tell how much money comes and how much goes), keep it detailed so that you do not miss anything, you can use any simple budgeting tool or use the excel below for the same.
    • Next step is to create an emergency fund , this help you to have enough money for a bad day like job loss or unforeseen financial obligations for more details read my post on guide to create an emergency fund
    • Lets talk money honey.. If you are married start a conversation with you husband on financial planning it will always be better you go in sync and align your individual and joint goals so that you have a consistent plan for the family.
    • Get Insured adequately, that's the most important  step in your financial plan, you require both life insurance and health insurance check if you have the adequate cover, check the cover your employee provides, and see if it is adequate in general you anyways require independent health cover because you will not have employee insurance cover for ever, remember what we said at the top women live longer than men hence you will require health cover for longer period invest today invest wisely
    • Start working towards a retirement plan now , you need to start planning for your retirement right now, if you are married talk to your husband so that you can together create the plan again retirement planning if done early helps you save much higher and you need to think about the fact that retirement can be a lonely phase if you live longer than your husband and hence your financial obligations might increase
    • Hire a good financial planner or use a online service for financial planning
    • Dont shy away from investing in equity or equity based mutual funds if your investment horizons are long term, equity returns over long period generally outperform most other assets.

  • Financial planning in the early age of a career can be really beneficial for the person, weather it is a men or women. The tips mentioned here could be useful for ladies who are career conscious and want to maintain their financial health. For the ultra high income one can consult financial planners too.

  • It is sad to see in this era that women don't get the same amount of respect as men. You can clearly in see in every field of life. Women work the same as man and they don't get paid equally. We all should stand for their rights. This could impact every one even our own families.

  • Nice information. I too believe that women can manage money well. A homemaker or a working woman, all should think about financial planning. Women should not ignore this important aspect of their life. Planning finances ahould be a topmost priority to lead a better and secured life ahead.

  • @sdadwal Yes, financial planning is really important for women in India. This part is mostly ignored or delayed. We should start planning for our retirement at young age. Small savings plus investments done today can help accumulate good amount to secure our future. So, ladies out there, you have performed extremely well in various fields. Don't ignore this crucial part of your life called financial planning 🙂


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