7 Smart Financial Planning Tips For Women
06 March, 2023
With more women earners in the country and better access to financial products and services, it makes sense for women to learn about financial planning as well. Financial planning is a critical skill and can make all the difference between long-term success and failure.
Here are some tips that can help you accomplish a more secure financial future:
Allocate a budget
Based on your monthly/annual income, draw up a personalized budget based on your goals and the time frames within which you want to achieve them. A good way to start is by following the 50-30-20 rule. On receiving your paycheck every month, allocate 50% to sustenance expenses, 30% to savings and investments, and the final 20% to living life queen-size.
Take charge of fixed expenses
As the term suggests, your fixed expenses aren’t likely to change anytime soon. These include rent/EMI, insurance, etc. Prioritize expenses based on their importance and set a limit in stone. Fixed expenses will eat into the bulk of the funds you allocate for expenses. Prepaying a loan or moving to a relatively cheaper house can help you limit your fixed expenses.
Restrict variable expenses
From the unavoidable travel, phone, and internet services to an impulse shopping spree or a night out with your friends, failing to track variable expenses could lead you into a financial abyss. You do not have to miss out on all the fun, but if you have long-term goals such as buying a house or starting your own business, you must consider being more judicious with your money.
Put technology to use
Today there are many budgeting apps that keep you on point, apps that help you dial down on debt, apps that bring all your investments in place, even apps that invest the spare change left over from your shopping expeditions. Since almost everyone today has access to a smartphone, using technology can be extremely beneficial.
Jut saving money isn’t enough. You need to make smart investment choices as well. Your investment portfolio must not only beat inflation but also generate enough wealth to allow you to be financially free as early as possible.
With HDFC Bank’s comprehensive banking and investment ‘Savings Max’ account, you can choose the best investment option based on your risk profile. With just a click of a button, you can create a Systematic Investment Plan (SIP).
The ‘Money Maximizer Facility’, allows you to then convert an extra money in the account into a Fixed Deposit, where you can get the best of both world’s - a Savings Account’s liquidity and a Fixed Deposit’s higher interest rate, through the sweep out feature. In the event your Savings Account runs low on funds, the shortfall can be addressed through the sweep-in of funds from Fixed Deposits booked through sweep-out. You also get free ATM transactions, cashback, exclusive loan offers, and insurance benefits.
Plan your tax outgo
Ensure that you maximise benefits from all investment and tax-saving options available to you. From Public Provident Fund to Equity Linked Savings Scheme, there’s a product for everyone. If you are already a home owner, you can claim additional deductions.
If you are an entrepreneur, remember to save all your meal, travel, and accommodation bills, which you can claim as expenses and reduce your tax liability.
Plan for the long-term
It is no longer enough for you to think just about the next few months or years. Your investments need to be thought of in such a way that when you should choose to retire, you are able to live comfortably. With access to a Demat Account, you can take control of your own future.
Once you have all these aspects of financial planning covered, you are on your way to being successful. With HDFC Bank, you can even take your financial plan and execute it with ease. From investing in secure Fixed Deposits, to spending wisely with a wide range of Credit Cards, the future can crafted in a way that suits you.
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*Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.