Give thought to a stable financial kitty
Working women should be balanced financially and should do so early, so as to keep a sizeable financial cushion, in case of a contingency. Ideally, they should have life insurance, medical insurance and systematic investment plans.
OFTEN IN this cosmopolitan life, women, who are conventionally appreciated for saving money go on extravagantly splurging it, without checking their limits. What has happened to these money managers?
Sameera, in her mid 20s, is a well-educated woman, who has been working in Mumbai for quite a long time. By God’s grace, she managed to start earning handsomely after a few years of work, making her more independent and giving her an established identity. Her lifestyle became more and more high-end, with her changing phones from Nokia GSM to Blackberry, going on extravagant on shopping trips et al – without giving much thought to Personal Finance.
Let us understand Sameera’s financial position and read through lifestyle closely to understand why it is a problem. She currently holds a credit card which has significant pending payments, due to her splurging habits. She is still unaware of the various nuisances and hidden charges on her credit cards. So, as the card payments rise every month, she is frazzled to see the expenses rising – all because she did not read the fine print and overspent on the credit cards.
Her medical insurance payments are high and further unbalance her financial kitty. However, the plan, which was taken out by her company, is not a good one, making her practically under-insured. This is not a rare occurrence and has happened with many, many others, who now have no financial plans for a better future.
Working women should have balanced financial positions and should decide about it a little early, so as to keep a sizeable financial cushion, in case of a contingency. They should particularly look at the following:
- They should have enough life insurance in terms of Pure Protection schemes. Should any unfortunate things happen in future, their nominee would get the entire assured sum. It works well when the women are married and are burdened by home loan debts, children’s education expenses and other major expenses. If they take insurance early, it would also cost them less.
- They should have a medical insurance policy at an early stage, when the insurance seeker is not suffering from any ailment. This is important because as one ages, there is likelihood of developing ailments which can be fatal too. Moreover, women are more prone to health care services due to their inherent conditions.
- They should have systematic investments products at an early age so as to get a compounding effect on their returns.
- They should avoid splurging and keep checks on their expenses. In case they use credit cards often, they must pay the bill in time, or the increasing interests and dues would create a debt trap.
Smart work, smart thinking, multi-environment adaptability and loyalty to the company are some of the flying colour words which define today’s women but when it comes to their own money management skills, they score very low and mess their financial conditions. They must follow a disciplined approach towards their personal savings and check their expenses.
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