Homemaker – The Best Financial Planner
A job of being a homemaker is not as easy as it seems to be. As a mother, wife, daughter, daughter-in-law, cook, maid, alarm clock, teacher, nanny, nurse, counselor, comforter, you name the role and SHE plays her part to perfection. No medical leaves or half days or holidays – 24/7-365 days on duty. And SHE is the best financial planner of the house. Though not a breadwinner of the family, during times of no cash flow in the house, her savings from the containers in the kitchen comes to the family’s rescue.
Having your small savings put in your kitchen containers or in FD wouldn’t help you put the money to right use. With FD you get a return of 4% p.a. while inflation is around 6%, is this investment really helping your money grow? The answer is a clear NO. Don’t just be a Saver become an Investor.
Planning at different stages of life
As a homemaker when you can multitask to perfection why fear to invest your savings in the right avenues? At different stages in life, demands, and needs of the family changes, why not plan your savings to address them.
In your 20s, as you are still figuring out your role as a daughter, wife, and daughter-in-law, make the best use of your age, spend wisely and save as much as you can. As this is the right age to take the risk and invest for longer durations.
In your 30s, you would be a playing a first-time parent role and would want to give only the best to your child, so why not invest a part of your saving toward your child’s future, in addition to your spouse’s savings. For all, you know this saving would just add up to a better career for your child. Your savings should also be diverted towards your retirement and health. Ensure, right Life Insurance Cover has been taken for the family. This would help the family-run in case of any unforeseen circumstances.
In your 40s, boost your child’s fund and invest towards your personal needs. Buy a gold ornament for yourself or go on a vacation with your family or girlfriends. Amidst your busy schedule with family, I’m sure some self-pampering is needed to relax your stress. Let your savings pay for your pleasures.
In your 50s, with responsibilities increasing, its time to focus on your child’s marriage, health, and retirement. Have a proper plan and withdraw your investments at least 1 year prior to the need. This way you wouldn’t have to struggle for funds in the end.
In your 60s, do not take any risky steps with your investments. Be as conservative as possible. Zero tolerance for losing money. Therefore, savings during this period should help you deal with your old age expenses.
Plan Your Finances
In order to meet various commitments at different times, you need to plan your finances well in advance and with utmost care. Let us help you do it just in the right way possible:
- Money Management – Discuss your family’s financial planning with your husband. Understand the liabilities such as loans, bills, and rent that goes out as expense every month and budget them well. This way it helps both of you to educate each other how best to put the money to use and have a secure future.
- Watch your spending – Make a note of monthly household expenses and keep a tab on where you can cut your spending and utilize the money for some short or long-term goal that you would want to achieve. For example, if you are an impulsive shopper, wait until a sale comes up and do your shopping then. This will help you save quite an amount.
- Save as much as you can – Always look for saving wherever you can. In other words, when unexpected money comes your way as a gift, husband’s bonus or by winning some prize money, do not spend it, rather use it to save for your goal. Some sacrifices today would help you achieve bigger and better goals couple of years down the line.
- Create a financial plan – Make realistic projections of time and money to achieve your goals. Be it a simple television purchase, two or four wheeler purchase, going on a vacation, saving for your child’s education/marriage, retirement, or for an emergency fund. Make sure at least 80-85% of your projections are accurate. Accordingly, prioritize based on time horizon (short, medium and long-term).
- Learn about different financial products – There are a variety of financial products available in the market. Being able to match your goal to the right product is when you hit a bulls’ eye. Sit with your husband and discuss to understand the various products. Invest in the best one that would help you achieve your dreams.
- Invest – Get into a habit of investing on a regular basis, rather than waiting for some lump sum amount to come your way to investing. Small amounts invested for long durations would do magic to your capital with the Power of Compounding.
- Try work from home options – Nothing like earning few extra bucks for the family while sitting at home. Look for some entrepreneurial opportunities that would keep your skill to work or freelancing jobs. This will help you in easing out the financial situations at home and achieve your dreams with a little more ease.
The Right Approach
If you are able to save even small amounts from your monthly budget you are good to go. Rather than consuming or spending the amount on unnecessary things or buying gold every now and then, invest towards long-term goals that your family wants to achieve. The best option available to invest small amounts on a monthly basis is through Systematic Investment Plans (SIPs). You can invest in mutual funds through SIPs and see the magic of compounding effect over the long term. There are mutual funds available for different investment horizons and for investors with different risk appetites. Upwardly helps you invest in right mutual funds that suit your needs the best without much hassle and you can get expert advice for free.
Being a homemaker and taking care of the family is the greatest gift for a woman. Make this even precious by being financially prepared! Happy Investing.