Brilliant Tips on Financial Planning for Women

Earlier in most Indian households, all major decisions regarding finances were taken by the father, grandfather, brother or uncle of the house. But now times have changed, women are being included in this decision making. In some instances, they have also started taking charge of their own finances. It is an awakening that has been long awaited. Financial planning for women which used to be a foreign concept has now become a reality.

So, if you are a working Indian woman and looking for tips on financial planning, here they are :
 
Invest in SIP
Information about investing in mutual funds has been blasted through the internet in abundance. For starters, you can choose to invest in a Systematic Investment Plan (SIP). Apart from serving as a mode of investments, it also provides great returns. Pick a plan for a suitable term and the amount will auto-debit from your account on a specific date, every month.

                Also Read: Top 6 Government Initiatives for Women Entrepreneurs in India

Other investment options
If you are happy with the returns you get from SIPs then go a step further. Invest your savings in equity, mutual funds, real estate or even gold. It is the next step that many people are taking to build their finances rather than remain content with their income. People are moving on from traditional ways of saving to other investment options like the ones mentioned above. Check with your financial institution if there are any investment plans for women. So, what are you waiting for? However make sure that you know every detail about investing. It should fit your budget for risk and brings you the returns you expect.

Save with RDs and FDs
This may seem like an age-old method to invest but is still one of the most preferred ways to build savings. Even today, parents continue to encourage their kids to save through this method. Why? It provides guaranteed returns. Once the Fixed Deposit or Recurring Deposit matures, you can use the money to invest in options that provide higher returns. Mutual funds and shares are great options. It also works as a great rainy day fund.

                Also Read: 8 Financially Prudent Habits for financial stability

Customized credit or debit cards
Some financial institutions offer special credit or debit cards for women. You can get cashbacks and offers for using your card. The more payments you make through them, the more benefits you receive. Check with your relationship manager about it.
 
Buy insurance
Health insurance is important. Not only are you safeguarding yourself but also your family members. In today’s world, it almost seems absurd if you do not have one. So, pick an insurance plan that covers a list of illnesses, cashless hospitalization, etc. This is a great way to save on tax as well. Here is another thing that most people do not know. You can also pick a ULIP which also provides you an investment opportunity. So, if you still do not have a health insurance, go get one. It will make sure you can take care of yourself.
 
Start a business
You can choose to channel your creativity and utilize your skills to start a business with a small SME loan. Many well-established financial institutions in India offer personal and business loans to women to help them start some business of their own. Apart from SME finance, some of these institutions also provide important tips, guidelines and training material to set up and succeed at the business. Here is a chance to pursue a passion and start a side gig.

                Also Read: Government Schemes for Women Entrepreneurs in India

Save your tax
Did you know that you can save a great deal on your taxes through investments? Equity-linked Saving Scheme (ELSS) is tax deductible up to ₹150,000. It is a long-term mutual fund investment opportunity that you can opt. The lock-in period is 3 years and it falls in the equity asset class. You can also invest in Public Provident Fund. It is one of the safest options as it is a Government-backed investment plan. Another Government-backed scheme is the National Pension Scheme. It is a saving plus investment pension scheme. The tax incentives amount up to ₹2,00,000 and has the longest lock-in period.
 
If you think about it, women have always been brilliant when it comes to planning finances. Imagine how women managed the entire house back in the day with the little money that they would be given by their husbands.

So, it is time to diversify your investments. Like the business tycoon Warren Buffett said, ‘Do not keep all eggs in one basket.’  Put your instincts as a woman to good use along with these financial tips for women and build a fortune for yourself and your family.