by Sanjeev Kumar Gopalakrishnan, Investing
20 Sep , 2018

Why Should Women Be Obsessed about Personal Financial Planning?

Regardless of personal or professional status, women need to be extremely focused on personal financial planning. From time immemorial most women have been the managing the routine finances of their homes. In most cases, our grandmothers and mothers were our go-to resource for that quick expense we had and the magical women always had money saved away in a secret corner. But today women have stepped into the professional arena, working from home, managing enviable positions at work, and running businesses and homes successfully. With so many brilliant strides that women have taken, how can the art of personal financial planning still stay away from the control of women?  No way!

Women are now well into the business of conceptualizing and implementing their financial plan to meet their critical life goals of education, home, retirement, and health, to name a few. But what are the catalysts that can inspire more women to embrace personal financial planning as not just a “man’s responsibility”? Let’s find out.

 Exposure to the world of personal financial planning

Women often tend to take the support of men when it comes to managing money because of lack of awareness towards the subject. So, Women need to improve their knowledge regarding different financial products to improve their level of confidence and broaden their views on finances. Many apps and online resources today are delivering just the right dose of information in financial planning with simple blogs, news articles, and pointers that can help women who are just stepping into the world of investments and plans.

Get a financial backup plan ready

It’s common human tendency to have a backup plan for almost every major or minor plans in life. We need to extend this extensive planning to personal planning too. It is a general notion that one should be well-prepared to handle the expenses of at least 6 months at any time due to the financial crunches that may arise at any moment in life. An emergency fund should be kept aside as part of financial planning to face the surprises that life throws up.

Plan for breaks with more confidence

Many professionals are in a situation when they need to reschedule their work and life balance to care for their children or the elderly at home or other reasons. In such cases, well-planned financial goals and implementation of these goals will provide you with the much needed monetary support when you are taking these breaks.

Plan for a relaxed retired life

Post-retirement life can be tough when you have not included a financially peaceful retired life as one of your life goals, especially with health issues that crop up at this age, preventing you from leading a hectic professional life. So this thought of making yourselves monetarily independent in the presence or absence of your life partner is one of the strongest catalyst to think about personal financial planning.

Let’s get started with personal financial planning

While the thought of getting started on your personal financial planning journey is exciting, the road to success might not be all that straightforward. So here are a few tips.

1.      Take a step back and determine what you want from the entire exercise – set your life goals and then connect them to the finances that will help you get there

2.       Budgeting might seem like a daunting task in the beginning but one can adopt budgeting into life easily. Take an active interest in determining the percentage of your income that you are actually spending and how much you can cut back on.  

3.      There are a plethora of investments options available to choose from. Always try to have a diversified portfolio which has enough liquidity to help you in sudden crises and which can guide you towards relaxed retirement.

4.      Life insurance and health insurance should be an integral part of every woman’s life. Step forward to know about all the financial instruments to which you are assigned as a nominee.  

5.      Seek the help of an expert financial advisory service or an investment planner who can help you get your plans right.

Personal financial planning is an important part of every woman’s life. Being proactive about financial planning can definitely help you to be more independent and peaceful during your retirement. So, start planning your finances right now.

 

PrognoAdvisor is your trusted online financial planning service from India, with extensive expertise in understanding your specific financial and life goals and guiding you achieve these goals with confidence. Connect with our financial advisors at Prognoadvisor.com to understand how you can simplify the entire process of personal financial planning in terms of both long- and short-term investments that help you achieve smart wealth creation and management, delivering, of course, some smart tax savings.


 About The Author

Sanjeev Kumar G, an IBS Chennai Alumni, is a Certified Financial Planner (CFP) from India, since 2005. He has 22 years of experience and is an expert in various personal finance areas like portfolio construction, investment research, life insurance and financial planning.

 

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