The financial health of women is often a topic that doesn’t get the necessary coverage. More than 35% of the workforce in India are women. But the wealth owned by women is hardly 20%. This vast difference has several factors, but a prominent one is the lack of knowledge on financial health.
An investment plans or savings plan can solve most of these problems. Through it, you can create a decent monthly income plan. But that is not enough. Women should also learn how to create and grow wealth by taking control of their financial choices. This guide will help women to plan and protect their financial health.
What Are the Steps to Protect Financial Health?
Before investing in any savings plan you must first have some funds, to begin with. For that, you can use financial planning. And starting financial planning from a very young age will only benefit in the long run. Given below are some important steps in good financial planning for the future.
Finding Better Employment
Better employment that pays well will allow you to set aside more money for investment or savings purposes. So, you should first find a steady source of income. You can even have a secondary source of income for the sole purpose of investment.
Creating a Personal Budget
A budget will help you understand income, expenses and investment capacity after deducting all the necessary requirements. Efficient budget planning also allows you to make the most out of the income without relying on anyone else.
Cutting Down on Unnecessary Expenses
From the budget, you can realise your unnecessary expenses. These can be due to the extravagant lifestyle, intermittent shopping, or even avoidable tax deductions. By cutting down these expenses you can make more room for a better savings plan.
By Investing in a Savings Plan
Using the entire savings funds available from the budget you can invest in any savings plan. But make sure that your savings plan has a 100% guarantee on the return of investment and interest rate. And if it doesn’t, you can always diversify your portfolio to minimize the risks.
How Can a Savings Plan Help Women Strengthen their Financial Health?
A savings plan can be a high one-time maturity plan or a monthly income plan. In both cases, you will get high returns. Given below are some points which show how these turns can be useful in different situations.
Women can use the funds from the savings plan for any business interest they have. All businesses need at least some initial investment and taking a loan for that purpose is not good as it increases debts and liabilities. By funding a business from personal funds, you can have the maximum freedom in the functioning and policies of your business.
Personal Requirement Fund
These funds are also useful if you are saving money for any expected personal or family requirement. By doing so you don’t need to rely on anyone else for your monetary requirements.
The money from the savings plans also helps during retirement. Monthly income plans can provide a monthly payment instead of a one-time settlement. So, you don’t need to handle large sums of money in your retired life and enjoy peace of mind.
Now you know how even a small plan like a savings plan can play an important role in securing financial wellbeing for women. You can use the points from this guide to secure your personal planning or help someone else secure theirs. But a good way to save money further and add a life cover is to invest in a good insurance plan. These plans will provide you with both advantages and help you further secure your financial health.