The Maiden money manager

It's not your salary that makes you rich, it's your spending habits.

By Sarabjeet Kaur  
Monday, March 7, 2016

It's not your salary that makes you rich, it's your spending habits. So, stop splurging, take note of the following tips, and take control of your life.

The itch to shop and splurge is known to overwhelm even those who are in 'control' of their lives. But it is supposed to be more true of women than men. When it comes to investments, however, women best prefer to leave it to their fathers or husbands - a decision that they are often found to regret later.

Despite that, according to statistics, only about 30 per cent of Indian women take money decisions. This, therefore, raises a question. Indian women are traditionally good managers, competently fulfilling their responsibilities both at work and home.

But are they doubtful money managers? Well, the answer, perhaps, lies in their love for spending, because taking charge of one's financial life is not about how much one earns, but how well one saves, besides being a patient and informed investor at every stage of one's life.

So, the first step for a woman of any age is to rein in her desire to splurge and, instead, get the priorities right - from her child's education and wedding to her own health and post-retirement life. "It's important for women to take more interest in money. They earn well, but don't manage their hard-earned money well. Women should also take the trouble to educate themselves on finances in their best interest," says Suresh Sadagopan, Founder, Ladder7 Financial Advisories.

And, the earlier you start planning for both your short- and long-term goals, the better the results will be. Moreover, you could even seek expert advice to chart your journey towards financial security. "There are qualities, traits and circumstances that are unique to women, but like in all matters even when it comes to money, women need that extra bit of communication, sensitivity and maturity in her advisor," says Lovaii Navlakhi, a certified financial planner.

Whether you are single, married, or separated with dependant children, every individual will have her own requirements and priorities. Therefore, it is very important to align your goals and investments before choosing the investment vehicle(s) - equity, mutual funds, gold, insurance and property. But above all, be an early-bird and disciplined investor with loads of patience.

Working and Single with no dependants

Experts have always advised that to save enough one should start early and at the right age. So, early- or mid-20s is a great time to start saving. If you are already working, it is an added advantage. But before you start, be informed and and have a financial plan in place.

Single with dependants

If you have your parents as dependants as you start working, then you should be prudent before charting your financial plan.

Married with dependants:

If you are married and working, it means you have lots of responsibility. You have to manage everything one step at a time.

 Married with no kids and dependants:

If you are married and working, but do not have dependants, you are at an advantage because you can save some money before you decide to plan for a child. To take care of children is not an easy task.

Single mom, Separated Or Divorced:

Being a single mom is not easy, especially if you are working and there is nobody to take the responsibility of you or your children. Therefore, follow some basic rules of investment.

It is prudent to know that if you do not take care of your money, then money will never be by your side. So, wherever you are in your life, start planning for a secure future.

                                                                                                                                                                                                                        Follow the writer on Twitter @Kaursarabjeet

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