Money ‘Wise Women

According to the book of Genesis, women are supposed to be created from the rib of man. Women over the generations have just been assigned the typical roles of mothers, sisters, daughters and wives. The woman of today has proudly taken all the above mentioned roles to another level by straddling with equal ease the professional domains of the corporate world. Hence, women today are teachers, leaders, bosses and much more with equal aplomb. They stand shoulder to shoulder as earning members with their male counterparts.

Sanat Kacker
Independent Financial Advisor
 
However, over the years as an experienced financial advisor, I have come across one common area of neglect in sometimes the most educated and smart women of today, i.e. Financial Literacy. By financial literacy, one means to be prudent and educated about the various financial schemes and tools available in today’s world. Along with the phenomenal growth in technology and infrastructure in the developed world, there have been revolutionary changes in the money world. Money always had many roles. Money Earned, Money Spent, Money Saved and Money Invested. Women actively handle money in all roles, except shy away from taking decisions in the last and most important role of “Money Invested”. So many women I have met have proudly announced that they do not understand the nitty-gritties of investments and so leave it to others to do it for them, most often their husbands, fathers or brothers. This disinterest in some cases have caused some tragic real-life situations. There have been cases where an untimely or sudden demise of a spouse or parent has left the wife and family totally ignorant and lost as far as the family’s financial matters are concerned. It is alarming to see that life insurance companies have so many unclaimed policies as the wives and family are not even aware that a policy exists or how to avail the benefits. So here I would say, “Ignorance is certainly not bliss”

So, dear all, it is time to wake up and shake off the hatred and lethargy to manage money. Some simple and easy ways to start with are: -

1) Read the financial pages of your daily newspaper. Read at least the headlines.
2) Every newspaper carries articles on investment and insurance schemes and tools from time to time. Become aware.
3) Please understand every investment or policy that you sign for before you commit your money. Do not be vulnerable to scams and quick money schemes.
4) Take active interest and participate in the investment decisions of the household.
5) Take help of a financial advisor to give you genuine financial guidance suitable for your goals and needs. He or she will be able to help you understand the various financial instruments like mutual funds, bonds, insurance, etc.

These easy to inculcate simple habits will surely lead you to be more confident. It is important for me to emphasise here that managing your money in the right manner is as important, if not more, as earning it. For, as they say, “A penny saved is a penny earned”.

Money management or money “wise” lessons should ideally start early in life. Children, when given pocket money or money to spend, should be made to realise its value. The habit of saving should also be encouraged at this stage. Maybe an incentive can be contribution towards an expensive toy or phone, etc. Young professionals should channelise their excitement of new-found financial independence to organise their hard-earned money. Simple spending goals and budgets for needs, luxuries and savings and investments are not that difficult to plan. Incentives for saving and investment could be buying a house or car of your own or simply a well-deserved vacation to start with.

The key is to strike a balance between money earned, money spent, and money saved. Be aware of all the three important components. Always plan and keep an emergency fund or amount. Even in cashless economies, there are emergency situations in life where you need a basic component of cash. Finally, do keep a record of all your finances and investments which should be accessible to your near and dear ones in case you need them to. Therefore, a minimum basic level of financial literacy is very essential for all so that they can live their life according to their own choices, thereby contributing to the healthy and prosperous life of their family and the nation overall.

The above views are of Sanat Kacker, Independent Financial Advisor (ARN- 41132 ) Email : sanat666@gmail.com

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