The path to effective money management is not as simple as it may seem, particularly when you are dealing with household expenses on a single income. Moreover, if you have kids, the financial costs and responsibilities you need to bear as a parent can be quite overwhelming if you do not have a set financial plan in place.
While it is an incredibly demanding task to ensure that all aspects of your home and family are well taken care of, it is equally important to equip yourself with the right tools for a financially secure future. Be it contributing to a savings account every month or exploring safe investment options, there are many ways to boost your financial stability.
Let us dive into the top 5 effective financial planning tools that homemakers can use to their advantage:
Women generally know their way around the pricing game and often find the best deals in the market quite easily. This knack of simply being aware of the best price can be of great help, especially when you are trying to stick to a budget.
The idea is to adapt to a ‘spend less, save more’ mindset while tackling home expenses. It is best to set aside your savings for the month first, followed by listing out all your monthly expenses - groceries, utilities, bill payments and other miscellaneous costs. Once you have accounted for each of those, start tracking your expenses and check if these expenses align with your budget.
This is the first step towards streamlining your finances that will help you effectively manage wealth in the long run.
Have an open dialogue with your spouse about having a monthly compensation amount for covering your personal needs. It is entirely up to you how you would like to use these funds. On a monthly basis, you can either direct these funds to your savings account or use it to meet your own personal expenses, as needed.
It is important to get a sense of financial independence and having such an amount in place that is separate from your monthly budget and other expenses ensures that you remain financially secure and enjoy the fruits of your labor as your right and not as a favor.
Many homemakers stop maintaining individual bank accounts after marriage and opt to have a joint account with their spouse instead. While the latter is great to maintain your funds as a couple, having an individual savings account gives you the freedom to spend and save money at your own discretion.
You can deposit your savings at the end of each month while earning an interest after a certain period. Further to this, you can also explore other ways to grow your money like Fixed Deposits and Recurring Deposits which can be great long term investments.
The best money investment ideas are those that offer profitable returns based on your needs and financial requirements. As a homemaker, a smart way to strengthen your finances is to start investment planning and tap into financial tools that can help you grow your money.
Instead of letting your savings sit idle in the bank and generate a meager interest amount (which is likely to get overshadowed by inflation), it is better to invest in schemes like, mutual funds, gold etc. The idea is to diversify your investments to ensure profitability and stability at the same time.
For any further guidance, you can check out Dezerv - a platform led by finance experts that offers useful investment tips and portfolio management services to help you boost your wealth using simplified but effective measures.
As it is commonly stated, it is never too late to start something new. You can make the most of your time at home by working on a new skill that could potentially help you generate an income.
There are a number of opportunities online that you can explore and choose based on your qualifications. If need be, you could also take up a course and tread on a new journey altogether. Having a side hustle is a great way to gain financial independence, keep yourself busy and, if you are lucky, spend time doing what you love.