There are many housewives who are totally dependent on their husband and are not involved in finance related matters. Still they are manager of their house and one of their duty is managing the whole household budget. In the last few years, there has been a rise in inflation however the salaries have not risen in that proportion.
But many a times it happens that whenever any major emergency arises in the house, for e.g. husband loses job or gets critical health problem result in earning to stop completely but not the expenses. In such a scenario, it is important for housewives to have complete knowledge of financial planning.
So let’s see how housewives should plan finances:
- Money flow management: Normally housewives plan out budget for grocery or other household things whereas budget planning for loan (home/car/personal etc.) or bills for credit card, telephone, house rent etc. is done by the husband. But housewives should learn to manage these finances as well. Once this is done, you should analyse household earning and spend. This will help you to understand where are we spending more and how it can be controlled. And this task is not a rocket science and does not need any help from an expert. You can do it on your own or take your husband’s help.
- Control your spend: If you have analysed the cash flow then it’s a time to control each of these wherever possible. For e.g. if monthly spend on electricity is Rs. 2000 then you need to check why is it so high, what resources we’re using and how it can be controlled. So if you’re using washing machine every day then reduce the usage to 3-4 days a week. This will cut your electricity bill by a significant number. Similar check should be done on monthly expenses incurred in hotel, shopping in malls, etc. If you are a shopping fanatic, look out for deals/discounts. Doing this will save you good money. If you are a movie goer, then watch it on weekdays as tickets will cost you less as compared to weekends.
- Save, Save and Save: Always look for saving money wherever you can. For e.g. if you don’t have bank account then open normal savings bank account. One such account is Pradhanmantri Jan Dhan Yojana. Government has also started various social security schemes such as PAHAL scheme for gas subsidy, Jeevan Jyoti Bima Yojana and many others. Get enrolled and take benefits from these as they are money savers and provide financial security as well. You can also save on healthcare costs such as buying cheap generic medicines which are very less expensive than the branded medicines available in the chemists shop.
- Create financial plan: If you’re totally dependent on your husband’s income then you must know how to deal with finances in case of emergencies. For e.g. if you want to save money for your daughter’s education/marriage, then open account for her in Sukanya Samriddhi Yojana. One of the biggest advantage is that interest earned on maturity would be 100% tax free. You can read this post on downloading PMSSA account opening form. Arranging funds post retirement should also be in your financial plan.
- Awareness about financial products: 20 years down the line things will change, expenses will rise. For e.g. expenses for education, marriage etc. will rise. So think long term and ways to create funds for the same. For this, you need to get knowledge of available financial products in the market, which are the best and what will meet the financial objective and so on. Ofcourse before investing you should consult your husband/expert. This way you can become a helping hand to the breadwinner of the family.
- Investing: If you’re saving every month, then think of how to grow your money in order to beat inflation. Never let your money to remain idle in your bank account or elsewhere. Invest in fixed or recurring deposit etc. Even if your investments grow from Rs. 10,000 to Rs. 11,000, it’s good. Something is always better than nothing.
- Earn money, do work from home jobs: If you are well educated and yet could not provide an helping hand to your husband due to household responsibilities such as growing your children then look for ways to earn money sitting at home. You can work as a freelancer if you are good at writing, graphic designing or provide online training on your expert skills etc. There are many employers ready to pay talented work from home individuals as it cuts operating cost for the company and they are ready to work for less.
Keeping above 7 tips in mind will help in wealth protection and enhancement, making your family’s future more secured and with less obstacles.