I was finding it really difficult to take charge of my personal money-making skills even being a Chartered Accountant by profession. I was spending money, buying things which I wanted but somewhere that satisfaction of enjoying the money right was lacking. In spite of coming home with a large number of shopping bags or making huge investments, I was always giving it a second thought. Did I spend right? Will that investment really gives me the amount of return that the broker assured? Am I saving enough? It was becoming difficult to find answers. I realized that I have been making 3 major mistakes in my life when it comes to Financial independence and planning.
Many women believe that savings and investment decisions are not their cup of tea. I have been there. Your reasons could be anywhere from lack of financial literacy to being a home maker. However, do you know women are naturally gifted as fund managers. Sorry all the Men reading this! We are not being biased here, but this is just an endeavor to create awareness about a critical subject. A subject which is unknowingly and unwillingly ignored by the women.
3 Mistakes to Avoid to Make More Money.
Financial mentality is a skill every brain can develop and should develop. In times of need or crisis savings made by women members of the family have proven to be savior since time immemorial, be it their priced jewellery or their savings hiding in large rice containers in the kitchen. Do you remember at the time of demonetization in India in 2016 our then PM Mr. Narendra Modi had disclosed all secret savings of the ladies and put men into a shock that they managed to save such large sums of money over years without any primary source of income. At that time, even our family pandit ji discussed about tax implications of Rs. 3,15,000 which his wife had accumulated over the period of 8 years which was not in his knowledge. He admitted that it was good that she did not tell me else I would have spent it somewhere else. However, since it was a big sum of money , he opened up a separate account for his wife for the first time and deposited that money in her name.
As the saying goes
YOU FINANCIALLY EDUCATE A MAN, YOU EDUCATE A MAN, YOU EDUCATE A WOMAN, AND YOU FINANCIALLY EDUCATE A GENERATION.
Hence it is very important that women take on financial trainings, trainings to manage the money and money matters of their home as well. When my mentor came up with a program on understanding money matters I took it up to brushe up my financial knowledge and revived some simple ideas that made great learning. While onto that course I realized I was making 3 major mistakes with my financial caliber. Here, I wanted to share those mistakes with my female friends to create financial awareness and start small towards great savings:
Simple Idea to Plan Money Better – Avoid these 3 Mistakes in Money Matters
FORGETTING ABOUT PIGGY BANK
Piggy Banks were a must have in our childhood, but why do we adults forget our friend and its vital role as we grow up? The reason piggy bank in introduced to kids at an early age is simple, to understand the value of money. However as we mature in worldly matters, we tend to forget our little friend and we get lost in the maze of these complex terms savings and investments. Let’s unlearn those fancy words for some time and get back to basics.
I suggest you restart your PIGGY BANK or A MONEY JAR. How? Simply take any jar out of your kitchen and set aside a fixed amount daily/ weekly into it. You can also put all changes and coins lying in your purses, pockets. In India we have this beautiful custom of receiving small cash gifts even in pujas, weddings, etc; make it all a part of your money jar. In no time your money jar will grow to a level that you can fulfill simple sweet desires and show some self love.
Use this money to love yourself by gifting a spa visit, a book, a foot massage, a dashing color of lipstick, a coffee treat, all this to yourself from your own money jar. If you want to make big buys, hold on longer, paste a label over it reminding you of your goal and you would reach there really soon.
Sometimes we don’t even realize and the month end leaving us with minimum bank balance. Imagine a bucket full of water to be poured into various colorful glasses labeled loan repayments, household expenses, kid’s education, savings, investments. Start taking out portions in the glasses, till the time we reach to our savings glass, whoosh!! Water is either over or just a spoon left.
What we have been doing is , prioritize spending over saving. Now, shift that glass labeled as SAVING to the first row and now start pouring. Yes, you got it right, we need to save first and then spend. This way we focus on our expenses and are growing stronger and safer for the future as well. Even if you are not earning income of your own and your husband is taking care of all expenses, it’s important for you to have financial integrity.
Ask husband for a fixed amount of money as a monthly budget, it could be any amount depending upon your comfort. A separate account in your name is a must. Decide upon how you want to spend that money on yourself, your kids or your family or even to surprise your husband with a gift which otherwise would be difficult if you have to ask for each expense that you make.
NOT PREFERRING QUALITY OVER QUANTITY
DISCOUNTS, OFFERS, CASHBACK, SALE …. All these words are such music to ears. But, beware, my friend, it’s not always a win-win deal; 80% of the time all this is a trap. We get attracted by these lucrative offers and end up buying items that are either not that worthy or at times not even needed. It’s always better to focus on quality over quantity. Rather have 5 beautiful sarees on the discounted price of Rs. 500, go for one ravish saree worth Rs. 2500. Not convinced? OK, look into your wardrobe and look for the dresses that were picked up on a sale and you really love yourself in it. I am sure you will get the answer. Always, make a list before you intend to shop be it online or in physical mode. This would not just save your money but also your precious time which is wasted on sheer scrolling into website looking for another and yet another product. Remember, time is money, and you cannot afford to spend it erratically.
Hope you would learn from my mistakes, which could be yours too. Try these tips and tricks over 52 days and you would find yourself financially more strengthened. Would love to hear from you about these tips turned out to be good in your case or what challenges you faced, I would be happy to help with more details on how to manage your finances.
Content Contribution By: Shruti Gupta
Read other post by the Author: 5 Gadget-free Ways to have Fun with Kids