A working mother has a tough job at hand. Juggling between her work, managing the household, and her child/children comes with a plethora of challenges. In between all this, managing finances is probably the last thing on her mind but experts state that minding money matters should be given priority to ensure a seamless future for the woman. So, if you are a working mother and want your financial database to be strong, follow these 6 tips stated by Ms. Nehal Mota, co-founder & CEO of Mumbai-based financial planning platform, Finnovate.
6 Ground Rules For Working Mothers To Manage Money
As per Ms. Mota, "Many women still find themselves caught between the traditional and the modern; with strong commitments on both sides." She says that these 6 ground rules can help working mothers handle their money like a pro:
1) Avoid Impulse Buying
Quite often, it is tough to draw the line between genuine spending and impulse buying because they look so similar. Before you buy anything, ask if it is adding any value to you or making your life easier as the last thing a working mother should worry about is mounting debt on her credit card and an array of consumer loans.
2) Create an Emergency Fund
Setting aside about 5-6 months of your income in liquid assets is not just a good back-up for you, but also for your child. Above all, you have the leeway to take a break, explore other options, consider working from home, start your venture, etc. The emergency fund gives you these privileges. That may sound hackneyed, but working mothers must not miss this part of financial planning.
3) Build Up On Insurance
Take family floaters, top-ups, anddeductibles but ensure you have enough life and health cover to combat a tough scenario.
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4) Plan Early Retirement
The earlier you start your retirement plan, the more risk you can take in equities (shares in a company) and the bigger corpus (total money invested in a scheme) you can create. With a good corpus, you can explore so many more options post-retirement.
5) Buy a House
Even if your spouse has already purchased a house, it is always better to be independent. Life situations change at short notice and a roof over your head is the ultimate security. Also, a home in your name is an asset that you can leverage at a later date.
6) Seek Professional and Peer Support
When you are in a dilemma over financial decisions, consult an expert financial advisor. That is better than experimenting. Above all, try to create a peer group of working mothers and share ideas. There, you can share ideas and several common challenges.
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