A Simplified Guide To Financial Planning for Women In India

Welcome to our insightful guide on financial planning for women in India! At LXME, we recognize the unique financial journey of women and provide a simplified approach to help you navigate through it. Discover empowering insights and expert advice on effective financial planning and investments tailored specifically for women. Let’s embark on this journey together with some financial planning tips for women and move towards financial well-being. Read on at lxme.in for a brighter financial future.

For ages, we have seen that financial planning is one of the powerful tools for surviving in this inflation-bearing world and fulfilling all life goals. The way everyone has basic needs such as food, clothing, shelter, and education same way financial planning should be added to our basic needs. Always remember, it’s a life skill! We all know that setting goals is important, but we often don’t realize how important they are as we continue to move through life.

So, we need to plan for it. Financial Goal planning refers to setting financial goals and developing plans to achieve them. To set financial goals, one must first prioritize the events in one’s life that will require funds. Also, working towards your target is easy when you have a clear picture of what you’re aiming for. That means that your goals should be measurable, specific, and time-oriented.

Goal-based financial planning is essential for both men as well as women. In India, Women today are breaking all barriers & moving towards personal, professional, and financial progress

and independence! However, financial inequality still exists between women and financial planning, such as investments.

Therefore, as per LXME’s Women and Money Power Report 2022,

According to LXME Women & Money Power Report 2022, 76% of women are looking for a platform that would make investing easier. So LXME has got your back to simplify money management for women and financial planning. Let’s get started!

A Step-by-Step Guide to Getting Financial Stability for Women: 

Financial Planning is a process to assess your current financial situation and managing it efficiently to achieve future goals.

Due to the fact that women should manage their own financial affairs to be financially secure and economically stable, there is a need to plan for finances. While doing so, women also need to consider factors like life expectancy, the time that may be taken off for maternity, and the different wages between male & female workers.

Evaluate your position in the present.

When making a financial plan, the first thing that needs to be done is to look at your current financial situation. To do this, you need to look at your income, spending, debts, savings, and other expenses. Your budget is one of the most important things to think about before making any kind of plan. Keeping track of your spending can make you aware of your habits. You can use LXME’s Budget Planner for the same.

Set financial goals.

These include financial goals that a person wants to reach within a certain amount of time that are reasonable and attainable. They can be short-term, like paying off credit card debt, or long-term, like saving for retirement or buying a house. Make sure your goals are clear, measurable, attainable, relevant, and have a deadline.

Create a budget.

One of the most important tools for managing money is a budget plan, which is often called the “backbone.” Follow the golden rule of budgeting for this according to which 50% of your income goes into your needs like rent, groceries, and insurance. 30% goes into your wants like dining out, trips, gadgets etc, and 20% goes into saving & investing. You can revise this according to what suits you best.

Review and Optimize Your Benefits Package.

Check with your organization about all the benefits & perksyour employer provides. These include health insurance, retirement funds, stock ownership, and other ways to be remunerated. If you want to improve your financial security, make sure you understand these benefits and use them to their fullest.

Build an emergency fund.

To save for a rainy day, you need to have a backup fund. Start a high-yield savings account and put away enough money to cover your living costs for three to six months in case it gets difficult. This fund will be used as an emergency fund in case someone loses their job, has to take time off work due to medical emergencies, or something else unexpected happens.

Pay off high-interest debts.

You may have very high debts, like credit card debts, that can really slow down your financial progress. Debts like these should be paid off as soon as possible because they use up cash that could be saved or invested for the future. 

Save for retirement.

Making plans for retirement should begin as soon as possible. Join retirement plans offered by your workplace, such as the Provident Fund (PF). You can also choose from other retirement plans, such as the National Pension Scheme (NPS) and Individual Retirement Accounts (IRAs). You should not rush when you are saving or investing. Making regular payments and letting them grow by compounding will make sure you have enough money for retirement. You can plan for your retirement with LXME’s Retirement Calculator and start investing too.

Invest wisely.

Investing money is important if you want to make more than you put in. Put your money into stocks, bonds, mutual funds, and real estate, so that your money isn’t tied to just one type of asset. You can start your investment journey with LXME, an investment platform for women. We have goal-based mutual fund portfolios that are curated by experts, you can invest with just a tap. 

Automate your finances.

It could help you manage your money and make sure you reach your financial goal. One suggestion is to automate your investments. Don’t pay your bills late; pay them on time to avoid late payment fees and improve your credit score. 

Monitor your progress.

To stay on track, make a financial plan and stick to it. If you need to, go over the plan again and again and make changes as needed. Life events like getting married, having a child, or switching jobs could make you change your plan in some ways. 

Conclusion

Personal finance for women needs to be tailored to the special challenges that women face to ensure the best financial outcome for them. Through these actions, women will be in a position to optimize their financial assets and create the perfect future for themselves. In case you are still unsure about how to start, you can speak with LXME’s money experts on a free 1:1 call and clear all your doubts.

Happy planning!

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FAQs – Common Questions on Financial Planning For Women

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