Working outside of the home and financial freedom were terms barely associated with women of ancient days. However, the modern woman has the choice to climb the corporate ladder and become rigorously self-sufficient. Notwithstanding how far society may have come in terms of women’s rights, it is yet to grant women ample exposure to financial literacy that they need. After all, earning money is just the means, with the end being its proper management – optimal saving and spending.
Importance of Knowing Personal Finance Basics
A woman should be able to answer the following five questions about her household’s finances. These questions are essential for future financial planning.
- How much do you, as well as your spouse, earn after tax?
- How much are your living expenses?
- How much do you save each month?
- How many types of bank accounts you and your spouse have, and their balances?
- How much money is invested, and in which financial instrument(s)?
The knowledge you derive from answering these basic questions will act as a starting point for more finance-related questions. You should also stay current on various schemes that the Government of India, banks and NBFCs roll out, especially for women. They can help you save a significant amount of money in the long run.
For example, availing easy home loans can save a substantial amount of interest payable during the loan tenure. Several lending institutions offer special interest rates on home loan for women borrowers and also relax the home loan eligibility criteria for them.
Taking care of yourself and your family’s mental and physical health is important. Similarly, contributing to your family’s financial health and sharing financial responsibilities with your spouse or parents is also crucial. A woman must have at least the basic knowledge of finance so she can provide a fresh perspective to her husband, who may be the primary financial planner for the family. When it comes to managing household finances, two heads are always better than one.
Conversing with your partner about financial stress and worries will provide him relief from the constant pressure of being the primary financial planner. Financial knowledge will help you become a better partner to your husband and vice versa.
Better Future Planning
If you are oblivious to the basic knowledge of finance, you will never understand the exact financial situation of your household. Sound financial management keeps you ready for any money-related emergencies. It helps you get out of debt and educates you on the benefits of investing in instruments like life insurance policies, fixed assets, etc. The future is unpredictable! In the unfortunate event of a spouse’s passing, a woman must know how to consolidate her finances.
The Bottom Line
No matter your income, financial literacy is the key to unlocking true financial freedom; investing in real estate is one of the many ways of building a solid financial foundation. And for buying a house, choose reputable lending institutions like Tata Capital. We offer home loans catered exclusively for women’s needs. Enjoy competitive home loan interest rates and high eligibility. Visit our website to check your EMI using a simple online home loancalculator such as the home loan EMI calculator before you apply for the loan. Get in touch today!