Typically, it is women who manage household budgets. Even those women who have careers that require them to be at work fulltime, are still expected to manage the home front. According to Renu Maheshwari, CEO and principal advisor of Finscholarz (a financial planning and portfolio management company) women are ‘ace financial advisers’. According to Maheshwari, women make natural financial planners because they tend to be empathetic, good listeners and able to add value to people’s lives.
The need to multitask gives women unique insight into juggling various aspects of life: professional and personal. Social and familial expectations condition women to use resources optimally while minimising waste. Women who are homemakers will typically squirrel away surplus amounts in times of plenty; for times they there would be extra expenses or when they would be required to be frugal in hard times.
According to Maheshwari, when people approach a woman for money management, they speak frankly about their expectations and future goals. A woman’s personal insight into situations such as pregnancy and childbirth that demand long term planning also helps. This empathetic quality can be a great asset.
According to Maheshwari, being a financial adviser can be a great career opportunity for women for several reasons in addition to the fact that women are particularly well-suited for the role. This is a flexible career option where it is possible to work from home and create one's own working hours.
There is no reason why women cannot manage their own finances and for the family as well. Maintaining one’s financial independence is vital for any woman; regardless of how supportive or progressive, her family is. It is important for women to be aware of their rights, personal and property laws. There should be clarity on asset ownership, such as names in back accounts, bank lockers, immovable property ownership/titles and so on.
As a manager of the home, a homemaker should create a budget and allocate resources based on the family’s total income and requirements. Allocate a specific sum for each month, quarter and year so that expenses don’t go over-budget. If earnings are down – as they are for so many during the COVID pandemic – the budget should be amended accordingly.
First make provisions for essentials such as rent and utilities, EMIs, school fees, the salaries of domestic help, bills such as phone, internet, groceries, fuel cost etc. Once the basic expenses have been met, one can think about other expenses such as leisure activities, eating out, clothing purchases or internet shopping or holidays.
Mere saving is not enough for securing one's future. Women have to think beyond putting aside small amounts for future requirements. It is important not just to save but to grow one’s wealth with the help of proper investments. Women have to read extensively and keep informed about high performing funds and stocks.
Women have to be prepared to take moderate risks and ensure that they invest in a way that helps their assets grow; not just keep abreast of inflation. It should be possible to manage when unforeseen expenses crop up; without getting into debt. There is no reason women cannot be the ‘ace financial advisers’ Renu Maheshwari speaks about – for themselves as well as for others.
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