- Date : 11/01/2023
- Read: 3 mins
Financial tips for housewives on money management
Housewives are respectfully referred to as the backbone of society. In Indian society, a housewife takes care of three generations of people, a contribution that often gets hidden in plain sight. Although patronizingly referred to as homemakers, with their tireless toil, housewives are the makers of the nation’s economy. Besides, housewives also handle some amount of money in their day-to-day life for household expenses and savings. When done smartly, this financial planning can be of immense help to the family in times of need.
Have an Expense Plan
Housewives have a clearer vision of the household needs, and therefore have more clarity about the monthly expenses. Many of them handle money directly, with their working spouses handing them over the entire salary, or a part thereof. From handing out salaries to the maid to paying utility bills, a housewife can convert her money management to design a complete household budget.
Also Read: How to save money, Strategies for budgeting
Get a Saving Plan
Out of the total money handled, a housewife plan to save a portion for future financial needs. There are many saving options that a housewife can opt for, and easily maintain. Some of the popular saving and investment options that can secure the financial future of a housewife include,
- RD – Recurring Deposits are a popular investment for people who prefer to save at regular intervals to create short-term funds or emergency funds. RDs are available at all banks, financial institutions and post offices. They offer a higher rate of interest than a savings bank account. Housewives can opt to save monthly in RDs, although other deposit interval options are also available.
- POMIS – Housewives can visit their neighbourhood post office and start a post office monthly income scheme with an investment as low as Rs 1,500 per annum. Its unique attraction is the monthly interest payout, thus gaining financial independence through a steady income.
- PPF – For a long-term investment with the flexibility of deposit, Public Provident Funds offer a high-interest rate. You stay invested for 15 years and can deposit up to Rs 1.5 lakhs in a year. Housewives can fulfil retirement planning through the long-term compounding of their deposit and interest income with PPF.
- NSC – Housewives can invest in lumpsum through National Saving Certificates. NSCs have a lock-in period of five years, and investments can be made for a sum as low as Rs 100. Investments like NSC, PPF and POMIS have sovereign backing which makes them highly safe investment options.
- SIP – Housewives who want to move beyond the conservative investment options and venture out to mutual funds can do so through Systematic Investment Plans. You can invest in mutual funds across different asset classes as per your desired risk exposure. SIPs are ideal for long-term planning and growth.
- Gold – Gold is preferred by housewives for ornamental as well as long-term investment purposes. While investing, housewives can consider gold in non-jewellery forms, thus saving the making charges. Digital gold can save you from storage concerns as well.
With these financial planning tips on spending and saving, a housewife can assume financial responsibilities along with the earning members of the family. This will not only secure her financial future but also her family’s.
Also Read: 5 apps that will help you save money and how