- Date : 21/12/2022
- Read: 3 mins
Financial planning ensures that the present needs of an individual are fulfilled while safeguarding their future requirements. Formulating a financial strategy can be difficult for those who do not know about financial planning. We bring you some of the best financial strategies that single women can utilize in 2022.
Financial planning is understanding the current expenses and the future requirements to spend and save money effectively. Thirty percent of working women in India are the sole breadwinners for their families. Most of these sole breadwinners are Single women who face multiple struggles in their personal and professional lives. Financial planning is essential for these women as it paves the way for a secure future.
Read on to understand the best financial strategies for Single working women or Lone Soldiers of India:
Also, read Investment Strategies to learn from Women!
1. Work on financial literacy
An individual can only work on financial planning if they know to understand it. Women must focus on developing their knowledge about finances to understand how they can save or earn money. With the availability of hundreds of websites, blogs, and videos on the internet, women must keep themselves updated about key finance topics.
2. Focus on budgeting
Budgeting involves keeping a record of all the expenses made by the individual. Budgeting allows the individual to recognize the expenses that can be minimized or completely avoided. Shweta Jain (CEO of Investography) states that it is tempting to make purchases but difficult to save money. She suggests that every woman should save money and keep it aside for emergencies in the future.
3. Have a cash cushion for emergencies
A cash cushion is defined as savings that can provide support to an individual in case of emergencies. The emergency can be a change in job, family emergency, or health issues. Regardless of the emergency, this cushion provides time for the individual to get back on their feet. For single women who might have an entire family depending on them for their needs, it is suggested to have at least 6 months of savings as an emergency fund. Here's our eBook on How to build your Emergency Fund
4.Investing is the key to financial planning.
Investing money is one of the most important financial strategies. Women should invest a part of their monthly savings to grow their savings exponentially. Renu Maheshwari (CEO, Finzscholarz Wealth Manager) suggests that women should invest in growth opportunities such as equity. Investments can be kept as an emergency or retirement fund.
5. Purchase an insurance plan
It is not the expected, which can cause financial instability but the unexpected, which can shatter an individual's financial budget. Every woman should have an insurance plan for themselves and their family. In medical emergencies, a family health insurance plan could save them a lot of money which can secure their family's future. Having a life insurance plan can safeguard their family's future.
6. Create a succession plan
Formulating a succession plan ensures that the assets are distributed appropriately among the family members. Finances can become a dispute among various families and lead to legal complications. Therefore, it is crucial to have a succession plan.
Also read: Indian Women who inspire us!
Final Words
Being a single breadwinner is a difficult task and a single woman breadwinner is even more difficult. Women must understand finances and utilize financial strategies to safeguard their future. Women should critically analyze each strategy and understand that these strategies are important for their financial acumen.
Financial planning is understanding the current expenses and the future requirements to spend and save money effectively. Thirty percent of working women in India are the sole breadwinners for their families. Most of these sole breadwinners are Single women who face multiple struggles in their personal and professional lives. Financial planning is essential for these women as it paves the way for a secure future.
Read on to understand the best financial strategies for Single working women or Lone Soldiers of India:
Also, read Investment Strategies to learn from Women!
1. Work on financial literacy
An individual can only work on financial planning if they know to understand it. Women must focus on developing their knowledge about finances to understand how they can save or earn money. With the availability of hundreds of websites, blogs, and videos on the internet, women must keep themselves updated about key finance topics.
2. Focus on budgeting
Budgeting involves keeping a record of all the expenses made by the individual. Budgeting allows the individual to recognize the expenses that can be minimized or completely avoided. Shweta Jain (CEO of Investography) states that it is tempting to make purchases but difficult to save money. She suggests that every woman should save money and keep it aside for emergencies in the future.
3. Have a cash cushion for emergencies
A cash cushion is defined as savings that can provide support to an individual in case of emergencies. The emergency can be a change in job, family emergency, or health issues. Regardless of the emergency, this cushion provides time for the individual to get back on their feet. For single women who might have an entire family depending on them for their needs, it is suggested to have at least 6 months of savings as an emergency fund. Here's our eBook on How to build your Emergency Fund
4.Investing is the key to financial planning.
Investing money is one of the most important financial strategies. Women should invest a part of their monthly savings to grow their savings exponentially. Renu Maheshwari (CEO, Finzscholarz Wealth Manager) suggests that women should invest in growth opportunities such as equity. Investments can be kept as an emergency or retirement fund.
5. Purchase an insurance plan
It is not the expected, which can cause financial instability but the unexpected, which can shatter an individual's financial budget. Every woman should have an insurance plan for themselves and their family. In medical emergencies, a family health insurance plan could save them a lot of money which can secure their family's future. Having a life insurance plan can safeguard their family's future.
6. Create a succession plan
Formulating a succession plan ensures that the assets are distributed appropriately among the family members. Finances can become a dispute among various families and lead to legal complications. Therefore, it is crucial to have a succession plan.
Also read: Indian Women who inspire us!
Final Words
Being a single breadwinner is a difficult task and a single woman breadwinner is even more difficult. Women must understand finances and utilize financial strategies to safeguard their future. Women should critically analyze each strategy and understand that these strategies are important for their financial acumen.
