Women are experts at multitasking. They are created with the divine ability to juggle a variety of responsibilities at once be it at work or at home. At times however this can be overwhelming which makes effective management of household finances a tall ask. Here are some valuable tips that might help.
1. Set a budget
Setting a budget doesn’t necessarily mean you have to deprive yourself of some of your favorite purchases. A budget is simply a tool that helps you monitor your spending and cut back on unnecessary expenses. It is an absolute must if you wish to take control of your finances.
Maintain a list of all your expenses for the month, divide them into categories and tally them up. Next, you should look for categories that can be curbed. It is imperative that you don’t get carried away by focusing solely on the larger cash outflows. The smaller and more frequent expenses can also tend to add up by the end of the month.
2. Develop a habit of saving
As women are naturally born nurturers, most of them tend to have medium to long term financial objectives. A survey conducted recently revealed that these ambitions ranged from from saving towards their children’s education, to investing in a bigger home and even saving for retirement.
As a medium term precaution, it is advisable to set up an ‘emergency fund’ that can cover three to six months of your expenses should the need arise. This can be in the form of a simple savings account. There is a myriad savings plans available in the marketplace fashioned to serve a plethora of needs from education planning to retirement planning which can be used as long term solutions.
3. Invest in insurance
The role a woman plays in her family is invaluable. Women must have sufficient life and medical insurance coverage regardless of whether they are breadwinners or homemakers or a combination of the two.
4. Invest for the future
A comprehensive savings plan for the future is another smart investment move. Start small and grow your investments and level of sophistication over time. Whether you choose to do this on your own, or prefer to work with an expert, a diversified portfolio of investments managed effectively can generate steady returns that are consistent with your appetite to risk.
Financial discipline starts at home where women are queens of their castles. Holborn Assets’ team of UK qualified financial advisers can work with you to create an effective financial plan no matter what your financial goals might be.