Anaïs Nin once asked ‘How wrong it is for a woman to expect the man to build the world she wants, rather than to create it herself?’ We do not have a measure for how much it is. Women and men are equally bestowed with faculties and ipso facto are equally adept at handling the reigns of their finances.
Have you ever wondered what makes those people enjoy life in all those comforts in times of such global financial adversity while you bear thrashings from recession? The answer is a planned financial approach.
We show you how:
THE MASTER PLAN
How to Expand Your Earning?
Create multiple income sources.
If you are not in money earning bracket of woman, it’s time to become self dependent. Brace up! Become an entrepreneur. You can do it. Put your inner creative genius to use and create something unique. Sell products or services. Uniqueness and novelty sells. Great businesses are based on simple ideas. Just find a target market and learn to sell whatever products you make or services you offer.
Internet can be your key to ‘opulence’ with a host of opportunities it provides for income earners. Even if you are already a working woman, do not forget to sell your services through the internet to reach a wider audience. Get yourself a blog or a website and learn how to monetize it to your own benefit with advertisements. You can even write an e-book about you experiences, expertise or things of your interest and publish it to mint money. Even online video channels like Youtube lets you make money by posting on it.
World is your oyster if you decide to embark on that journey of self dependence.
How to Save More Money?
Women are most generally associated with the notion that they ‘act on impulses’ more than men. A smart woman always keeps logic handy and emotions at bay when it comes to living life. While it is as easy as a child’s play to spend all the money in your kitty, it seems like a real herculean task to save some dimes in this world of consumerists. Here is how you can mend your ways to save more money than usual in your day to day life:
- Pigs As Banks
Yes, we are taking you to the ‘primary school’ of the pathway to a secure financial future. Start saving money in a small money banks. Make it a strict habit to put in money at regular intervals like daily, weekly or monthly. Be strong enough to resist the temptation of taking the money out and spending it. In time, the entire money cushion that will form in your financial kitty will be a great source of comfort.
- Differentiate Between ‘Needs’ and ‘Wants’
Before pursuing financial literacy at length, it would be prudent for you to learn how to differentiate between your needs and wants. While ‘needs’ are for the things that you absolutely can’t live without i.e. the essentials, ‘wants’ are for things that you desire for various reasons. Learn to kill impulses. And in case this got you wondering, No! The little black dress you saw in the show window last weekend can definitely not be categorized as a ‘need’, honey!
- Embrace ‘Dealing In Cash’ – No Credit policy
It has been proven that visual phenomena affect our psyche in more influential ways than non-visual. For the same reasons it is advised that while shopping one must steer clear from buying stuff on credit. First of all, buying on credit will cost you the value of item plus interest amount. Secondly, buying things against cash makes us more ‘mindful’ of the purchases as against on credit. When you make it a habit of shopping only with cash, you will eventually notice your expenses going down, as long as you stick to the difference between ‘needs’ and ‘wants’ that we just taught you.
- Choose Tax Free Saving & Investing Options
What can possibly be easy as a ‘wealth builder’ than tax free saving and investment options? The answer is ‘hardly anything.’ Government of the country offers a myriad of such schemes to raise investments and provide incentives to people to save. Rajiv Gandhi Equity Saving scheme is one of our favorites to start with. Jump onto them!
Where Should You Invest?
Money fetches more money. That is one rule that holds only if you make prudent investments. For an economy like India, with a brand new government that is ready to take on the world and a favorable investing climate there are a tons of avenues that you can channelize your funds into. Here is a list of smart investing options for a woman who looks to be rich sometime soon:
- Saving Bank Accounts
- Fixed Deposits
- Recurrent Deposits
If you just rolled your eyes looking at the heading given to this paragraph, think again. Banks today offer handsome interests on saving banks account and thus can be an attractive option for hassle free savings. Additionally under section 80 TTA of the Income –tax Act, 196, the interest income from deposits in Savings Bank Account in Banks, Co-operative Society and a Post Office will be exempted up to INR 10,000.
- Bond, Zero Coupon Bond.
Zero Coupon Bond is a bond bought at a price lower than its face value, with the face value repaid at the time of maturity. While it pays no periodic interest to the investor, it appreciates over a period of time (assumed) and can be en-cashed at maturity. Although the bond has long gestation period of around 10 years, it is a great tool for people who are looking for handsome gains. One thing that you need to focus on while purchasing a Zero Coupon Bond is the taxation criteria at the time of maturity.
- Post Paisa
If this one sounds old school to you, there is one notion that you need to change. National Savings Certificate VIII issue, the National Savings Certificates IX issue, Post Office Time Deposit Receipts and Senior Citizen Savings Scheme are some of the good and safe investment options you can blindly trust. Tax deduction under section 80C is also one of the benefits of making such investments.
- Public Provident Fund
Interest income from PPF will now be earned at a rate of 8.7%. What is more is the fact that income from such investment will continue to be exempted from income-tax. However, there is a limit of 1 Lakh rupee over the amount which you can invest in this channel.
- Fixed Maturity Plans
FMPs are close ended mutual fund schemes. It comes with a fixed time limit. The investment period can vary from one month to five years. These funds invest in debt instruments and thus offer impressive returns.
- Funding Indian Start ups
Venture Capitalists and Angel Investors are risk-takers that undertake investments in companies that they perceive have great potential as businesses. India today is brimming with start ups that aim high, just the thing for you is to help all these aims materializes and earn meanwhile you are at it. However, make sure you thoroughly study the market for the business you are about to invest in and also remember that the risk here remains high.
- Real Estate, Real In-state
Real Estate is one sector that can really bring home some great returns to you after a considerable period. The new Indian Government is working a lot towards development in the country with introduction of concepts like that of Smart Cities, these are guaranteed to give a boost to the land value in these areas. This one is a great option if you have got time and money at your hand. You can even rent out these properties for the time you own them to earn additional income.
- Stock Up!
Indian stock markets present you with myriad of opportunities to make investment with their fluctuations. While the risk involved is high, a little market study can make any novice an expert. New found emphasis on industrialization makes some sectors like power sector, banking sector, capital goods sector, real estate show bright indications for near future. However, the stock in which the investment is being made should be thoroughly studies, the sector analysed and a stop-loss fixed. A smart investor carries a diverse portfolio.
- Mutual Funds & Systematic Investment Plans
If figures abuzz at the stock exchange boggle you, mutual funds are an option you must consider. As mutual funds allow an expert to invest money in the stock market on your behalf, for a fixed percentage called expense ratio. Equity funds, invest primarily in equity shares. Debt funds- invest in debt securities issued by government and corporate sectors. Factors like risk appetite and the goal and period for attainment of that goal of an investor define the decisions of buying mutual funds,
Systematic Investment Plan (SIP) is an investment vehicle offered by mutual funds to investors, allowing them to invest using small periodical amounts. These work on the principle of compound interest and thus grow more with time.
- Gold & Silver
Indian woman are smitten with Gold, Silver and everything else that sparkles. Both the precious metals are good long term investment options which fall in the sort of ‘evergreen’ category.
Any other approaches to get rich? We would love to hear!