9 money tips for the smart woman

Twenty-nine-year-old homemaker Anu Jaiswal's world fell apart when her marriage of four years hit troubled waters. With no family support to fall back on, and hardly any savings to call her own, Anu realised she was heading towards financial disaster.

More and more women have entered the workforce and are independently pursuing career options of their choice, but few know how to ensure a secure financial future for themselves.

So whether you are single, married or married, yet single, here are some basic pointers to have a decent corpus to fall back on.

1. Open a separate bank account even if you have a joint account
Most married women have a joint account with their husbands. If you are one of them, ensure yours is the first name. Even better, make sure you have a separate account of your own. 

2. Save money, but in your name
Mukesh Dedhia, a Certified Financial Planner, says, "To start with, do save money in your name and your mother's name. Create funds through Systematic Investment Planning. Do not touch it unless there is a dire need."

A systematic investment plan, akin to a piggy bank saving, ensures that a certain amount of money is deposited at regular intervals. This enables you to benefit in a myriad ways in the long term.

3. Don’t put all your eggs in one basket
Chartered Accountant Yogesh Thar, says, "First, find out where you stand financially. Take stock of your present situation as far as savings and expenses go. Ensure you have not put all eggs in the same basket. Perhaps you could start with putting money in gold. Though not very prudent, it is a safe investment option with high liquidity. And it helps in times of need."

Ameet Patel, another Chartered Accountant, says, “There is no different set of rules when it comes to investing right. But a careerwoman could try the following investment options:

a. Invest around Rs 70,000 in Public Provident Fund and Rs 10,000 in pension schemes.
b. Depending on your financial capacity, invest Rs 20,000 in insurance schemes.
c. Mutual Funds are a good bet, especially Equity Linked Savings Schemes. Here, you could invest up to Rs 1 lakh.
d. Fixed deposits are a strict no-no, because they are unsecured investments.

"After exploring the above options, park the balance funds in stocks. This should be your last option, considering the high risks involved. You must have a minimum 30 per cent of your portfolio in shares, else inflation will beat you.”

Shankar Teckchandani, a Chartered Accountant, suggests, “As far as investments go, the options for men and women remain the same. The important factor is the corpus and the risk an individual is willing to take.

"For a secure future, you must invest 60 per cent in equities and the balance in mutual funds. If you are the conservative type, invest about 70 per cent in fixed income and the balance 30 per cent in risky avenues. For long-term secure investments, consider parking around Rs 3 lakh in Post Office savings. Here, there is no risk at all. Only good returns.”

4. Ensure your husband has good insurance cover
If you are married, be prudent enough to ensure your husband has a good insurance cover. See to it that you are nominated in all your husband's assets. Most women are not aware of the nitty gritties when it comes to finances, and are content to let men handle all matters of money. It is only when marital discord rears its head that women realise their folly.

Chhaya Datar, Professor, Unit for Women’s Studies, Tata Institute of Social Sciences, says, "It is wrong to think only the uneducated are ignorant about financial matters. Most educated women too know little when it comes to managing their finances. Only when their marriage hits a wall, they realise they need to get things in order.”

5. Ensure you are nominated on all your husband’s assets
Ensure you are nominated on all the assets, bank accounts and insurance policies of your husband.

6. Keep an account of all the ornaments you got at your wedding
For one, it helps you organise your valuables. Second, it helps you in immeasurable ways later should the need arise.

7. Take an active part in your family investment decisions
Men usually take all the investment decisions. Why leave it all to the men? Why not take interest yourself, and invest independently in mutual funds and even in shares? 

8. Take adequate insurance for yourself
Insurance is a must. Ensure an insurance cover of at least up to 10 times your salary. Also do not forget to have an accident and health insurance cover.
 
9. Build your own career
Saroj Maniar, Chartered Accountant, says, "If you are a homemaker, do take up a career. It is important to identify your skills and talents and put it to good use to earn the maximum you can. If not a full-time job, flexi careers provide endless possibilities. And the sky is the limit as far as the earning potential is concerned. You could even consider joining a call centre. This will enable you to earn a decent regular income. Taking up a career is a must to secure a reasonably good income."

Most financial professionals opine that women need to be practical and far-sighted when it comes to financial planning. The future is unpredictable. Don't get caught off-guard. Be independent!