Gone are the days, when all the financial matters were left up to the husband and women took least interest in planning and investment decisions. But modern retro women are ultimate multi-taskers and are not averse in being a better half when it comes to managing money. They efficiently shoulder all the family financial responsibilities with their husband alongwith household jobs.
The best way to make money in the long term is to identify your talents and skills and put them to good use to earn the maximum. Working from home is not a limiting factor. If you are a good artist or have interest in cookery or dances, you can start the classes for the same. If you are a qualified C.A., start by writing accounts for small clients. For those good at selling skills, direct marketing for products like Amway, Modicare, Tupperware, Avon etc. is a nice option. Moreover, internet today opens a myriad opportunities right from online share trading to selling hand made items across the world through Ebay. Taking up such a career will provide with a decent regular income.
No matter how much money one makes, saving, investing and making it grow is the most crucial part. Begin by organizing finances; comparing assets with liabilities and making a list of the income received and expenses made each month. Now make a realistic budget taking into account emergency fund and cutting down all the wasteful expenditure. A careful check on number of social kitty units which one joins could help in generating savings.
The Budget 2007 envisages a tax exemption limit of Rs. 1,45,000 for woman and with a deduction of Rs. 1,00,000 u/s 80C , the tax free income could go up to Rs. 2,45,000. The following investments should appear in a women’s list:
- Bank FDs
- Mutual Funds especially ELSS
- Residential house with a loan
- PPF, NSC, MIS deposits
- Premium for LIC and mediclaim policy
The money given by husband for household expenses (known as pin money) will not be taxed but the income earned on the investments made from the amount saved out of pin money will be taxable. It must be ensured that household expenses are backed by adequate withdrawals to avoid the hassles of unexplained expenditure.
It would be prudent if the couple has a good insurance cover and the wife is nominated in all of husband’s assets, bank accounts and insurance policies. Keeping an account of all the jewellery and gold ornaments received on wedding helps not only in organizing the valuables but also in other ways later if the need arise. For those looking for making investment in gold, a new product called i-gold is a recommendable option.
Finally financial management is an ongoing process. Maintaining good records and reviewing investments periodically helps in tax purposes and show the performance of investments made. As is generally said, the feminine characteristics of patience, pragmatism and a good intuitive sense make woman great financial and future planners and investors.