Financial planning is a  process which helps you to create structured and sensible decisions to help manage your finances better. This guides you to achieve finance and life goals by proper management of your finances.

Financial planning is crucial for every individual. But , women tend to spend lesser time and energy on financial planning. When it comes to financial planning, women are either not aware, not interested or reluctant to do so. While general principles of financial planning remain the same for every one, women definitely face unique challenges here. This makes financial planning for women a different challenge in itself.

Before we go to some financial planning tips for women, here are some reasons why you need to build a solid financial plan:

Live More.. Plan more

Women in general outlive men by almost 5 years though this gap is reducing now , which means there is a distinct probability that you would have to take care of your money  some time on your own even if you are married, so its important you start early.

Higher Divorce Rates

Divorce rates are steadily increasing in India, which means as marriages face some kind of martial discord, so it is important to ensure financial independence. If and when such circumstances arise, a proper financial planning will help avoid any kind of financial distress. You can create a financial safety net for you and your children.

Women earn less for the same job

There is enough data to show that on an average women earns less then men for the same job. Global research points out a wage gap of 15-20 % between women and men wages. How that gap gets reduced is a bigger question. But, it means women need to manage their money much better. Hence, there is need for better financial planning

Women can manage everything better including money

There is enough research which says women are better managers then men. They are able to do multi-tasking better and also have long term view of things. All these seem to be great skills for doing good financial planning.

So, ladies out there! Are you convinced that women have special requirement for financial planning? They should invest time and energy to create the same. I am sure after reading this, you’ll be closer to creating a good financial plan. Go ahead and set a bright financial future for yourself and your family.

Financial Planning Tips for Women

1. Financial planning is for everyone, so take control of your finances.
2. Consolidate and review your accounts so that you can start the financial planning process.
3. Create a snapshot of your financial picture, which means summary of your income and expenses (which basically tell how much money comes and how much goes). Keep it detailed so that you do not miss anything. You can use any simple budgeting tool or a simple excel sheet.
4. Next step is to create an emergency fund , this help you to have enough money for a bad day like job loss or unforeseen financial obligations.
5. Let’s talk money honey.. If you are married start a conversation with you husband on financial planning. It will always be better you go in sync and align your individual and joint goals. Build a consistent plan for the whole family.
6. Get Insured adequately, that’s the most important step in your financial plan. You require both life insurance and health insurance. Check if you have the adequate cover. Check the cover your employee provides, and see if it is adequate. In general, you anyways require independent health cover because you will not have employee insurance cover forever.
7. Start working towards a retirement plan now. You need to start planning for your retirement right now. If you are married talk to your husband so that you can together create the plan again retirement planning. If done early, this helps you save much higher.
8. Hire a good financial planner or use a online service for financial planning.
9. Don’t shy away from trying different investing alternatives as per your risk profile and investment horizons.
10. Start planning your investments right now!

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Do you have any other useful financial tips in mind? Any experiences you would like to share.