Everything you need to know about the financial independence of housewives and children

Financial independence is something each of us deserves and must strive for. For me, financial independence means matching income and expenses with savings incurred on a regular basis, to achieve the goals you set for yourself. The process requires strategic planning and determination.

Why financial independence?

1. Brings Self-Confidence and Self-Respect: There is a popular saying that money keeps the mare going. Money may not be the ultimate goal, but without sufficient funds life is not easy for anyone. If one is able to plan, save and invest for future needs, one will not need to depend on anyone else. You will be able to achieve certain goals and dreams that you have set for yourself.

2. Social security: A financial resource defined in its pot can be useful to overcome emergencies. Start with what little you have; it will grow over time. Having the necessary funds will help cover any unforeseen expenses, or even help loved ones in need.

How to do it?

Save out of habit: It is imperative to save, no matter how little. The earlier you start, the better. Saving and investing appropriately helps to cope with regular and sudden expenses. But it goes further; you can afford a reasonable after-retirement life.

No Loan, No Liability: The best thing under normal circumstances is to avoid any type of loan or long term liability whenever possible. However, at present, due to the easy availability of loans assisted by EMI, it is easy to get the loans. Therefore, take a loan but in a disciplined manner. Avoid taking out a loan for things that are not essential. Likewise, with credit cards, balanced use ensures that you enjoy the benefits without going into debt. Used wisely, these products can increase savings.

No idle money: With the exception of an emergency fund, all available excess money should be channeled to desired means, e.g. mutual funds, public provident fund (PPF), stocks, gold, term deposits, etc. Money should not sit idle.

Small can get big: Often times we dismiss or overlook saving, saying our savings are too small to plan. But small amounts can become a great resource. So, don’t wait; just start. Regularly channel your savings with the little amount available.

Ensuring the financial independence of housewives

Many people, including housewives, will wonder how this is possible for someone who has no secure income. This is not only possible, but it is also a right.

Housewives without income receive funds for household expenses, pocket money and gifts from family or friends. All surplus funds, without affecting the budget or family expenses, should be deposited into a financial instrument; of course, after keeping some cash on hand for routine needs.

Here are some steps to follow:

Keep a piggy bank for depositing change, smaller banknotes, or whatever is left over from daily expenses. You will be surprised to find that within a few months a reasonable amount has been collected. Have a separate bank account where you can deposit your savings as well as any freebies you may receive.

You can also follow safer avenues of wealth creation, such as mutual funds. [via lump sum investments or Systematic Investment Plan (SIP)], recurring deposit (RD) in banks or post offices, some term deposits, and even investing in stocks according to your aptitude, belief and understanding.

You can start a SIP in a mutual fund with an amount as small as Rs 500 per month, but the more the merrier.

Financial independence for children

The question of children’s financial independence depends on various factors such as household income, age of the child, whether both parents work, place of residence, etc. The approach can be very different from one individual to another, but I think that whenever possible, parents should avoid giving children pocket money except for some basic needs or as time goes by. and as needed.

For children of money management and pocket money age, their spending needs to be monitored. They should also be advised to save money in a piggy bank or bank account. In this way, they could better understand the value of money and cultivate the habit of saving as a first step towards financial independence in the future.

The author is a former employee of the Indian government and has worked in the agricultural sector.

DISCLAIMER: Opinions expressed are those of the author and Outlook Money does not necessarily endorse them. Outlook Money will not be responsible for any damages caused to any person / organization directly or indirectly.

Comments are closed.