With the combination of later marriage, divorce, widowhood and longevity, almost 90 percent of women will end up maintaining their finances by herself at some point in their lives, according to the Department of Labor.
Despite upbringing, income, marital or motherhood status, a woman needs a solid base of financial knowledge to help set them up for that responsibility. Because a majority of women will be on their own financially at some time in their lives, financial education isn’t wasted. Knowledge can give women confidence that if challenged with being unexpectedly single, they are able to handle it.
For women who hardly have any experience in managing money or none at all, taking small steps can help. Reading websites, magazines and books about financial topics or taking a community college course can provide a great foundation. Professional financial advisors in Ahmedabad can help as well. As the saying goes, there’s no such thing as a stupid question.
For young women starting out on their own, living expenses and paying down debt like vehicle or college loans usually get priority treatment. However, it is much simpler to save and invest before adding larger debt like a house or having children. Employer-sponsored retirement plans provide a fairly painless method – pre-tax payroll deduction – to begin, and singles should strive to contribute at least as much as their employer will match. Enrolling at the time of hire means never missing the money from the pay check.
Having a team of financial advisors in Ahmedabad that can be trusted could help make women less susceptible to scams and opportunists who use people are newly divorced or widowed. Women that are married do not really need a team of professionals apart from their husband’s, but they should have met those experts and be content with them. A traumatic experience like divorce or death is not the time to be looking for a credible professional.
Even if they do not work outside the home, pay the bills or make the investment choices, women should know how much money comes into the household and what percentage goes toward bills, college funds, retirement accounts and savings. They should also be aware of where key financial documents, such as wills and insurance policies, are kept.
Women must understand that keeping the house means keeping all the responsibilities that go along with it financially. On top of that, they might need to buy out their husband’s share in the property. Suddenly a $2,000 mortgage payment becomes a $4,000 mortgage payment. That’s when the advisor becomes important in helping the client make decisions based on financial reality not emotional reaction, because when the decree is final, you cannot claim ignorance.
A firm grasp of financial basics and the household’s financial picture, along with a team of trusted advisors, can give women the courage they require to make financial decisions throughout their lives, whether single and childless, and married with or without children, divorced or widowed. Women must learn basic money management skills and find the expert support they need to make smart choices. It is a skill they will almost certainly need in their lifetime, so it is never too early to start.