Financial Planning for Women: 7 Money Management Tips (2024)

Allocate a budgetBased on your monthly/annual income, draw up a personalized budget based on your goals and the time frames within which you want to achieve them. A good way to start is by following the 50-30-20 rule. On receiving your paycheck every month, allocate 50% to sustenance expenses, 30% to savings and investments, and the final 20% to living life queen-size.

Take charge of fixed expenses

As the term suggests, your fixed expenses aren’t likely to change anytime soon. These include rent/EMI, insurance, etc. Prioritize expenses based on their importance and set a limit in stone. Fixed expenses will eat into the bulk of the funds you allocate for expenses. Prepaying a loan or moving to a relatively cheaper house can help you limit your fixed expenses.

Restrict variable expenses

From the unavoidable travel, phone, and internet services to an impulse shopping spree or a night out with your friends, failing to track variable expenses could lead you into a financial abyss. You do not have to miss out on all the fun, but if you have long-term goals such as buying a house or starting your own business, you must consider being more judicious with your money.

Put technology to use

Today there are many budgeting apps that keep you on point, apps that help you dial down on debt, apps that bring all your investments in place, even apps that invest the spare change left over from your shopping expeditions. Since almost everyone today has access to a smartphone, using technology can be extremely beneficial.

Optimise investments

Jut saving money isn’t enough. You need to make smart investment choices as well. Your investment portfolio must not only beat inflation but also generate enough wealth to allow you to be financially free as early as possible.

With HDFC Bank’s comprehensive banking and investment ‘Savings Max’ account, you can choose the best investment option based on your risk profile. With just a click of a button, you can create a Systematic Investment Plan (SIP).

The ‘Money Maximizer Facility’, allows you to then convert an extra money in the account into a Fixed Deposit, where you can get the best of both world’s - a Savings Account’s liquidity and a Fixed Deposit’s higher interest rate, through the sweep out feature. In the event your Savings Account runs low on funds, the shortfall can be addressed through the sweep-in of funds from Fixed Deposits booked through sweep-out. You also get free ATM transactions, cashback, exclusive loan offers, and insurance benefits.

Plan your tax outgo

Ensure that you maximise benefits from all investment and tax-saving options available to you. FromPublic Provident Fundto Equity Linked Savings Scheme, there’s a product for everyone.If you are already a home owner, you can claim additional deductions.

If you are an entrepreneur, remember to save all your meal, travel, and accommodation bills, which you can claim as expenses and reduce your tax liability.

Plan for the long-termIt is no longer enough for you to think just about the next few months or years. Your investments need to be thought of in such a way that when you should choose to retire, you are able to live comfortably. With access to a Demat Account, you can take control of your own future.