Smart financial moves for middle-aged women

Here’s looking at simple financial tips for women over 35 years old but who are still years away from retirement.

Women in India are increasingly becoming financially independent as they join the workforce or start their own businesses. It is tough being a woman who juggles a home and a career, but women are able to handle their responsibilities with aplomb. However, there is a distinct lack of financial education for women, especially when they cross the age of 40 years.

This is the age to be financially settled and planning for a peaceful retirement. But many women are unable to manage their income, and they end up spending it all on their home without setting anything aside for themselves. Consider these 7 financial moves that middle-aged women can make for a protected future:

1 Spend what you earn. Many women are tempted to splurge on expensive clothes, bags and cosmetics. While an occasional splurge is fine, regularly spending money on expensive shopping is a drain on the resources. It becomes a habit to spend even that money that one does not have, such as frequently using a credit card. Living within your means will help you save money and keep your finances healthy.

2 Hire a financial expert to manage your investments. You might have savings, or you may be a thrifty spender who is careful with her salary. Instead of just letting your money sit idle in the bank, why not make good investments in mutual funds or other market-linked options? You can invest every month, as much as you wish to, to create a good financial position for your future self.

3 You must know about your spouse’s finances. A surprisingly high number of women have no idea about the state of their spouse’s finances. Women must be aware of how much their spouses spend and save, if they allocate enough money for investments, and who the nominees in their investments are. In turn, women must make their spouses privy to their own financial information as well. This knowledge is important when the unthinkable happens and the

4 Upgrade your lifestyle. Your standard of living must proportionately improve every time you start making more money. This is not about ‘Keeping up with the Joneses’ but about projecting a certain image about oneself. Far too many women give up investing in their appearance, buying expensive clothes and jewellery and improving their home life after they cross the age of 35 years. In fact, middle age is a time for a lot of experimentation because you have more confidence about your body and social standing.

5 Invest in learning new skills. It is never too late to learn new things, and your age group certainly needs to be mentally sharp and physically active. This is the age when your children are well settled into their academic pursuits and your spouse is busy with their professional life. It is up to you to keep yourself motivated about life, by learning new things that add to your skill set. Learn the basics of trading, or enrol for an intensive Zumba class. You could take up swimming, or join a club to meet other women your age.

6 Get property in your name. Making investments on the market is important, and so is plugging your money in appreciating assets like real estate. It is quite simple for working women to invest in property today — they get lower rate of interest apart from easy financing options. Having a house to your name gives immense confidence for the future, because it protects you in many ways.

7 Buy life insurance. Your life is crucial to the smooth working of your home. Anything that impacts your wellbeing has a cascading effect on the wellbeing of your house. The best way to protect yourself and your loved against the vagaries of fate is to invest in a traditional life insurance plan. The traditional life insurance plan ensures that your family is cared for even in your absence.