Gone are the days when Indian men were the primary bread winners and women cooked and tended to their children. Women in India are taking big strides financially and contributing significantly to family finances.
However, there are some stereotypes that still remain, and some fundamental issues that women face with money. Here’s a look at some of them.
- Mixing Money With Relationships
Very often women are unable to separate money from relationships, i.e. they are more likely to lend money to friends or loved ones on the basis of relationships and bear the consequences if there is an issue with repayment.
If faced with such a situation, first see if you can help out without involving money – help with networking, babysitting etc. Remember that it is not good sense to sacrifice your future by putting others’ needs before yours.
- Keeping up with the Joneses
Social pressure sometimes can be a very detrimental factor when it comes to finances. What someone else has becomes a dictating factor and you have to have it.
When buying group gifts, ensure that you don’t go overboard with the spending simply because everyone else is contributing a bigger amount that you can’t afford.
- Lack of Negotiation Skills
Negotiation is a word which frightens most women. Whether it is negotiating a good deal on a home, or a salary raise with a boss – women prefer not to get into it.
This becomes a crucial factor in building personal finances. Women don’t make as much money as men simply because they don’t ask for it.
- Emotional Spending
Emotional spending or Retail Therapy as it is more commonly known is a huge factor when it comes to money concerns women face.
Following an emotional disturbance, women love to soothe themselves by buying expensive clothes or shoes or anything that they’ve had their eyes on for a long time. Sometimes impulsive buys prove very expensive and women run the risk of huge credit card bills.
Remember that these “highs” are temporary and you need to pay your credit card bills at the end of the month, sometimes a lot higher than you anticipated. Also evaluate the items in your shopping cart before you hit the checkout desk. Which of those do you need?
- Lack of Confidence in Handling Money
Many women admit that they lack the confidence when it comes to financial planning and investments. Traditionally men have saved for the future and taken big investment decisions while women have handled everyday finances and running of the household.
Women say that they don’t find it enjoyable and sometimes lack the confidence to get into financial planning and investing for the future. It is very important to get over this mind block and start by educating yourself about various financial instruments. Consult a financial advisor along with your spouse.
- Avoid Big Risks In Investments
Women also prefer to avoid big risks in investments. Look beyond just paying your bills and focus on investing for the future. Set bigger goals and plan effectively to achieve them.
Some women make the mistake of being completely financially dependent on their spouse, and this can lead to problems at some point in time. Learn to take financial decisions and manage your money.
Handle your savings account on your own and don’t make the mistake of having only a joint account, and no account of your own. You need to realize that this is not a matter of trust, but of being able to handle your money independently and in the way you think prudently.