International Women’s Day 2024: 10 important money question females should ask themselves

Whether you are employed, or not, financial planning is key for your long-term security and independence. One of the crucial steps of financial planning is asking the right questions. On that note, let’s delve into 10 important money questions that every woman must ask herself.

By Adhil Shetty, CEO, BankBazaar.com

When it comes to taking care of yourself, there’s no better time than the present. Self-care can take on different forms, one of which is taking care of yourself financially. Whether you are employed, or not, financial planning is key for your long-term security and independence. A recently published white paper titled ‘Financial Planning And Women’ is an excellent reference in this regard. It assesses nine life scenarios that women commonly face, and offers insights to help them navigate and financially prepare for said scenarios.

One of the crucial steps of financial planning is asking the right questions. On that note, let’s delve into 10 important money questions that every woman must ask herself. Answering these questions can arm you with the knowledge you need to make the right financial decisions for yourself and your family.

What Are My financial goals?

Financial goals give direction to your efforts and help ensure that your financial decisions align with a larger purpose. Whether it’s buying a home, starting a business, or saving for a comfortable retirement, clearly defined financial goals are the foundation of robust financial planning and will allow you to make better decisions. Start by listing financial goals and the duration within which you want to achieve them.

Am I Saving Enough For Emergencies?

An emergency fund is a safety net that allows you to tackle unexpected expenses, providing financial stability during challenging times. Your emergency fund should ideally cover 6-12 months’ worth of your living expenses. If you don’t have one yet, start saving a fixed amount each month towards creating one. Choose liquid investments like recurring deposits or a savings account to build this fund so you can access it quickly when needed.

Do I Have Adequate Insurance Coverage?

Women often play crucial roles in family and caregiving. If you have a dependents or are the only breadwinner in your family, getting adequate insurance coverage is essential for you. Purchase a term insurance plan that will provide a lumpsum amount to your dependents in case of your demise, disability, or critical illness. Start off with a small vanilla insurance plan for 10x of your annual salary and keep topping it up over time.

To prepare for medical emergencies, get health insurance over and above what is provided by your or your spouse’s employer. Purchase additional coverage based on your needs. For instance, if you are pregnant, a maternity cover would be an ideal add-on for you to cover for pregnancy related expenses. Ensure that your plan covers women-specific health, such as breast, ovarian, and cervical cancers. Also check the pre-existing conditions and waiting period applicable on your cover.

Have I Invested Enough To Build Wealth?

Investing is a key element in wealth-building. Understand your risk tolerance and explore investment options, such as stocks, bonds, or mutual funds, to reach your goals. Apart from your risk tolerance, assess your financial goals, and the time you need to reach them when choosing investments. Aim for a balanced portfolio comprising equity and debt that enable capital growth while shielding your finance from market risks. If required, consult a financial expert who can help you strategise your investments based on your goals.

Do I Have A Good Credit Score Needed To Take Loans?

A credit score is like a financial report card that indicates your creditworthiness and eligibility to secure credit. Begin by understanding the factors that impact your score, such as timely bill payments, credit utilization, and the length of your credit history. Regularly monitor your credit report for inaccuracies and address them promptly. A credit score of 750 or above enhances your eligibility for loans and chances of receiving favourable loan terms. To build your credit history, start by applying for a secured credit card, or if you need, a secured loan like loan against an FD.

What Is Debt-management Strategy?

Take stock of your debts and create a plan to manage and eliminate them. This includes yours, and your family’s debts, including not just loans, but also credit cards. Prioritize high-interest debts and work towards becoming debt-free to free up resources for wealth-building activities.

How Can I Plan For Retirement Effectively?

Retirement planning is crucial for women, especially considering that they tend to outlive men. Are you saving enough for your golden years? An ideal corpus, as the white paper states, should be 300x your monthly expenses at the time of your retirement. Account for approximately 6% annual inflation when calculating this corpus and start saving towards it as soon as you can afford to.

Have I Discussed Financial Matters With My Loved Ones?

Open communication about finances is crucial, especially in relationships. Are you aware of your family’s income? Have you decided on a will? Discuss financial goals, budgeting, and long-term plans with your partner or family, for when you’re there, and especially when you aren’t, to ensure everyone is on the same page.

Do You have Details About Your Family and Investments?

A large part of financial planning entails being aware of your family’s finances. This includes investments such as FDs, insurance policies, mutual funds, investments for children, retirement plans, stocks, ESOPs, and everything else. During an emergency where you may be required to take crucial financial decisions, this knowledge can be invaluable.

Do You Need Estate Planning?

If you have dependents who may not be able to care for themselves or are too young to do so, you must make arrangements to protect them financially, especially when you aren’t around. Plan your estate, nominate beneficiaries and make a will, individually or jointly with your spouse, to ensure your loved ones will be taken care of.

These questions, though not an exhaustive list, can serve as a good starting point for you to begin taking active steps towards financial planning. For a future that is marked by independence, choice, and security, it is of utmost importance that you prioritise your financial well-being.

By Adhil Shetty, CEO, BankBazaar.com

When it comes to taking care of yourself, there’s no better time than the present. Self-care can take on different forms, one of which is taking care of yourself financially. Whether you are employed, or not, financial planning is key for your long-term security and independence. A recently published white paper titled ‘Financial Planning And Women’ is an excellent reference in this regard. It assesses nine life scenarios that women commonly face, and offers insights to help them navigate and financially prepare for said scenarios.

One of the crucial steps of financial planning is asking the right questions. On that note, let’s delve into 10 important money questions that every woman must ask herself. Answering these questions can arm you with the knowledge you need to make the right financial decisions for yourself and your family.

What Are My financial goals?

Financial goals give direction to your efforts and help ensure that your financial decisions align with a larger purpose. Whether it’s buying a home, starting a business, or saving for a comfortable retirement, clearly defined financial goals are the foundation of robust financial planning and will allow you to make better decisions. Start by listing financial goals and the duration within which you want to achieve them.

Am I Saving Enough For Emergencies?

An emergency fund is a safety net that allows you to tackle unexpected expenses, providing financial stability during challenging times. Your emergency fund should ideally cover 6-12 months’ worth of your living expenses. If you don’t have one yet, start saving a fixed amount each month towards creating one. Choose liquid investments like recurring deposits or a savings account to build this fund so you can access it quickly when needed.

Do I Have Adequate Insurance Coverage?

Women often play crucial roles in family and caregiving. If you have a dependents or are the only breadwinner in your family, getting adequate insurance coverage is essential for you. Purchase a term insurance plan that will provide a lumpsum amount to your dependents in case of your demise, disability, or critical illness. Start off with a small vanilla insurance plan for 10x of your annual salary and keep topping it up over time.

To prepare for medical emergencies, get health insurance over and above what is provided by your or your spouse’s employer. Purchase additional coverage based on your needs. For instance, if you are pregnant, a maternity cover would be an ideal add-on for you to cover for pregnancy related expenses. Ensure that your plan covers women-specific health, such as breast, ovarian, and cervical cancers. Also check the pre-existing conditions and waiting period applicable on your cover.

Have I Invested Enough To Build Wealth?

Investing is a key element in wealth-building. Understand your risk tolerance and explore investment options, such as stocks, bonds, or mutual funds, to reach your goals. Apart from your risk tolerance, assess your financial goals, and the time you need to reach them when choosing investments. Aim for a balanced portfolio comprising equity and debt that enable capital growth while shielding your finance from market risks. If required, consult a financial expert who can help you strategise your investments based on your goals.

Do I Have A Good Credit Score Needed To Take Loans?

A credit score is like a financial report card that indicates your creditworthiness and eligibility to secure credit. Begin by understanding the factors that impact your score, such as timely bill payments, credit utilization, and the length of your credit history. Regularly monitor your credit report for inaccuracies and address them promptly. A credit score of 750 or above enhances your eligibility for loans and chances of receiving favourable loan terms. To build your credit history, start by applying for a secured credit card, or if you need, a secured loan like loan against an FD.

What Is Debt-management Strategy?

Take stock of your debts and create a plan to manage and eliminate them. This includes yours, and your family’s debts, including not just loans, but also credit cards. Prioritize high-interest debts and work towards becoming debt-free to free up resources for wealth-building activities.

How Can I Plan For Retirement Effectively?

Retirement planning is crucial for women, especially considering that they tend to outlive men. Are you saving enough for your golden years? An ideal corpus, as the white paper states, should be 300x your monthly expenses at the time of your retirement. Account for approximately 6% annual inflation when calculating this corpus and start saving towards it as soon as you can afford to.

Have I Discussed Financial Matters With My Loved Ones?

Open communication about finances is crucial, especially in relationships. Are you aware of your family’s income? Have you decided on a will? Discuss financial goals, budgeting, and long-term plans with your partner or family, for when you’re there, and especially when you aren’t, to ensure everyone is on the same page.

Do You have Details About Your Family and Investments?

A large part of financial planning entails being aware of your family’s finances. This includes investments such as FDs, insurance policies, mutual funds, investments for children, retirement plans, stocks, ESOPs, and everything else. During an emergency where you may be required to take crucial financial decisions, this knowledge can be invaluable.

Do You Need Estate Planning?

If you have dependents who may not be able to care for themselves or are too young to do so, you must make arrangements to protect them financially, especially when you aren’t around. Plan your estate, nominate beneficiaries and make a will, individually or jointly with your spouse, to ensure your loved ones will be taken care of.

These questions, though not an exhaustive list, can serve as a good starting point for you to begin taking active steps towards financial planning. For a future that is marked by independence, choice, and security, it is of utmost importance that you prioritise your financial well-being.