3 Things Every Housewife Should Do for a Life with No 'Financial-Worries'

Shikha Bhatnagar - Executive Vice President, Private Banking, Bajaj Capital.


Rightly homemakers have been tagged as the backbones of their family. Each and every family member is dependent on her. If you are a housewife, then you should take pride in being a super woman, who makes others life smooth, organized and worry-free by taking care of their vital needs like clothing, food, personal essentials etc. You are the best when it comes to home management, time management, relationship management, people management, task management and what not. But what about managing your financial security? 


Have you ever thought of how you will financially secure your future or your family's future? In India, even today, the majority of housewives are either not making any income or making very less income through some small home-based jobs. Because they are not contributing to the family's finances, thus they hardly get involved in financial matters like investments, savings, property etc. Earning an income is actually not a mandate but homemakers must become financially aware so that they have a financially secured future. It's not just the responsibility of the men in house to secure your future, you too as today's women must take that initiative. You need not be earning for that matter but at least you should do the following three things to live a Life with 'No Financial-Worries'. These will not just help you but also enhance the financial prosperity of your family. 


1. Protect Your Growing Wealth 

In very simple terms, wealth protection means preventing your savings and investments from unwanted early redemption. Investments are done with a goal and there is always a maturity date, but life uncertainties like sudden hospitalization, demise etc., within the family often force people to redeem their investments before maturity. This disturbs not just the financial goal as well as the overall stability of the family. You can keep your family's wealth protected by giving it the cover of Insurance. The worst situation arises when the earning member of the family faces any trouble and the whole burden comes to non-earning members of the family. It is advisable that each earning member of a family should have a Medi-claim and Term Insurance so that his/her dependents can remain financially secured even in face of adversities. Second important thing that needs to be taken care is loan liability. Nowadays, a loan is very common as every second earning individual opts for loans such as Home Loan, Personal Loan or Car loan. Apart from Medi Claim and Term Insurance, you should motivate your husbands to avail Loan Insurance on any loan they have taken. Nowadays, loan insurance is offered for a home loan, personal loan and auto loans as well. Loan Insurance is a form of payment protection insurance. It can help you protect your monthly loan payments if earning member of your family becomes unemployed or face any accident or sickness.
2. Don't Just 'Save' But Start 'Investing' 
Since long, housewives have showcased their talent of saving even out of a tight home budget. They are blessed with money management skills. They know how to save bit by bit and make it large. But now it's time to take a step ahead. You already know how to save, but now you must learn where to save. Instead of saving in your piggy-banks or home lockers, you can switch to a much more rewarding thing, called Systematic Investment Plan (SIP). SIP is a route to invest in mutual funds. You just need to invest an amount at a regular interval (mostly monthly) and benefit from market-linked returns. If you save Rs.5000 per month in your piggy bank for 20 years, you will accumulate only Rs. 12 Lacs but if you invest the same Rs. 5000 through SIP for 20 years and able to get 15% per annum returns on investment (assumed rate of return), then you may be able to accumulate approx Rs. 75 lacs. You can use this sum of money in which ever way you want. Don't worry that SIP will block your money for 20 years, you can redeem your equity investments at any point of time. The redemption process is also very simple and the amount gets credited to the bank account in 3 working days only. If you are thinking that mutual fund is not your cup of coffee, then you must know that SIP makes mutual fund investment as easy as a cakewalk. With SIP, there is no need to track the market highs and lows, no dilemma regarding when to go in and when to exit. SIP has many other benefits. To understand, you can read or can get in contact with professional investment service providers.
3. Get Acquainted With Family's Financial Documents
Whether it is property papers or insurance papers, take the initiative to have knowledge of every detail. You must know where are the papers, its intricacies and should maintain a document file with the copies of all the essentials documents related to insurance, investments, property etc., Having access to these important documents will keep you prepared for the time of need. At least, you should have the following details/ documents at your easy access. 
1. Medi Claim Card and Policy Number 
2. Details of investments which can be redeemed within few days in case of any need/emergency – Mutual Funds, Recurring Deposit, Fixed Deposit etc.
3. Other Insurance Policy papers (Term Insurance and Loan Insurance) and procedures to follow in case of any uncertainty.
4. Documentation & procedures of redemption of long term investments schemes like Employee Provident fund (EPF), Public Provident Fund (PPF), National Pension System (NPS) and other pension schemes. 
5. Property Papers and other important documents handy. 
Research says that women tend to live longer than men and because of which they need to create a longer safety net for themselves as compared to men. At the same time, many women choose to take a break from their careers by giving priority to their children and families. Amidst all these priorities, women must not forget themselves and should do their best to ensure their financial security. So, start your journey to financial independence. Have a financial plan for your present and future. Whatever little you are saving, give it a lift by adopting the route of investment; be concerned about your and your kid's insurance coverage; concentrate on your family's wealth protection so that no adversity can swipe it out; keep yourself financially aware and participate in your family's financial planning as well.


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