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YOU CAN DO IT!

Here’s how you take control of your money

Women are no longer contained within the four walls of their house. You study. You work. You’re free. It’s now time to take control of your money too!

MY RELATIONSHIP WITH MONEY CHANGED AFTER I LOST MY HUSBANDWhen life hits you hard, it doesn’t just affect you emotionally. It also affects your money. THE PASTAt 24, I got married happily and moved to the US. I had no income, but I did not bother about money. My husband earned enough to take care of us.

THE EMERGENCY CALLNearly two months before our 9th anniversary, my 39-year-old husband suffered a heart attack and collapsed at work. After 36 hours, the doctors gave up.

I returned to India with my 7-year-old son.LIFE BACK IN INDIAI had so many questions: How do I pay my house rent, other bills? Who would take care of my child’s school fees? Do I even have a bank account; how does it work?Thankfully, my husband’s savings worth ` 10 lakh helped us initially.

MY RELATIONSHIP WITH MONEYIt’s been 5 years. It took a year to limp to normalcy. Over time, I ensured I understood all aspects of money. Today, I save 10% of my salary for an Emergency Fund. And I’ve insured myself to secure my child. I invest about 20-30% of my salary in a mix of Mutual Funds and Bank Deposits to secure our future.

1 KNOW YOUR BANK ACCOUNT

Many women let their husbands, brothers or sons handle their bank account. No!

Know where your money goes and how the account is used.2 OPEN A SECOND SAVINGS ACCOUNTNow open another account, either with

the same bank or another. Ensure there’s no debit or credit card attached to it.Or you may spend this amount too.3 SET ASIDE A PORTIONTransfer 20-50% of your salary after every pay-day to the other ‘investment’ account. Connect all your Mutual Fund and Deposit accounts to this. 4 KNOW WHAT YOU WANTNow make a list of everything you need or want

in life. Assign a number and time period

to each. This includes small dreams like ‘buy a Gucci’. 5 CALCULATE BACKWARDS

Use an online investment calculator. Input the time and goal amount. Add a return percentage

(8-14%). You will get your monthly investment.

6 START WITH SMALL STEPS

Start with whatever little you have. You can

increase it over time along with your salary.

Also, try dummy investments game before you deep-dive.7 ANSWER TO

NOBODYYou can do it. All by

yourself. Don’t follow advice

blindly. It could not help you achieve

much in life. For example, the elderly could suggest poor, low-risk options.

8 IMPROVE YOUR HABITSMoney habits take time. Years, even. But start somewhere and keep honing your habits and skills. Improve and increase your investments overtime. 9 DON’T FORGET YOUR TAXESAs your salary rises, so may your Taxes. So, set aside a portion of your savings in Tax-saving investments like ELSS Funds to cut down your Tax.*This content was created exclusively for UTI Swatantra

For more details, follow us on Twitter #swatantra; Email queries or suggestions: info@beswatantra.com

Please mention ‘Swatantra in TT’ in subject line. For more such fi nancial advice, Scan the QR code

or head to our website: http://www.beswatantra.com/for-women

HOW I WILL PAY FOR MY WEDDING, CHILDCARE

Writer’s name withheld for privacy.

You never know what’s going to happen in the future. So, take over your money matters TODAY.

MESSAGE TO ALL WOMEN

I am a 25-year-old woman. I don’t plan to get married in the next 3 years, at least. But I started investing for my wedding and future child already. Here’s why:THE NEED

Wedding costs in Mumbai: ` 15 lakh to ` 20 lakh (easily)Medical costs: ` 1 lakh (apprx.)School fees: ` 2-5 lakh/yearTotal school cost: ` 60 lakhCollege fees: ` 20 lakh (apprx.)My current salary: ` 6 lakh /yearBottomline: I need savings. CANNOT BORROW

My parents have retired. They aren’t ailing (thank God!). I’d prefer if they use their money for leisure. Also, some day, when I have my own child, I shouldn’t have to rely on my parents for support. So, I started investing right from my fi rst job.WHAT I DID Get basics right: First, I got my health and life insured. Save enough Taxes: It isa very important goal. So,I invest ` 2 lakh every year in Equity-Linked Savings Schemes (ELSS), Public Provident Fund (PPF) and National Pension Scheme (NPS). Goal-setting: Then, I set my goals - wedding (` 20 lakh), child’s expenses (` 1 crore) and retirement (` 10 crore).

MONTHLY INVESTMENTSFOR THE WEDDING

Monthly SIP: ` 10,000, increased 30% every yearExpected returns: 12%Time-period: 5 yearsWhere: Mix of Balanced and Equity Funds, Stocks and FDsFinal corpus: ` 13 lakh. I’ll use the past ELSS investments and salary to fund the balance.

FOR FUTURE CHILDPre-natal and delivery charges: To be covered by Health Insurance.School fees: Monthly SIP of ` 5,000, to be increased by10% every year until the wedding. After the wedding,I will double my SIP annually.Within 10 years, I’d have at least ` 15 lakh - ` 20 lakh.The investments can continue until my child becomes financially independent. FOR RETIREMENT

Monthly SIP: ` 5,000 (after wedding to increase 10% every year).Time-period: 30 yearsReturn expected: 12%Where: Mix of Equity Funds and StocksFinal corpus: ` 4 crore.The ELSS and PPF investments can fund the remaining amount.

Sandhya Kannan,a fi nancial writer from Mumbai

DELEGATING RESPONSIBILITY

Women tend to leave fi nancial planning to the men around them. But they need to cope in the absence of men and control their own fi nances. A wealth advisor can guide them about investments right from the beginning.

NOT SAVING ENOUGH

On an average, women have less resource than men. Women should save more by investing systematically and regularly. This brings

the added advantage of compounding.

NOT TAKING INTEREST IN

FINANCE Women avoid fi nancial jargon. They do not get into the calculations and Tax considerations. They ignore the complexities,

and let others manage their funds.

NOT ASKING QUESTIONS

Women must ask their advisor for clear explanations. They must consider all implications before investing in fi nancial instruments.

BEING RISK-AVERSE

Women prefer investing conservatively. Instead, focus on higher returns. Consider capital protection, Tax-free returns, and easy liquidity. Aim for higher returns than Fixed Deposits, returns that beat infl ation.

Mutual Funds are a good option. For the best benefi ts, look at a longer horizon. Diversify the portfolio. Opt for Tax-free dividends, park short-term money, and avail indexation benefi ts.

MISTAKES THAT MOST WOMEN MAKE WITH THEIR MONEY

Proprietor Will Asset Management Inn

*This content was created exclusively for UTI Swatantra

*This content was created exclusively for UTI Swatantra

*This content was created exclusively for UTI Swatantra

TANUSRI DAS