Women and money: Planning is a must

New Delhi: Our society has seen a lot, from womens’ liberation to understanding independence to recognition of single women, call it what you like.

With increasing exposure and integration with the world, our society and the role women play in our society is undergoing rapid transition.

The next logical step is financial independence and without which all the above stand nullified.

In this article you will find the many issues that women face, being addressed and logical steps to managing them.

Just like the fundamental differences between men and women financial planning for women differs significantly.

I state, "Financial Planning is important for men but is mandatory for women."

Let's understand why?

Women today play a much more dynamic role in our society. They believe in taking more control of their life. Women are taking brave and independent decisions.

Though the priority is given to career she does not compromise on responsibilities on the home front.

The woman of today exercises her choice such as delaying marriage, providing more for her parents etc.

Even married women today want to remain independent in many decisions.

Needless to say all this also has financial implications and it is therefore critical that their financial environment is aligned in a manner more suitable to themselves.

What is the immediate action, then?

Take another decision; exercise another choice, the choice of dominating and controlling your financial world.

Here are three steps to help you kick-start this process.

Step 1: Count your money - What all do you really have in your name?

1.Make a list of the equity shares & mutual funds with their current value.

2.Prepare list of bonds, fixed deposits and other investments you have.

3.What is the value of real estate properties you own?

4.If you earn – from business or salary – What is the amount you have left annually after contributing for home expenses?

5.If married – prepare a list of what you got from your parents on marriage – this is your "Streedhan".

Step 2: Know what is available

Yes, it sounds like being nosy, but it concerns you and you ought to be nosy.

It is very important to find out what you own and what is available to you.

Honestly… do not depend on anyone and do not forget the "What if" question – What if you are on your own completely some day?

Whether you like it or not you face that risk. Know what assets in your family you are likely to be a part of.

It's of importance to you and your children (or future children if you don’t have any now).

God forbid if something were to happen to your husband or father do you know what insurance funds will be available, what investments can be liquidated which cannot be, what pension is likely to come in to support the family etc.

Step 3: Be a part of all decisions

It's nice to have the comfort of leaving everything to your husband or parent as the case may be, but don’t forget that, that is all you have and you ought to know what is happening with your money.

It's very simple – If you have money you ought to know what your money is doing. It’s just like if you want to travel by public transport you ought to know where the bus is going.

Please note I am not suggesting that you should not trust you family members with your money nor am I against family values, all I am saying that you got to be a part of all financial decisions around you, more so if it concerns your hard earned money.

Kartik Jhaveri, an expert at Financial Planning, is a Certified Financial Planner and a Chartered Wealth Manager.