05 June 2017

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Personal Finance for Housewives - How to Have Financial Freedom

finance-for-housewives
Personal financial planning or money management is not limited to any group. This can be practiced by anybody including children, school and college students, teenagers, housewives, married couples or anyone who want to get control over their money. It is proved that women can manage their finance better than anyone if educated.

In this article, we are discussing 20 magic personal finance and money management ideas for housewives to become more practical and serious when dealing with personal finance, money management and investing. Please read completely and let me know if you found anything missing in this article or give value if add so.

1. Educate Self

Start educating yourself about personal finance and money management. Having decent knowledge on how personal financial planning works would help you to avoid critical errors. There are several methods to get enough wisdom on money management. There are lots of books on personal finance available and also can find lots of materials in the net to educate yourself well.

2. Set Your Financial Goals

The best way to plan your finance is through setting financial goals. For example, if you want to buy a house in five years, this may be the most important goal that you have right now. It would help you to focus on possible channels to secure money for that goal.

3. Know the Core of Saving

"Spend less than what you earn". Build good money spending habits put you to the comfort zone. Searching in this blog may gives you bunch of nice articles on how to save money from possible areas.

Here are some idea on saving money:

1.    Define and follow budget
2.    Purchase food items such as vegetables and fruits only its respective season
3.    Borrow/rental and return any items than purchasing it for short use
4.    Never purchase items just because you ‘want’ that
5.    Electronics items are best to purchase after few months of its original launch.
6.    Items using in season such as cooler, heater etc.. should be purchased well advance before the season arrives
7.    Never purchase items with borrowed money
8.    Think to buy the items after a or few days. You may sometime change your mind and leave that purchase interest.
9.    Items with resale value are best to select and buy.
10.  Purchasing any items that you already have need more attention on the durability.
11. There are better items than branded items in the market. Think to purchase that.

4. Make Your Own Emergency Fund

Emergency fund meant to protect you from unexpected money requirements. Thus the importance of having an emergency fund is mandatory. Here are some beautiful advantages of having your own emergency fund:

1.   You are able to financially back away from the edge of a cliff
2.    Helps you prepare for life’s unpredictability
3.    The emergency fund saves you money
4.    Emergency fund protects your investments from stopping it prematurely
5.    An emergency fund gives you the chance to be involved in other people’s emergencies
6.    Emergency fund also stops you from borrowing high interest loans.
7.    Psychologically, you will feel safe and can lead a peaceful and happy life.

5. Ensure Your Involvements to Day-to-day Money Planning 

Have right authority to take money management decisions at home. An average person anyway makes between 1 and 6 financial decisions a day. That's a lot of financial thinking. Ensure you are playing fair part on such financial decisions to understand better on what is happening.

6. Don't Take the Responsibility of the Debts

Regardless of what relation you have with a person, never take the responsibility of their debt than just morally supporting them to come out of debt. Never ever be a guarantor for anyone who taking loan from banks or from any financial institutions. Its a killer mistake.

7. Always Set Aside a Part of Earning as Your Own

Never contribute your entire earnings to the family fund or to the hand of anyone. This can be utilized as an emergency fund as said earlier. This would also help you to make necessary investments and other similar future focused investing decisions.

8. Have Your Budget Always in Place

Think and construct a right budget and be disciplined when dealing with it. You can read this well described article how to create a family budget to understand the process and other details very well. Do necessary changes and make it as your own.

Here are some of the major advantages of having your own budget.

-    Budgeting gives you control over your money to a great extent.
-    Keeps you focused on your financial goals
-    Makes you aware what is going on with your money
-    Helps you organize your spending and savings
-    Makes you decide things in advance
-    Enables you to save for expected and unexpected costs
-    Provides you with an early warning for potential financial problems
-    Helps you determine if you can take debt and how much
-    Enables you to produce extra money by avoiding late fees, penalties etc.
-    Budgeting also makes you to take control over your debts
-    Quality of your life and financial status would improve to great extend

9. Spend Some Time Each Day

Women should identify and spend some time in each day to make money management decisions. If you don't allocate time to manage your money, you won't have any money to manage.

10. Learn and Practice Money Saving Tips

With the help of internet, you can collect money management tips and practice the most relevant tips to you. This would let you save lots of money slowly but steadily. You can read my post "Master Money Saving Tips" go get exact idea on what it meant.

11. Use Lend Your Personal Items

Your car is a best example for it. Others never care like you and generally pay little attention whenever uses any items from others. So it is better to not give or lend your items to anyone.

12. Never Miss Investing Opportunities

Investing do not required huge money ready in hand but can start as little as possible. Investing should have right goals and time frame. This would help to select the right investment instrument ti achieve  that goal.

Here are Some Advantages of Investing:

-    You can start investing with less possible amounts
-    You can have a mix of investment instruments suit to your various goals
-    You can select investment candidates based on your age, risk tolerance
-    You can take the huge benefit from the power of compounding interest
-    You will be a step ahead from everyone on financial independence
-    You will get benefited from tax free advantages such as dividends, tax free gains etc.

13. Be Your Own Boss

Advises available free from everywhere. Each and every person around us has advise and suggestions about money and its management. If you have money, such people always hang around you with lots of advises and suggestions. You can certainly listen to others, but final decision should be always yours on your money. Remember to not take advises and suggestions blindly from others, but be careful to choose the best and avoid the rest.

14. Don't Lend Money

Never be available for anyone to approach you easily to lend money. Should have the gut to say a 'no' if someone approaches to ask money from you unless it is necessary. Have a habit of never lend money and never borrow money.

15. Never Co-sign With Any Documents.

For an example, if a friend, relative or a family member approaches you to request co-sign with them for a loan, fearlessly say a big 'no' to them. If not do so, when he default the loan repayment, you would be responsible for that. Do not take unnecessary headaches. Remember, being a social animal you should hold individualism at least in your personal finance matters to avoid issues.

16. Never Fall in Debt.

Control your credit card use for purchasing and pay any bills in time to avoid money lose buy penalties. If you are already in debt, prefer to get out of debt first. When having debt, no financial planning would work for you. Read my article Simple Guide to Become Debt free for more details.

17. Always Consider Bargain

Study shows women are 3 times better than men to bargain things. Their interested areas like shopping etc.. highly require bargaining ability to save lots of money than who not willing to bargain but pay what the shop owners ask.

18. Be a Mentor to Others.

Educate others in the family about money management, especially your children. Sharing experience and educating others would enhance your skills and helpful to get more knowledge.

19. Generate Additional Income.

Identify the possibilities of generating additional income using your free time. Play homes, beauty parlor, home tuition are best suitable streams for women to make plenty of money.

Below are two well written articles in this blog that give you better ideas on:

-    Active passive income streams generation ideas
-    Home Business Ideas for Housewives


20. Learn From Mistakes.

Mistakes can happen at the beginning. It is so common. However, don't let them hobble you.

Conclusion

The Internet has created an incredible resource to get information 24 hours a day, 7 days a week. Use it. Consider speaking with a professional financial planner. Check out good and reputed Web sites to take advantage of their financial tools and calculators which would help you to understand your present status and plan better for future.

Hmm... some of us have even more better tips for our women. Don't forget to those tips here as your classic comments!