Managing Finances Independently as Women

Managing Finances Independently as WomenPolicybazaarAverage Rating / 5 ( reviews)
192 Views

Women in the 21st century have surpassed all barriers and taken huge treads in almost every industry. Unlike the olden times when women were supposed to manage houses, modern-day women have made the transition of handling businesses from households. Be it science, technology, healthcare, politics, sports, defense, women have made their way everywhere competing equally and proving themselves.

Even after all of the progress that the 21st-century women have made, there is one field that is largely male-dominated finance management in UAE. According to a survey by a popular finance company in the UAE indicated that only 42% of women are poised about their financial decisions and consider themselves financially independent.

The lack of confidence is a result of the societal structure because women have been less involved in finance management in UAE when compared to men. Regardless, of the reason, women in today’s era are quite independent and more empowered than ever before which makes it important for them to manage their finances as well. In order to ensure women can more actively indulge themselves in finance management in UAE, we’ve come up with some of the most important tips.

Make Budgeting Your Best Friend

When it comes to managing finances independently most of us do not recognize the role of budgeting especially in the case of young and single men and women. Young women living independently in metro cities never fall short of interesting and fun activities, which basically means that we usually forget analyzing our financial statements and spending habits.

In order to effectively carry out finance management in UAE, budgeting is very important. A well-structured budget plan that helps you to track your expenses and income is the first step towards a financially independent lifestyle. Budgeting helps you to assess your spending habits which provide the scope of recognizing places where one can cut down and save some extra money.

Plan for Future: Retirement Planning

When we hear about retirement planning most of us overlook the idea considering it’s too early. Especially at the beginning of our economic productivity most of us are so engrossed in fulfilling our dreams and desires that we think of retirement planning. The right approach to a more planned and financially structured life is early planning for different phases of life.

Finance management in UAE revolves around efficient and wise planning for different phases of life so that one has a corpus in the twilight years of their lives. Early planning followed by finance management in the UAE helps women to spread their savings over a longer period which eventually helps them to achieve their goals at an accelerated pace.

Safeguard your Life: Get Insurance

Usually, women do not consider getting life insurance for themselves as this counts as the men’s job. If you have elderly parents’ dependent on you for their financial needs or you have any debt in the form of mortgage, student loan, car loan, etc. you should look forward to getting an insurance plan.

Life insurance plans are an integral component of finance management in UAE that provides a blanket of financial protection. According to a simple thumb rule the earlier you buy insurance the lesser you’ll have to pay. Age is one of the most crucial deciding factors that come into picture while deciding the premium of life insurance plans in the UAE.

Focus on your Credit Report

The governing body that is responsible for evaluating the credit report of an individual is called Al Etihad Credit Bureau. With the ease of accessibility banks and financial institutions can now easily assess your credit report. It might not appear to be a very big deal missing out on a credit card payment however, even one missed payment will bring your credit score down.

Banks and financial institutions determine the creditworthiness of an individual based on their credit score. Therefore, as an important step towards finance management in UAE, it is important to keep a track of debts and their repayment to maintain a healthy credit score.

Build a Corpus: Save and Invest

In order to achieve financial independence via finance management in UAE one needs to save followed by investing the capital. Saving periodically helps to counter strokes of uncertainties while investing allows one to build a corpus for attaining comfort.

Women should start saving right from the beginning of their economic productivity and once their saving reaches a considerable amount they should start investing. While investing an important point to be kept in consideration is upholding diversity in the investment portfolio. Diversity in investment and finance management in UAE reduces the associated degree of risk.

Set-up Realistic Goals

The primary motive of finance management in UAE is to help women achieve their goals within a given frame of time. Long term financial goals go through the trail of finance management that ends up to a brighter and secure future. By convention, women usually tend to sacrifice their desires, ambitions, dreams, and even needs by placing themselves at the bottom of priority lists.

In order to set-up goals and achieve them, it is important to be specific. Your goals and missions should be realistic with a dead-line. Once you are done setting up your goals the next step is prioritizing them within time frames. Setting up goals with proper deadlines will give a sense of responsibility which will make you work harder and more efficiently.

Financial Education: Consulting Financial Advisor

An important step towards finance management in UAE is educating yourself in every aspect of economics and managing finances. You can choose books, online platforms, podcasts, videos, documentaries, or any other source that you prefer. Regardless of your motive, it is imperative to educate yourself in terms of financial management to effectively manage money.

Another method of gaining financial knowledge is consulting a financial advisor. These professional advisors specialize in finance management and offer a variety of services right from consultation to debt consolidation based on the requirement of the client. You can contact and consult a financial; advisor who can help you understand your current financial situation and the various steps you need to take for a better grip over your finances.

Discuss with your Family

Financial independence and finance management in UAE refer to handling personal economics without the interference of anybody else. However, it does not mean that you cannot consult anybody else. If you are married you can consult your husband or in case you are unmarried, you can consult your father for better insight into nuances of finance management along with important tips and tricks that will provide better results.

In a Nutshell

As an independent woman, it is vital to understand your needs and making small changes in strategies to adapt effectively at every stage of life. Gradually with increasing income, one should make the transition of securing the future and building a corpus.

Whether you’re single, married, widowed, divorced, or engaged it is always your responsibility to safeguard your future by your own efforts instead of relying on husbands, fathers, etc. Start off slow by saving small amounts and later on investing them in the right direction and gradually increase your pace of investing for a brighter and safer future.

How helpful was this page?
You May Like