The freedom fund is an important financial tool that gives you the power to become financial freedom. It is a fund for emergencies, saved from your salary after taking care of all your financial obligations.
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With the change in time, the position of housewives has changed for good in society. In fact, these days, being a housewife is also considered to be a profession and is officially called a homemaker. The days when only the male members of the family were expected to look after the household expenses is long gone past.
Change in time, as well as inflation, are the factors that disturb the household budgets big time. The women, whether working or not, have not only shifted their focus in managing finances but have also excelled in it.
Uncertainty is an inevitable part of any economy. Hence, it is essential for both husband and wife to maintain the financial security of their family. Earlier, the traditional way of savings was in the containers, which is now taken over by the savings accounts and investment tools, which can multiply the funds.
Although a homemaker or a housewife is not an actual earning member of the family, she plays an important role in running the finances of her house. Traditionally, people used to believe that women and finances do not go well together because they do not have sufficient knowledge about financing.
The society has witnessed a considerable shift from such a misogynist belief because housewives these days are well-educated as well as aware of the changes around them. This makes them well-equipped for dealing with the financial challenges of any sort.
For instance, there is a husband who is the sole breadwinner for his family and the wife is a homemaker and keeps away from all financial decisions. In the case of the unfortunate death of the husband, the wife will be left clueless as she is not aware of the financial conditions of the household.
However, if she had been interested in the decision-making process of her household finances, things would have been easier for her. Ideally, both husband and wife must be equal participants for taking care of the finances and all the related decisions must be taken as a team.
Now, that we know how important financial planning for housewives is, let us discuss a few tips for the same.
In case you have already analyzed the cash flow, then it is time to control these wherever there is a possibility. For instance, if the monthly expenditure on electricity is AED 1,000, then you need to review why it is so high, what are the resources that are being used, and how to control this expense. So, if you have been using your washing machine daily, then you can reduce it to 3-4 days a week.
This is will help in cutting down your electricity bill by a considerable amount. Similarly, keep a check on the monthly expenditure incurred on shopping, dining, and more.
If you are a shopaholic, look out for sale and discounts. If you are a foodie, well you can control your diet, it will be good for your health and at the same time help you in maintaining your expenses. If you love watching movies, try going on the weekdays itself, the cost of tickets is lower than that on the weekend.
Are you dependent upon your husband when it comes to finances? If yes, then it is time you start paying attention to financial planning in Dubai. It will help you at the time of emergencies. For instance, if you wish to save for the future of your children, then you can open an account for the same. It is also important to arrange for funds to support your old age.
Traditionally, the budget for groceries and other household stuff was planned out by the homemaker while the financial planning for credit card bills, loans (personal, car, home, etc.), house rent, telephone bills is taken care of by the husband.
However, looking at the current situations, it is important for housewives or homemakers to learn to manage these finances too. Once you are through with this, you can get back to analyzing the household earning and expenses. This will help you in understanding what all things involve more spending and how to control it.
And, for those who haven’t done this before, don’t worry, it is not some kind of rocket science. You can easily manage to do it on your own or with a little help from your husband.
Do not refrain from saving. Always keep a lookout for things that will help you save money. For instance, if you do not have any bank account, then open a simple savings account, preferring a zero balance account.
Get your account opened and enjoy benefits from it because they help you save money while providing you with financial security too.
There is no denying that saving money is very important for your financial health; however, the facts state that investments are equally essential. If you only save every month, how would you be able to grow your money for beating inflation?
Do not leave your money idle in a bank account or any other place for a long duration. Invest your funds in a recurring or fixed deposit. Even if the investment rises to AED 11,000 from AED 10,000, it is good as it is the safest form of investment. And anyway, something is always better than nothing at all.
As a matter of fact, a few years later, things will change and there will be a rise in the expenditure. For example, expenses for the education and wedding of your kids will increase. Therefore, it is suggested that you think long-term and find out methods to create funds for the same.
You must have to gain knowledge of the available financial products in the market for this purpose. These financial products will help you in meeting your financial objectives. That’s how you can become a helping hand for the breadwinner in your family.
If you are educated and qualified, and still cannot extend a helping hand to your partner because of household responsibilities like bringing up your children, you can find ways of earning money that too from the comfort of your home.
You can look for opportunities to work as a freelancer if you are a skilled graphic designer, writer, or offer online training on your skills. You will come across many employers who are willing to pay talented individuals who can work from home. This is because it helps the former to cut down on operating expenses of the company and the latter agrees to work at low incomes.
The bottom line
Financial planning has nothing to do with gender or employment. Even if you are a housewife, you can easily help your husband in managing the household expenses and securing the future of the family.
These seven tips will help you in wealth enhancement and protection, decreasing the number of obstacles you will have to face.