How to manage finance independently?

People often have a misconception that women can’t manage their finances, taxes, and investments whereas it is not true. Women manage their money wisely, and they take more accurate decisions related to money.

Tips on how women manage their finances:

Set a budget and track all the expenditure a bill payment smartly:

This can be done very easily and efficiently by Walnut app. It helps in managing expenditure and savings better. We can track expenses regularly. It has various categories like bank accounts, debit cards, credit cards and wallets. One can also set a budget limit to stop from overspending. It has a bill reminder feature to keep a check that all bills are paid on time. Manual reminders setting is also available for setting reminders for cash payments for milk, newspapers and other daily/monthly expenses.

Understand investment basics:

Many people have an opinion that keeping their money in a savings account will help them to save their money, but this is not so. Such people need to explore mutual funds, equity deposits, PPF, and fixed deposit services. Consult a financial advisor when required to find the right deposits service to get the maximum return.

Have a separate financial identity:

It is an important step. For this firstly one must have a PAN (Permanent Account Number) which is irrespective of the fact whether you are employed or not.

Get Insurance done:

A health insurance is very crucial in this era of the tremendous rise in every field. Hospitalization and medical may costs lakhs of rupees sometimes which can be cut down through insurances. Getting a life insurance cover also helps the dependents in case anything happens to you.

File your ITR (Income Tax Return) timely:

You definitely need a CA (Chartered Accountant) for this. If you have multiple types of transactions and investments and are running a business, then a CA will be of great help. It is not at all difficult if you are salaried. You just have to follow some simple steps to file ITR.

Build your own credit score by getting your own credit card:

Having a credit card is very useful. A credit card can be of great help in case of a cash crunch, in building a credit score and in maximizing the savings. With your own credit card, you can also build your credit score. Making timely payments and having a good financial history helps to improve the credit score. This credit score helps to apply for loans when required. Having a credit card also gives other benefits like cash backs, reward points, and discounts.

Build an emergency fund for unplanned events:

An illness, a job loss, or a family emergency may arise anytime and affect the financial status badly. Therefore, it is imperative to build emergency fund by timely and a set amount of savings. Review and track expenses and plan savings accordingly to have a proper balance of both savings and expenses.

If followed these tips smartly and wisely one can manage their finance efficiently and smoothly. At every step, we need to be careful in money matters. In the end, everything comes at a price so this price should be efficiently maintained. As and when required consult financial advisors to manage expenses and savings.

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