Women are inherent savers. The reason why household expenses are traditionally managed by our mothers and other female family members is because women are better at saving and budgeting.
Men, on the other hand, have a better way when it comes to investing. The point is not to compare, but to understand the strengths of each gender.
This post covers an important strategy for the women who wish to save.
The 50/30/20 rule
This strategy can help women in money management.
Fixed Cost – Expenses which don't vary much from month to month like rent, EMIs, utilities, etc. Keep them not more than 50% of your take home income.
FinancialGoals: Save 30% of your take-home income and invest towards your financial goals including retirement.
FlexibleSpending: Expenses Consider no more than 20% of your take-home salary toward flexible spending. These are expenses that can vary from month to month, like eating out, shopping, hobbies, entertainment, etc.
A survey in 2016 indicated that out of 61% women with individual financial account only 15% claim to have a financial plan for unexpected events. The percentage of advanced active bank account users is even worse (4%).Lack of knowledge is the main reason behind women's financial insecurity.
Women in India progress to the latter stages of the customer journey at a rate that is substantially and significantly lower than that of their male counterparts. While women do have registered active NBFI (nonbank financial institution) accounts at a rate greater than that of men, this rate is declining as banks supplant NBFIs.