Today, with many women choosing to stay single for a better part of their adult life for varied reasons related to work, or remain single because they are financially independent, it is imperative that they consider their needs and wants to secure their financial future.
It is advisable for single women to invest money in ‘safe’ zones like FDs, mutual funds, property or gold. Apart from life insurance, it is pertinent that as a single woman, you should be covered under a health and personal accident cover.
Here are some quick tips on budgeting for Singles :
1.Assess Your Financial Situation
Start by looking at all your bank account balances as well as get a hang of how much debt you owe. Remember to include things like credit cards, student loan, car or home EMIs. Calculate your monthly expenses: Make a list of your total bills every month. This will give you an idea of how much you spend on utilities like petrol, monthly rents, cable, electricity bill, travel, mobiles, groceries, vegetables etc. Entertainment expenses like shopping, movies, or eating out should also be taken into account
Every single woman’s finances should include a savings account. Open one at the earliest. You must save your money in two types of accounts – touchable or untouchable. While an untouchable account is a must, it is important to have an account that is accessible should you fall on hard times.
Determine how much money you can put toward your debt every month. Choose your schemes wisely. If you can’t part with a chunk of cash, don’t opt for long-term deals. Make sure to invest smartly.
4.Keep Your 60s in Mind
Spend your money wisely. You should know how much money you have in the bank. At least 10-20% of the annual income should be contributed towards retirement. Keep a check on your lifestyle, monthly expenses and other ‘external’ factors like inflation, global economic outlook or stock market movement, and depending on that up your retirement amount.