In the recent generation, it has become very essential for young independent women to manage their finances so that they can enjoy their present while planning for their future. Times have changed, now, along with men even women are becoming independent financially to manage the finances of their family. Starting up with financial planning at an early age will help young women manage not just their retirement life better but also provide a sense of security and independence throughout.
Why is setting a financial goal important?
Young women need to set financial goals. Creating financial goals will help in creating targets for working towards. One can set goals for both the short and long term. The goals for the short term can take a year to achieve while the one’s for longer terms can take a lot of years. One has to make sure that they are attainable or realistic.
How should young women start financial planning?
One must begin to invest at the start of their earning career. Financial planning is not a short journey so before getting started purchasing the right health insurance as well as a perfect policy of life insurance. Even though we are focusing on young women, health issues can show up at any age. Other than the adequate insurance policies, building an emergency fund equal to the 6months of one’s salary is also one essential thing to consider. Once the basics are dealt with one can start to invest.
What is retirement planning?
Retirement planning can be defined as preparing for the period when the income related to work will not be in existence. Planning for retirement is like strategizing to create a balance between savings and current expenditure to make sure the retirement is financially secured. Financial planning for retirement is essential for adjustment, success & smooth transition during retirement.