Last Updated on October 17, 2023 by wpadmin
In India, if you are a homemaker, you are probably one of the most important people in your household. A homemaker, referred to as a “housewife” has a major role to play in a family, and perhaps, the most critical of all roles. Typically, it is the female who is the housewife, and she is responsible for the smooth management of the home and its operation. Often, this is a thankless job and is taken for granted by the rest of the family. Anyway, if you are a homemaker, it is worthwhile to be financially independent and involved in many of the financial decisions of your family. How to become financially independent may seem like a daunting task, but it is not that hard to do. By following 5 easy steps (or goals), homemakers can achieve financial independence that gives them a boost in their self-worth.
Why a Homemaker Should Make a Financial Plan
Homemakers run the home. To a large extent, they manage a budget and make sure a home is managed seamlessly as far as the expenses of running the home go. Therefore, if you are a homemaker and believe you have no part in the finance department of your home, you are wrong. As a homemaker or a housewife, you already know about maintaining a budget and allocating finances adequately. You may even have a hang of how to save a certain amount of money every month.
Nonetheless, given the overwhelming task of running a home, you may lose track of expenses and not know how to become financially independent. This is the reason why you should make a financial plan and carve your way to being financially independent. To do this, the initial steps you have to take involve setting clear goals and acting on them. These goals may be viewed as steps to becoming financially savvy and gaining financial independence that boosts your self-respect.
How to Become Financially Independent in 5 Steps
Here are 5 steps that you can take to begin your path toward financial independence and a high sense of self-esteem:
- Goal/Step #1 – Secure Your Future
Homemakers typically depend on the income of their spouses for financial security. This may be seen as risky as your spouse may lose their job, or suffer losses in business. Worse still, due to an unfortunate circumstance, there may be a health emergency or an untimely demise and this may shock the family, both financially and emotionally. At such times, the last thing you need is financial stress, given the unavoidable emotional stress a family experiences.
To protect yourself and your family from such circumstances, you should know if your family has health insurance and term life insurance. Health insurance can be a financial relief in times of health emergencies and term life insurance provides financial protection to loved ones in the event of the unforeseen demise of the breadwinner of the family. For an even extra layer of financial safety, you can invest small amounts of your money in mutual funds through the route of SIP (Systematic Investment Plan). You can invest amounts as little as Rs. 500, but these amounts potentially grow over time. To become financially independent means to know how you and your family are protected financially.
- Goal/Step #2 – Find Out About the Family’s Finances
In typical Indian families, housewives are not involved in the financial decisions of the family. However, it is important for women to participate in these decisions and be aware of the details.
You need to grasp how your family’s financials work, like say, the source of the family’s fixed income, what expenses exist beyond just the household expenses, whether any investments or savings are being made, if any debts or outstanding loans exist, and whether your family has any kind of insurance and the location of documents pertaining to the same.
- Goal/Step #3 – Engage in Some Form of Employment
Whether you wish to learn a skill and do some work from your residence or engage yourself in some freelance work, it is important for homemakers to seek work on the side. This is one of the key ways how to become financially independent in India. Learning new skills is easy today, and there are many free videos online that can teach you. The additional income you earn is your own and can enhance your confidence levels and make you feel financially secure. You may not start with much but you can grow gradually.
- Goal/Step #4 – Create a Budget
Your 4th goal towards financial independence, or your 4th step, should be to create a budget in detail. You may already have a budget through which you are running your household, but check this in detail so you can evaluate where you are spending and whether you can save more. Additionally, according to the total income of the family, you can list all the expenses (like utilities, travel costs, elderly care, loans and EMIs, house rent, etc.). You should revisit the budget on a monthly basis and check if you can save small amounts to invest.
- Goal/Step #5 – Continue Your Financial Education
It is vital that you continue to educate yourself financially. One of the main ways of knowing how to become financially independent is to constantly gain knowledge about finances. You may learn about various investment instruments and what suits your requirements best, check market updates, and learn about the economy in general.
Be Financially Aware
It is not hard to be financially clever once you have a pulse on the action and take steps to better yourself financially. Achieving some form of financial independence is a necessary and meaningful step you can take towards gaining a boost to your self-esteem and future security. You also become a great role model for your children and make them financially educated.
