Women are responsible for the financial well-being and safety of their children. Therefore mothers need to follow a few rules in their daily lives.
It is necessary to have a budget
If a mother raises children alone, she, according to experts, should draw up the income and expense budget. “After having gathered all sources of income, a clear idea of the possibilities will appear. A single mother will learn her current financial situation and how much work will be required in the future by making a detailed list. By the way, there are special household management applications on the Internet,” the article says.
Disaster fund
The article author recommends saving up for emergency expenses every month.
“Remember that this fund can only be used in the event of a real emergency, such as emergency medical care, job loss, or any other unplanned event requiring financial expenses. Your disaster fund should be invested in highly liquid instruments that maximize profits. Securities are a good option,” is recommended in the material.
Long Savings and Insurance
Endowment insurance contributions are usually small, but they might be helpful in case of accidents. “While mutual funds work well for short-term goals, there is no better tool than life insurance for a long period. You can start saving from as low amount as 500 rupees and then increase your monthly contributions,” the journalist advises.
Taxes
One of the ignored areas of financial management is tax planning. The vast majority of people are waiting for the last minute to pay taxes, but in this case it is difficult to save. “Look for ways to optimize your taxes! By choosing life insurance, you can get a good tax deduction,” the article says.
Buy adequate life insurance coverage
Life insurance programs guarantee payment to relatives of the insured after his decease. “Providing your life with optimal insurance is mandatory while the woman is raising children alone. Adequate life and health insurance can financially protect minors. Life insurance guarantees your children will have enough money to take care of themselves in case of an adverse event,” the article concludes.
Source: https://www.business-standard.com/article/pf/single-mother-build-an-emergency-fund-buy-adequate-life-insurance-cover-119101900903_1.html
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