Financial Planning Guide For Women: Top Mantras

Outlook Money

Emergency Fund

Emergency Fund can be achieved by saving a fixed amount monthly, ideally around 1/3 or at least 20 per cent of the salary. It will take 9-15 months to accumulate this fund.

Emergency Fund

Health Cover

While employer-provided coverage of spouse is beneficial, it is wise to explore additional personal medical cover. Ensure it covers women-specific health issues such as breast, ovarian, and cervical cancers.

Health Cover

Maternity Cover

Most insurers cap maternity expenses at Rs 50,000, so consider going for a small top-up that can cover end-to-end maternity expenses before getting pregnant. If health insurance isn't an option, allocate some funds monthly towards these healthcare needs.

maternity

Maternity Sabbatical

If one plans to take a maternity sabbatical, ensure family's income can support a potential 30-40 per cent increase in household expenses during this period without contribution.

Maternity Sabbatical

Term Insurance 

Start off with a small vanilla insurance plan that is 10 times your annual salary and keep topping it up over time. Term insurance is cheap if one gets it early.

Term Insurance

Your First Loan

Securing loans for the first time can be challenging, so using loans against fixed deposits or considering gold loans can be helpful. In a loan against FD, the interest rate would be lower than other loans and it would be easier to get as the bank has your collateral.

Loans

Borrowing Guidelines

One should limit credit card spending to 30 per cent of the allocated limit to avoid debt and get a good credit score. Further remember that women homeowners and borrowers get various incentives on home loans, including interest rate concessions, reduced stamp duty costs, and income tax deductions.

Compiled by Syed Muskan

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