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Financial tips that will help young women earners plan their finances


Some important financial rules for young women earners who need some financial stability for themselves.



Young women earners tend to be excited about earning a sizeable salary that is entirely their own. The joy that comes with spending one’s hard-earned money often overshadows the responsibilities that come with being a wage earner. It might take some time for young women to get used to the fact that they must save money to ensure continued financial security. This change in attitude will come once they abide by certain financial rules.

Here are some financial rules that young women earners need to know:


Start with your bank account

Ensure that you have a core account in the bank where your salary arrives every month. This can help in building a better financial status most simply. This is necessary because, for loan and visa applications, you need to have proof of a steady income that grows with time. Remember, your bank account is not solely a convenience. Make sure you account for all your incomes and view all the updates and statements as well.


Organise your expenses

This is perhaps the most important rule of all. You need to be mentally prepared to part with some money from your income as expenses. This will prove to be an easier method to budget everything rather than just evaluating the absolute incomes. Categorise your travel expenses, bills, rent, and other basic costs that are mandatory. However, make sure these mandatory expenses don’t exceed 60% of your salary. This way, you will be able to easily evaluate if your expenses are moderate or excessive.


Spend mindfully

Of course, you will be having expenses other than the mandatory ones. What matters is whether you are borrowing money while keeping a positive amount in your account. Do this till your next income comes in. To achieve this you will need to be limited with your purchases – which could take a little time to get used to. Remember there might be many choices to spend, but you need to choose those that are suitable for your income. Even if the bank offers you a credit card, make sure you use your debit card most of the time.


Maintain a stable credit history

You are undoubtedly aware that the entire responsibility for the credit history of your income is solely on you. In case you need to repay an education loan, make sure it’s the top priority. You can always use some additional help, right? But assuming you can default on your education loan is just not done. Having a poor credit score or credit history can ultimately hurt other important things as well, such as a car loan or even a home loan.


Saving is a big deal

We get it that you are earning now and want to spend every single penny you make. But saving is as important. It should be the default option for you if you want a strong hold on your finances. If you think you will be able to save money later, after you’re done splurging, you’re in for a shock. You will see that your account balance is often zero. There are so many options for saving money: invest in a SIP or put some money into that PPF account. Just make sure you are saving some amount regularly before you go on an (occasional) spending spree.


Emergency funds are a must

You need to be aware that you might need funds in case of an emergency. We understand it might be difficult to plan for unforeseeable events. This is especially the case when you are a young woman earner. However, you need to make sure there is some cash available in your account in case you need it for an unexpected contingency. That way, you won’t have to worry about taking a loan or borrowing money (which isn’t good for your financial security).


Research before investing in stocks

You must have heard about the fact that there is no shortcut to earning money, but there are smarter ways. Investing in stocks is one of those methods in which, if you have invested smartly and at the right time, you can generate good returns. However, investing in stocks requires a lot of reading and homework. You don’t want to lose all your money due to some bad investment, do you? So, proper research is essential. Check out the reports of the companies whose stocks you are interested in or have a chat with the experts. Once you are confident, then only invest your money.


Last words

It boils down to this: maintaining your finances is your responsibility. Follow these financial rules without fail. While they might take some getting used to, you will eventually come around and achieve financial stability. Without having to compromise on living life to the fullest!


Parag Nesarikar

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