A penny saved is a penny earned! Our ancestors surely knew the secrets of making money. But the debate with Gen Z is – all of them are money makers and money crashers at the same time. Not to differentiate them as Men and Women as it will be biased when both of them have all the skills required for survival.
So, what is the key to the treasure – is it making more money, or is it saving more money? I guess both. While the Millennial save first and spent rest, Gen Y and Gen Z think or behave the other way round.
In the country like India, they say: save 30% of the earnings. In the West, they allocate 10% for rainy days and spent rest. So what is the formula to SAVE? Or let us ponder over a few thoughts about the Dos and Don’ts that can help to save.
Men and women spending habits may vary; eventually, both burn money. One has to understand the difference between spending and burning. In such situations, the calculator comes handy. It enables to cap their spending laundry list. I know a lovey-dovey couple who maintain monthly expenditure. They try to stay in limits in each of the categories. It helps them keep the promise of saving about 30% of total earnings.
The top on the spending chart is EMIs or Home/Car Loans/ Home rentals. Then comes monthly grocery, education of kids, followed by insurances & health care. Last in the priority should be entertainment and unmindful shopping. So sticking to a regime helps, literally meaning – now spend if you have fed the previous items. The idea is, spend carefully. Only when necessary. Now let us turn our attention towards investments.
Good Investment is one that gives regular returns on the money parked in it. Various options are ranging from Mutual Funds, SIP, Stock Markets, Real Estate or precious metals. These days, the last item is giving one of the highest returns. But, if seen over a period, Mutual Funds and SIP have been the choice of many.The Rule of the Game while making investments is that never put all the eggs in one basket. Diverse Portfolio is a better way to ward of risks in one option.
Now the question is, do men and women save and invest differently? Or, do men think smarter than women on these topics? It is a wrong notion. In the last decade, or so, almost all the top banks had woman boss. Contrary to the belief, when it comes to managing home finances, women are considered to be better as managers.
Most of us assume that when it comes to savings and planning investments, fairer sex takes a cautious path & men like to take risks.
However, there is no concrete theory that proves this axiom. There are some studies done. All point out that 38 per cent of women tend to opt for risky financial products. Whereas, in men, it is 46 per cent.
Likewise, it is just a myth that women tend to shy away from Mutual Funds and SIP. More and more studies coming out on the performance of various financial products has lifted the veil from this sector and
women have started views things differently and take logical decisions.
Women have to cover lots of ground. However, it is really in the last century that Women have successfully broken the jigsaw puzzle code called finance! They are successfully moving in the so-called male-dominated realm, The Finance.
This situation is changing evolving. Soon we shall witness a tipping point when women shall have an equal say as men. Nonetheless, some of the cliches remain seeped in the minds of patriarchal society. But, not for long. Women will surprise men, and they will change the fundamentals of the world of investments and financial planning. Just wait and watch!