Budgeting Finances

Is it really important to manage your hard-earned money?
The answer to this question by each of us would be YES, but Have you ever done such a thing yet? Probably NO.
Whenever we hear terms like Budget, Finance, investing, etc., we will always find less engagement by the side of women who have accurate knowledge. Still, somewhere in their minds, they think this field will be handled by the males in their homes or even at the workplace. The best contrasting example of this situation is our finance minister Nirmala Sitharaman, breaking the stereotypes and manages the finance of the entire nation effortlessly.
Keeping track of budgeting is not everyone’s cup of tea; most just check how much they spend at the end of the month, but if something is wrong with spending, all you can do is regret it. And in some cases, they decided that we would spend money systematically or when needed. They follow it for a month or maybe two but after that, “Wohi Ghode Wohi Maidan.”
Keeping track of your budget mindset has to be perfect.
Having a budget plan ensures the availability of money through all the phases of your life, both personally and professionally. Term’ Term’ Investing” is always associated with and is limited to investing in the stock market. Still, the stock market ensures better results when you invest for the long term, while for investing for a short period, there are other options. Young Women, from their initial years, need to understand managing their finances and investing. As a beginner, you must try to acquire as much knowledge as possible. Still, before investing in shares, you must be able to read its ups and downs, and along with it, you must be able to read the company’s portfolio. You must start with opening a Demat account, and in between the normal and commodity accounts, you can start with normal accounts because the initial investments must be small like they could be in ITC; before investing individual seeks the amount of dividend the company distributes as dividends among its shareholders.
People question how to make decisions when the stock market suddenly goes up or down.
Rachana Ranade, in her interview, stated that when you invest in a share, it’s not just that you are investing in the share, but you are investing in the company’s portfolio. Individual needs to stick to his/her plan and wait and have patience for the desired results. Just like a seed sown needs time, effort, and patience to be a plant.
Even if you invest in real estate, gold, or silver where your investment can turn into a loss, the concept here implies that you need to identify the correct asset class which outperforms the other asset class, which can be identified not based on intuition. Still, based on past year’s data, losses are very much possible, but when you identify the Correct asset class based on past year’s data, you can invest your money in the right shares with the right amount. A good example of this could be the IT bubble instance from 1999, where the stock market was very high but then became low and simultaneously recovered from it.
Investing in fixed deposits when you have inflation for the present year will not lead to better results in the long term. You can invest in fixed deposits; otherwise, the best alternatives for investing for a long-term period are always mutual funds and index funds. Diversifying your amount in the investments which you have done also plays a very important role. The number one stock should primarily differ from stock number fifteen in terms of amount. It should be in decreasing order from one to fifteen. Where your conviction for stock number one must be the highest. (Decreasing order)
As mentioned above, investing is just like a seed sown, which becomes a flourishing plant only when you put in the right efforts, time, and patience. For young women, it becomes immensely important to comprehend the financial knowledge in investing in stocks, mutual funds, or index funds and effectuate profitable results from it.
By Srishti Yadav