Financial Tips for Women who are no Longer Working

Tips for Maintaining Financial Security for Women Who No Longer Work

      The responsibilities of a woman change drastically after getting married and having children. Apart from taking care of herself, she also has to take care of her husband, children, and the rest of the house so that they are in order. Doing so is certainly more difficult while working, that's why some women decide to focus on being a housewife, and not work anymore.

From a financial perspective, this decision clearly reduces the family income. However, this can be anticipated by carrying out a number of financial tips, some of which are as follows.

Recalculate Income

Family income will decrease when women are no longer working, it is better to do a recalculation. Calculate the salary that your husband gets, then think about what needs to be financed for one month, to ensure that the salary is sufficient. If not, the process of meeting the needs of the family will be disrupted.

It doesn't matter if your husband's salary is sufficient. If you are mediocre or lacking, you should find work that can be done from home to increase income.

While working, women can take care of their children, husband, and house too. The point is, you have to be flexible because the responsibilities you are carrying now are heavier than when you were single.

Create a New Budget

If at the previous point you only thought about expenses, now is the time to write down these expenses. Start with routine costs that must occur in one month, such as electricity, water, insurance, food, and installments if any.

A budget is a plan you make to decide how you are going to spend your money in a given time period. (consumer.gov)

Make a budget in detail, allocate larger funds to anticipate higher costs than the previous month.

This budget was created as a guideline when shopping, so that the name of the overbudget can be minimized. The budget also helps you calculate the remaining salary, so you know where the rest will be transferred. Is it saving, investing, or both?

Salary Saving During Maternity Leave

For women who are about to give birth, you are entitled to three months of paid leave and are paid in full. It's better to save income during this maternity leave for financial preparation.

Because in the next month, you are no longer working and earning more. You only expect income from husband. So, try to wisely allocate leave salary for the sake of the family's financial well-being.

If possible, try to allocate 100% of your paycheck to a savings or emergency fund account. Calculate the initial capital for opening a deposit.

Invest Money for Additional Income

In order to remain financially stable even though you are no longer working, start investing money since you are still single. It doesn't need much, just 20% to 30% of the total salary per month.

If done regularly, then the total investment can mount in the next few years.

In addition to being a provision for the future, there are a number of advantages when investing. Investment profits can be used as an additional source of income every month, and can be taken if there is an urgent need.

Some of the investment products that you can try are deposits and mutual funds. Both are known to be low risk.

Set up an Emergency Fund

In reality, things often happen that are unexpected. Starting from families who fall ill, or suddenly get a disaster, and others who need money.

To anticipate the cost, you should prepare an emergency fund with a percentage of 10% to 15% of salary each month.

Suppose the salary received is $2000 per month and 10% is allocated to an emergency fund. Over the course of 5 years, the emergency fund collected was quite good, which was $12000

When you stop working, these funds cannot be allocated anymore. So it's better to collect it now as a financial provision in the next few years.

Avoid Impulsive Shopping

For those of you who like to shop on impulse, try to reduce or eliminate this habit as much as possible. Because the situation is different. You are no longer a single person who can buy anything without thinking.

Earnings go to zero when you decide not to work after giving birth. Relying on your husband's money is certainly not good if the goal is to spend impulsively.

It is different when shopping for family needs, especially children.

Adhere to the budget that has been made beforehand. Thus, the family's financial condition is still under control, even if you are no longer working.

Prepare Children's Education Fund

While children are still small, prepare their education funds from an early age. Prepare for your child's future with education insurance from a trusted insurance company.

This is important considering the cost of education is increasing every year. Don't because you are not aware, your child will not go to school or drop out of school.

The preparation of education funds will definitely reduce the financial burden when the child grows up. At least you and your husband just need to prepare for the lack of costs, not prepare it from scratch.