Last week we saw the need for the housewife and children taking the initiative and sit with the other parent to discuss family finance.There is another very important fact which the wife mostly ignores in the name of non interference..I.e the habits of the husband which are capable of burning a hole in the pocket and in the heart as well.Yes I mean the habits of smoking and drinking. In many families the women do not attach much importance to these two vital habits and on the other hand taken it as a given thing for a male.Some others escape by blaming it on the family habits and through the easy escape route. ..that the man will never listen..All these are only half truths and escapism.
No doubt the spouse should respect the individual freedom and should never go for micro management.But there can be no excuse in matters affecting the common interest and peace of the family.More than mutual respect the husband and wife should respect their marriage which has lot of love,respect,happiness etc attached to it.
The health hazard that these habits will pose over a period of time is immense and quite destabilizing.Also nobody can save the affected person at a later stage.
Financially too the loss is very significant.A packet of 20 cigarettes costs anywhere between Rs 110 to 130 and if a person smokes 10 packets in a month and resorts to alcohol even twice a month the family will surely suffer a minimum loss of Rs2500 in a month which cumulatively over a period could be devastating..
Families big or small …income is more or less…the first priority is to seal the holes in the pot failing which no water will in and we will have only an empty pot soon.
As we discussed in the last post the housewife presents a typical example of insufficient financial literacy and it will be a service to the society if some sincere attempt is made in this direction.The reason that most of the housewives keep away from family finance are many. The primary reasons are
1.the male earning partner dominating and snubbing any interest shown by the wife.
2.The wife herself is not interested much and places lot of faith in her partner’s capabilities to manage the financial affairs of the family.
3.both of them are not very educated and the survival itself is very difficult with limited income.
Though the above reasons may appear to be present in many families it does not mean that they can allow things to continue the same way forever.Whatever be the household income and whatever be the education of the members it is very important that both the husband and wife along with the grown up child sit and discuss the family finances regularly without fail. on the salary date the family should sit together and the breadwinner should tell the family what his income is…what are his statutory deductions like provident fund etc and show the wife the balance amount credited in the bank account or hands over as cash to her.This will make the child understand the importance of money, as also a feel of the family conditions.Thereafter the family monthly loan liabilities,recurring expenses etc should be clearly dealt with and a permissible amount is set aside as liquid savings to be held in a bank account for meeting the contingencies.
More about banking and investment next….
As I mentioned in a couple of my earlier posts the topic of money and investments is very special in that it is the most important aspect in one’s life but given the least attention.Earn of course we do.but earn in a honest way,know the rules,be aware of the options and above all be satisfied at some point in time that we have travelled a straight path and there is nothing to hide in our life.There are lot of high end courses,advisors,books,online materials etc most of which no doubt are good and useful but available only to the upper band in the society due to the high cost involved. I honestly believe there is a huge captive group available to know and benefit from all those avenues but unable to do so due to various reasons.For example the teenage students in schools …they are continuously bombarded with inputs about the studies…marks..placements and ofourse a overseas job.i If we take some time out and observe some such youngsters who as a result of all those conditioned inputs and despite handsome salaries are yet to understand the knotty..gritty of money life.so also an average housewife who mostly does not take any active part in the financial decisions in the family.Both these segments deserve a very urgent and holistic administration of honest inputs about money and how we earn it.
I dedicate all my blog posts in www.moneyandmany to all such people with a sincere appeal: start talking about money,,, start thinking about money.. it is not a SIN to do so for money is like water with no color or tastes.It does what the owner intends to do with it…
LET US MEET AGAIN.. A VERY HAPPY DIWALI
Normally when we are in a bank we find some people coming in and ensuring with the people in the front desks about deposit schemes. More sophisticated customers enter the branch managers’ cabin and discuss with him about the savings options. It is also common practice that those of us who want to deposit some surplus cash go to different banks and find out the rate of interest offered by them. This is our first idea about savings.In India banks are the first and safest priority for the common an to keep their hard earned money.The public sector banks are more preferred by the middle and lower middle class customers though the banks in private sector also are equally good.But the first question put up by the customer is : Is this bank a Govt.owned bank or otherwise.This tendency prevails even today though to a lesser extent. This is mainly because of two reasons. The man on the street believes anything connected with Government is secured enough.. be it savings or employment or investment. The second and more important is the lack of awareness about the alternative avenues available to save or invest.At the most the next popular investment options that will crop up is either Gold or real estate.
let us therefore move ahead starting from the most common and popular options to the other available options one at a time.