So if you are the more ‘finance’ and ‘future oriented’ person in your family….what should you do?
Your husband will NOT SIT WITH YOU to financially plan for your family’s future, accept that. He will sound sincere – but there will be no action.
Here is YOUR action list:
Write down your financial goals: Maybe in a crude manner, maybe in a brilliant fashion, maybe S.M.A.R.T goals, maybe not. However, make a beginning. Let me guess…
- providing for your daughter Lavanya’s education
- providing for your son Arup’s education
- providing some kind of a kitty for your parent’s old age expenses
- providing a bigger kitty for your In Laws old age expenses
- 2 foreign trips over the next 5 years
- replace the current car in 3 years time
- buy that bigger house in the neighboring suburb – your kid’s school is nearby to that house
- completely refurnish the house 2 years later
Next put a financial number to what this will cost as of today….so your daughter Lavanya’s education is going to cost you the following:
school: current fees Rs. 1L p.a – 12 more years – adjusted for inflation – Rs. 40,00,000 + higher education like Engineering and MBA. Well we are taking of upwards Rs. 1.5 crores.
Now similarly put a number to all your goals. Assume inflation of 10% p.a. Then do the unthinkable – just add all the amounts together (it is stupid because these are adjusted for different time periods)…..and then the figure will hit you real hard.
Say the figure comes to Rs. 50 crores. Ask your husband – where is this money going to come from?
Well clearly it can come ONLY from the earning of the 2 of you, some inheritance (have no expectations, you do not know how much they are going to spend on their medical expenses).
ACTUALLY THE BIGGEST CONTRIBUTOR TO YOUR KITTY IS – time- so if you start early the GROWTH on GROWTH that will happen will also contribute to your requirements. So now that you have a Goal statement, and you have some kinda clue about how much money you need START your SIP. Explain to your husband how
- starting early (Today) helps and
- how you are already living far beyond your means and
- the concept of Paying Yourself first http://www.subramoney.com/2013/12/pay-yourself-first-means-what/
I find a lot of women who are lazy about finances. So they will not do anything – and the husband becomes a whipping boy.
Reminds me of a man who claims to be very diet and health conscious. He has all the theoretical knowledge about food – i mean the Googleable knowledge. He is almost afraid to go to the kitchen. His wife is far fitter and she is a busy executive. Most of the eating is outside the house…even though she is an awesome cook.
He keeps cribbing about how she is not a good cook.
So women, wear the pants, and act on YOUR MONEY, now.
Men pick up the ladle and learn cooking.
You cannot live without money. You cannot live without eating. If the men will not take the initiative, or the women are afraid that they will lose the power of compounding….one of them has to act. Today.
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