Last Updated on Aug 25, 2022 by Aradhana Gotur

Finance has always been an integral part of everyday life. Before making any purchases, however big or small they are, we thoroughly check our personal finances (at least mentally!). In fact, money management sayings have always been prevalent in every household. One of these lessons tells us wisely – ‘keep track of the paisas, the rupees shall follow suit.’ Another one says that if you do not control your finances, they will end up controlling you.

With such money management principles ingrained in our minds from the beginning, we tend to be cautious with our finances. For instance, you may always budget the monthly ration and make a plan to save the most on everyday expenses. Now imagine what all can be done with proper financial literacy. It will not only help you secure your finances but will also be of great help for your family members in their time of need. 

Apart from this, gaining financial literacy helps you become independent. This is something that all women must pursue, irrespective of whether they choose to take up a job or work to run the household. 


This International Women’s Day, Tickertape is here to help in decoding money management, especially for homemakers! Let us get started.

Money management by homemakers

As homemakers, more often than not, the main bread-earner in your household is your spouse. However, managing the income is equally important, as is earning it. 

Keeping a check on the savings and reducing unnecessary expenses is a starting point. Apart from that, even while staying at home, you can grow your wealth by investing in the right assets. Your corpus could be of any size; what’s important is to have one. With this, you can earn a passive income for the family, multiply your wealth, and save for the rainy days. In the future, you can pass on these valuable lessons to your children and empower them to be financially sound and independent. 

Let us look at a few tips that shall help you manage your money better.

Tips on money management

Simple things that you incorporate into your life can make you wealthier, giving you a sense of peace. Here are a few ways to get started:

Opt for health and life insurance 

It is essential that you get yourself and your family insured. Choosing a health insurance plan that covers all your medical needs is the way to go. As for life insurance, you may select a term plan, as it comes with affordable premiums. It can be as low as giving Rs. 5,000 a year. As homemakers, you may often ignore your health and prioritise that of your family. Apart from taking care of yourself, you must also ensure you have financial backing in case of health emergencies. This is where insurance comes to the rescue.

Budget monthly household expenses 

Every person should appreciate the idea of a budget. It keeps your finances organised and helps you make better decisions. Homemakers are no exception. They play a similar role as the finance department of a corporation while looking after your household.

One way to do this is by writing down the income and expenses every month. You may also make an excel sheet depicting all the inflows and outflows. This will help get a clear idea about savings. It would also reduce the chances of any impulsive purchases. 


Track investments in which you are the nominee

It is always good to track the terms and conditions of investments made in which you are the nominee. There are two primary reasons. First, it will help smooth transition whenever the corpus is given to you as the beneficiary. Second, it will make you aware of the various terms and conditions involved. 

Build an emergency fund

An emergency fund is an accumulation of savings that come in handy in case of emergencies. This may be an unexpected large payment, medical bills, or daily expenses funds if the primary income source is lost. Ideally, this fund is equal to 4 to 6 mth worth of your monthly income. It can also be calculated as the amount required to fund 6 mth of expenses. Managing this fund and keeping it handy will help you sustain the household in emergencies.

Take the benefit of Government schemes

The Government has launched various schemes that aim to improve people’s financial standing, especially women. For example, through schemes like the Pradhan Mantri Rozgar Yojana, getting a collateral-free loan up to Rs. 1 lakh becomes seamless. You may start a small business or invest in the right places, attaining new heights of financial freedom. Numerous such policies exist in India to help you financially.

Plan and accumulate a retirement corpus

Retirement planning is important for everyone. You must start building funds at the earliest to live a secure and relaxed life in your old age. Do you know the outcome of depositing a minimum of Rs. 500 per month in any of the recommended Nifty 50 stocks? What happens if you increase this amount by a mere 10% every year? 

Every year, your wealth keeps compounding. Now imagine your corpus at the gap of 20 yrs. To your surprise, it would come out to be around Rs. 13,00,000. If you give it more time, say 30 yrs, the figure jumps to Rs. 75,00,000. In 40 yrs, the corpus would amount to a whopping Rs. 3.5 cr. 

Investing early for your retirement is the way to go. Even if you are a little late to this, it is always better to start whenever you can instead of not investing at all.

Invest in other assets

Gold has been the commodity that any homemaker or even a seasoned investor would swear by. But remember, other instruments in the market can also give impressively high returns. Some examples include Government bonds, debt funds, direct equity, and equity-oriented mutual funds. The popular schemes because of their safe and stable returns include fixed deposits, NPS, and PPFs

But do remember, the higher the return, the higher the risks. So don’t put all your money in one basket. Rather analyse your risk appetite and invest accordingly.

Wrapping up

Financial literacy is paramount, irrespective of what role you play. For homemakers, it is a way to improve their money management skills. While taking on the job of running an entire household, this skill comes in handy while estimating the cost of everyday activities. Furthermore, it gives you the confidence to start investing and multiplying the household income while also safeguarding the present and future requirements of the family. 

Ayushi Mishra
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