On Mother's Day, know 8 financial tips for mothers and emergency fund plan for expecting women

Mothers have always been the spine of the family. Traditionally even when women were not financially independent they managed to come up with enough funds so that a family could survive during the financial crisis. Most of the women today know about the importance of saving and the majority of them are financially independent.

Even then often mothers tend to overlook the need to put aside some savings for themselves, especially for their health and well-being. On Mother's Day today, learn about 8 financial tips that can help you tide over during an emergency or when you want to fulfill something that you desire very much. Planning early can also serve as a boon for mothers who are expecting a baby soon.

Managing your budget

Managing a budget is usually in the hands of all the mothers in the family. So the best way is to put all the expenses on paper, have a look at them, and see where you can find a window for cutting down on some of the expenses so that a particular amount can be diverted towards savings.

Discuss with your family members

A normal family budget encompasses everything from school fees, groceries, and electric and water bills to day-to-day traveling expenses, housemaid charges, medications, and overall maintenance. Before planning a certain amount for savings, sit down with your family members and discuss with them how they can reduce their expenses.

For example, children can share bikes with friends to go to schools and colleges, or certain frivolous expenses like eating out regularly can be avoided.

Start with small savings

For a middle-class family putting aside even a small amount every month can be difficult. But it is a habit that can go a long way and can serve as a cushion during financial distress. To make saving a habit you should start with small savings and gradually increase it to a level that does not put much stress on your monthly expenses.

Make the savings automated

To ensure that a particular amount is saved every month, choose automated savings plans like ULIP or mutual funds. So the amount gets automatically deducted from your bank account every month and thus the savings are made without fail.

Short-term or long-term savings?

This decision depends a lot on your requirements. If you start early when your children are still in nursery or primary school then chances are that the savings might be needed when they aim for higher education and by that time you also may need some funds for maintaining good health. But if your children are already past high school then the goal should be short term.

Try to pick up saving or investment schemes that mature from time to time like the Money Back policy so that you keep on getting funds at regular intervals.

Insurance is priority

Apart from savings for emergency funds, you must invest in certain insurance policies such as medical insurance and life insurance. Term insurance is a good plan for those who are young with liabilities.

Did you think of a pension plan?

For every mother who puts her children and family before her investing in a pension plan is a must. Even if you are a working mother you must put aside some amount every month to invest in your pension. This should be your top priority.

Recreation and vacations

It might come across as a surprise but you must also put aside some amount for recreation and holidaying. For example, enjoying fine dining once a month or traveling to distant places once a quarter should be thought about because such things add more zing and zest to life and are extremely beneficial for mental health.