It is essential for women — be it working women or homemakers — to keep themselves and their family financially secure. In the olden days, women generally had the habit of saving up in kitchen containers, but in an inflation-ridden world, that strategy is futile.

Financial security demands that we choose the best investment option available. A good investment gives better returns than a savings bank account or a piggy bank and helps us to cope with inflationary pressures.

Homemakers and Investments?
Although many think homemakers make very bad investors, having, as they do, very little knowledge of share markets and the technical aspects of investing.

A fundamental analysis reveals that they are the ones who could be good investors as they decide on what to purchase for the entire family and are aware of company performs better and why. They need not make decisions by looking at the company’s balance sheet. But, they’re the main consumers of most of the products in the market.

This is what can help them analyse stocks and invest in shares and equity. They are uniquely qualified to buy and sell shares.

How does one choose investment option?
The best way to plan your investment is to know your goals. Take a piece of paper. Write down what you would like to achieve in your life.

You might want to have a house of your own, probably a luxury car, a world tour, etc. These are not immediate needs but your long-term goals.

There are a few other things that you need to achieve in another two-three years or more. This may include higher studies, marriage, the purchase of a two-wheeler and the like. These are your short-term goals. These keep changing. Your short-term goals today will not be the same when you become a mother.

The article discusses in detail about the investment options for homemakers at different stages of life.

In your 20s: The first little steps
In your 20s, you are likely to be in your college or at your first job, so your income is definitely going to be very less.

You can choose to invest them in a recurring saving deposit or bank deposit, where you can earn low but regular and fixed returns.

You can also choose to invest your money in mutual funds because the risk involved is lesser and you can invest very small amounts of money.

Once you have started earning good money in late 20s, you can start investing your money in equities, where the risk and returns are higher.

In your 30s: The time to save
In your 30s as homemakers, you might not have plenty of money to invest, but make sure you have a term insurance for yourself and your family. A health insurance will help keep you more secure during the times of emergency.

Try to cut down on unwanted expenses and invest in education funds for your children’s higher education, take up a suitable retirement plan for yourself and your spouse. Avoid endowment plans as they carry higher charges and may not give high returns.

Avoid buying gold ornaments, they are only going to eat away your money in the form of wastage and making charges. Instead, invest in gold-based funds and buy gold in the form of coins/bars.

In your 40s: A house, and retirement plans
In your 40s, you need to boost your children’s education and wedding investments as also your own retirement plans.

If you are planning to build a house for 1,500 square feet, take only 1,000 square feet for your accommodation, and rent out the remainder. Use the returns for investments. You can also take in a paying guest and use the rental and food charges for your short-term investments avenues.

In your 50s: Cut down risks
In your 50s, you should invest in risk-free investments. If required, you can withdraw your long-term investments for your child’s higher education, or switch it to a debt fund. Do not wait until the last minute, as you will be at risk if there is a sudden fall in the market.

In your 60s: Vote for safety
You need to avoid risky investments in your 60s. So transfer your entire money into bank deposits or into a recurring deposit so that you will receive good returns and your money will be safe.

(The writer is the CEO of bankbazaar.com)