So, you are thinking about the economic status of your house help. And that’s the reason you have come here to read this post. As an employer (or homeowner), you can do a lot to help your house help deal with the financial challenges they face.
In general, India has witnessed an upsurge in demand for household assistants who can help manage daily errands. But amidst the lockdown and global pandemic, the economic scenarios of these workers have become all the more complicated and uncertain. Another important factor to keep in mind is that you can approach your house help with the best of intentions and power with all your knowledge.
However, it is still possible that your house help may not take up your offer or even want to sit down and talk about his/her finances. In such a scenario, do not feel defeated; approach your house help with the same kindness as you do on a daily basis without bringing up their finances, and he/she will reach out to you when they feel they are ready or open to taking your help.
You could be your house assistant’s well-wisher, with the intention of organizing their monetary structure. If they require a loan, you can tell them how to use a loan app correctly! Paying some extra money sometimes can help them, but the main solution lies in teaching them how to handle their money well. On this note, let’s learn how you can help your domestic worker achieve economic security! To begin with here’s presenting the tips and tricks.
Setting a Budget This is the starting point from where you’d be able to instruct your house help about how to achieve a stable financial condition. Consider understanding the total expenditure, the family's spending patterns; comprehend their daily financial expense, etc. Make a strategic plan for your house help so that they can set a budget accordingly.
Build Them a Financial Calendar Setting reminders for periodical payments required for house rent, utilities and loans can be a praiseworthy move. If you think your house help won’t be able to handle it correctly, set appointment reminders for them. This will help them remember to focus on their long-term financial priorities and goals.
Choosing the Interest Rate The importance of choosing the correct interest rate while applying for a loan is critical; you may be well-aware of this; however, your house help may not. You can guide them through the process and make them realize the importance of being aware of the financial tools they are using. Pay close attention to the interest rates to help inform them about debt and savings commitments! You can refer to a loan app to understand the nitty-gritty.
Set Financial Goals If your house help is the breadwinner of the house, there are chances that maximum or all of their money gets spent! However, that doesn’t mean that your house help would not have any goal to accomplish. For this reason, use dates and numbers to understand and break down what they wish to achieve financially.
You can help them contextualize their financial goals and aspirations by making them realize the importance of the compounding effect regarding the money they make. Implement a strategy so that they can save a considerable amount for their future goals. Ask them to adopt a spending tactic!
Not To Co-sign a Loan If your house help has co-signed a loan with a family member, the future might become nerve-wracking! Because – when one member misses the payment, the overall credit score takes a plunge. Not only does it destroy family relationships, but it also affects their financial status! Let them understand the importance of choosing an instant loan app rather than taking loans with higher interest rates or co-signing a loan.
Choosing a Loan App Everyone, even whether it is you or your house help, might need a loan at any point in life. During those situations, using an app can be rather convenient. A loan app offers instant personal loans with minimum documentation; it can be used for times when your house help needs to pay their children’s fees, or any medical emergencies or for such necessities. And the duration of the loan is also short compared to traditional loans offered by banks. The process is not just quicker but is also hassle-free. Being an employer, you should choose the best app for your house help so that they avoid following in debt traps when they are in need of money.
Investing Money Appropriately! To get financial security in the long run, it is imperative to invest money properly. Your house help might not be all that familiar with this idea. You can tell them about secure ways like fixed deposits or new bank schemes where they can invest and get a good return. It is possible that they do not know how to decipher the conditions on some documents or are unaware of the procedures to acquire such investments. You can offer to accompany them to their bank or other financial institutions and making them feel more secure while making these decisions.
Saving A Small Percentage Of Their Income This step is imperative for all the house helps; as soon as they get their monthly salary, ask them to keep some amount from it in a safe place at home or in an account in the bank. For that, ask them to open a savings account. If they don’t know how to do it, you can help by bringing the form and instructing them on how to fill it up.
The Bottom Line So, these eight tips that are mentioned above will help you improve the financial status of your house help. After all, who wouldn’t want to live a life of security and dignity? They are working hard to make their life better. Thus, whenever you see your house help in some financial problems, talk to them. A little help and guidance from you can really turn their lives around.