Tips For Pakistani Women To Becoming Rich Without Cutting Down On the Beauty Budget

Tips For Pakistani Women To Becoming Rich Without Cutting Down On the Beauty Budget
April 27, 2017 Mrs. K Compare

Look-Good-Invest-Better tips for pakistani women to becoming rich without cutting down on the beauty budget - Look Good Invest Better - Tips For Pakistani Women To Becoming Rich Without Cutting Down On the Beauty Budget

Do you know that luxury products including cosmetics and beauty products in Pakistan are largely imported? That is because we have very few local manufacturers and brands. This import amounts to PKR 150 billion with an annual increasing rate of 15%. This means that we are utilizing these products and this encourages import. That is not necessarily a bad thing. It does mean however, that we have been spending money on beauty products and services which comes at an opportunity cost.

Every woman likes to be pampered and feel good about herself. Salons provide several packages and services that any potential client can opt for. This can range from hair treatments to facials. The average salon offers services and packages that can be heavy on the pocket, although this depends on the salon and locality you frequently visit. There is a definitive price differentiation. We usually don’t realize how much money we are spending on ourselves, because these expenses are incurred over a period of time rather than instantly. The outlay is low but adds up in the year.

Beauty parlor visits have become the norm for the average working woman, the housewife or those that are just visiting the country. The urban woman is happy to pamper herself and with a little nuanced financial knowledge, this spend can turn into opportunities to save. The urban woman can cutback a little and realize the opportunity cost of the visits to the salon.

Dare we try to put a price to beauty?  We conducted an informal research among a sample of our target audience, where we mainly inquired about the services that they most regularly use and their related costs. We have come up with some facts and figures for you that can help you understand what we mean when we say opportunity cost.

Annual Cost of Your Beauty Regime:

Item

Average Price (in PKR) Quantity per Year

Price Per Year

Manicures and Pedicures

1,500

24

36,000

Hair Coloring

3,000

6

18,000

Hair Cutting

3,000

3

9,000

Facial Treatments

2,500

12

30,000

Other Treatments

5,000

6

30,000

Total    

123,000

So, an individual is generally spending an average of PKR 10,000 to PKR 15,000 on a monthly basis. Of course, some of these expenses are considered important while others may be a little frivolous depending on how you may look at it.

Assuming that half of this budget can be cut down, let us now evaluate how much return this sum of money can give us. For PKR 5,000 a month, or PKR 60,000 a year, you can:

  1. If you collect PKR 5,000/- in a money box every month, you will have PKR 60,000 a year, and PKR 900,000/- by the end of 15 years.
  2. Save and invest in saving certificates. Currently, saving certificates such as Defense Saving Certificates give you an annual return of 7.44%. So, if you did nothing and just purchased one certificate worth PKR 5,000/-, in 15 years, you would have approximately 10,910/-. Now, if you continued to invest PKR 5,000/- on a monthly basis in the same certificate, your return at the end of 10 years would be: PKR 874,906/- as Defense Saving Certificates have a maturity of ten years. There are other saving certificate options that you can choose from as well such as Special Savings Certificates (3 years maturity with annual profit of 5.8% for first five profits and 6.2% for the last profit) and Regular Income Certificates (5 years maturity with annual profit of 6.36%).
  3. Save in Gold. The past 30-day trend shows gold prices have risen by 1.38%. If this trend continues, your savings would be PKR 998,622/- in the next 15 years.
  4. Save in a money market mutual fund. If you continued to invest in a money market mutual fund for the next 15 years, your monthly PKR 5,000/- could sum up to PKR 1,555,524/- at the end of 15 years (if you invested in Faysal Money Market Fund for the next 15 years, and the profitability averaged at 7% per annum as it is today).
  5. Invest in stock mutual fund. For example, if you put away PKR 5,000 a month in a stock mutual fund over the next 15 years and earned on average a return of 20% per annum you could end up with approximately PKR 5,671474 over 15 years. Pakistan Stock Exchange has been classified as the top performing stock market in the entire of Asia, and fifth in world rankings.

Maintaining a beauty regime with high quality products can be expensive. But you can always work your budget around depending on items and services that you buy. Planning to invest your hard-earned money? Keep reading our blog for more tips, tricks and helpful insights.

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