Finance & Investment

8 easy tips for women to achieve financial freedom

Women in India face tremendous societal pressures and expectations that can challenge their independence and sense of worth. Women are often expected to prioritize their family’s needs over their own, which can impact their financial decisions. For instance, women may choose to prioritize their children’s education over their retirement savings, which can lead to financial stress in the future. They must strike a balance between their familial responsibilities and their financial goals. They must ensure that they are investing in themselves and their future, without neglecting their family’s needs. Whether you’re single, married, or divorced, navigating these challenges can be tough.Also read: Top 6 investment options for women in India

Overcoming Challenges and Achieving Equality

Women face unique challenges on their path to financial equality. The gender pay gap means you might earn less than your male counterparts, even when you hold the same qualifications and work in the same industry. This disparity can significantly impact women’s personal finances, making it harder for them to save and invest for their future, and notably make strategic financial planning even more crucial. As a result, it is crucial for women to negotiate their salaries and ask for what they truly deserve.

Also read: Meet women who learned to manage finances and now drive the investment decisions of families

Additionally, a lack of financial knowledge and societal norms can sometimes discourage women from taking charge of their finances. Remember, financial independence is not just for some women; it’s for all women. Break free from stereotypes and empower yourselves financially. This is the first step towards achieving true equality and autonomy in your lives.

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Building a Secure Foundation

Financial planning for every woman, regardless of marital status, should prioritize both the present and the future. Here are some key steps to get you started:

  • 1. Create a Budget: Track your expenses and create a monthly budget based on your income, fixed costs, and discretionary spending. This helps you identify areas to save and invest.
  • 2. Build an Emergency Fund: Aim to save at least 6 months’ worth of living expenses, if not more, in a separate account. This acts as a safety net for unexpected emergencies, ensuring you’re prepared for difficult times.
  • 3. Get Adequate Insurance: Protect yourself and your loved ones with proper insurance coverage for health, life, and expensive assets like your home and vehicle. This prevents financial strain in case of unforeseen circumstances.

Investing for Growth and Security

Building long-term wealth involves exploring investment options aligned with your risk tolerance and financial goals. Here’s how to get started:

  • 1. Diversify your portfolio: Invest in a mix of assets like mutual funds, fixed deposits, and government schemes like PPF and NPS, as per your risk profile and financial goals. Start small, even with Rs. 1,000 per month through a Systematic Investment Plan (SIP) if that is what you can afford for now. The crucial part isf to start now and not delay.
  • 2. Consider multiple income sources: Explore options like part-time work to increase your financial resilience and growth potential, or being a part of the omni-present gig economy if you have the time and inclination.
  • 3. Invest in yourself: Enhance your earning potential by taking vocational courses or developing new skills. This is very crucial – keep reinventing yourself.

Remember, by taking these steps, you’re paving the way for a secure and prosperous future.

Also read: How single women can become financially independent

Planning for a Secure Retirement

As a woman, you may not have the same traditional retirement support system as others. Therefore, taking charge of your retirement planning is crucial.

Here are some tips:

  • 1. Start Early: The earlier you start investing, the more time your money has to grow through compounding. And compounding has huge benefits which most of us do not appreciate when we’re just starting.
  • 2. Invest Wisely: Choose assets with good long-term returns, like equity mutual funds, while diversifying your portfolio to manage risk.

Taking Control of Your Future
In addition to these financial steps, consider creating a Will to ensure your wishes are met and your loved ones are cared for in your absence.

Remember, financial literacy and planning are essential for all women, regardless of their marital status. Take charge of your finances today and build a secure and fulfilling future!

International Women’s Day is a reminder of your immense strength, resilience, and worth. As you embark on your journey towards financial empowerment, remember, you’re not alone. Every woman deserves to thrive, prosper, and secure a future filled with hope and possibility.

Let’s celebrate your strength and resilience!

Let’s embrace the opportunity to take control of your financial destinies and pave the way for a brighter future.

(The author is Certified Financial PlannerCM, CEO, Hum Fauji Initiatives, a financial advisory firm.)Whatsapp Banner

(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)

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