Happy Women’s Day 2024: How women can achieve financial independence – Money News

Financial independence is not just about earning money; it’s about having control over one’s finances and future. The significance of women’s financial independence cannot be overstated. It not only provides economic stability but also empowers women to make decisions that shape their lives on their terms. Achieving financial independence is crucial for women to lead successful lives.

Financial independence means women can support themselves financially without relying on others. It involves earning an income, managing expenses, saving, and investing wisely to secure one’s financial future. It provides women the freedom to pursue their goals and aspirations without being limited by financial constraints.

Invest In Education

Investing in education and acquiring relevant skills is the foundation for achieving financial independence. Women should pursue higher education, vocational training, or certifications that enhance their employability and earning potential.

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Career Advancement

Women should actively seek opportunities for career advancement, including promotions, salary negotiations, and skill enhancement programmes. Building a successful career not only increases income but also opens doors to leadership roles and greater financial stability.

Entrepreneurship

Starting a business or freelancing offers women greater control over their earnings. With the advent of digital platforms and supportive initiatives for women entrepreneurs, starting a venture has become more accessible than ever.

Financial Literacy

Understanding financial concepts such as budgeting, saving, investing, and debt management is essential for achieving financial independence. Women today are educating themselves through workshops, online courses, or seeking financial advice. Financial literacy is crucial for women build their investment portfolio based on their needs.

Savings and Investments

Setting aside a portion of income for savings and investments is crucial for building wealth over time. Women can explore various investment options such as mutual funds, stocks, real estate, and government schemes like PPF and NPS to diversify their portfolios and generate passive income.

Insurance Coverage

Life and health insurance hold immense significance, offering crucial financial protection and peace of mind. Life insurance provides a safety net for dependents in the event of the policyholder’s demise, ensuring that loved ones are financially supported. For women who often play multiple roles as caregivers and breadwinners, life insurance is vital to safeguard their family’s future.

Similarly, health insurance is indispensable, covering medical expenses arising from illnesses, accidents, or maternity care. As healthcare costs are rising steadily, having health insurance shields women from the burden of exorbitant medical bills and ensures access to quality healthcare services.

Retirement Planning

Planning for retirement early ensures a comfortable and financially secure future. Women should contribute to retirement accounts such as EPF, Public Provident Fund (PPF), or voluntary retirement schemes and explore other retirement planning tools to build a nest egg for their golden years.

Tax Saving

Women have several avenues to maximise tax savings and enhance their investment returns. Investing in schemes like PPF, National Savings Certificate (NSC), and Sukanya Samriddhi Yojana can help tax deductions under the Income Tax Act. The equity-linked savings schemes (ELSS) can offer tax deductions while providing the potential for higher returns compared to traditional investment options. These steps can help women reduce their tax liabilities.

By empowering women to take control of their finances, we create a more inclusive and prosperous society where everyone has the opportunity to thrive. Through education and financial management, women in India can chart their own path to financial independence and inspire future generations to do the same. Let us continue to support and uplift women on their journey towards economic growth.

(The author is CEO, Bankbazaar.com. Views are personal)