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Why do women need investment and financial freedom?
- Women fulfil several roles throughout their lives, including a devoted daughter, a loving sister, a supportive wife and a nurturing mother.
Women are better at managing their hard-earned money because they tend to be sensible, logical, conservative at times, and unmoved by impulsive excitement. But since they're more prone to handle money conservatively, women may not be fully utilising the financial alternatives at their disposal or the potential for their assets to increase.
How women can pave the path to financial freedom?
Although achieving financial freedom is crucial, it's necessary to keep in mind that it takes time. It is a lengthy but wonderful journey that requires a straightforward and modest beginning. Here are 5 suggestions for women to ensure their financial independence, whether they are working women or stay-at-home moms:
1. Set Financial Goals
For women, it's crucial that their objectives are specific, and time-bound. Women must also categorise their goals into short-, medium-, and long-term ones based on the amount of time they have to accomplish them. Furthermore, the investments they make must be well-aligned with their goals.
2. Be Involved in the Finances
The more women are involved in their family's finances and know them, the better. Checking bank statements is much simpler now thanks to e-statements and internet banking. It is advised to review all their bank accounts, credit cards, e-wallets, and other financial accounts at least once every month. This will help women better manage their finances by giving them a clear picture of where the money is going. To categorise and keep track of spending, using budgeting and expense-tracking applications is an excellent alternative. It can be difficult for women to handle their finances without knowledge and expertise if suddenly the duty of the family falls on their shoulders due to an incident. As a result, understanding the family's finances is essential.
3. Start Investing
The initial baby steps towards financial objectives include saving money in savings accounts and investing in fixed-income financial products like fixed deposits and recurring deposits. Therefore, they must learn about more investment options after they've begun their investment journey, including mutual funds, Systematic Investment Plans (SIPs), gold, direct stocks, real estate, government securities, etc. Women must remember that their investment decisions should be based on their investment goals, risk tolerance and time horizon.
4. Maintain an Emergency Fund
Money that is set aside and should preferably be kept in a separate savings account, term deposit, pure liquid fund, or overnight fund. The goal here should be to keep money safe in case of an emergency rather than to generate higher returns.
5. Insure Properly
Women need to have proper health insurance coverage taking into account their personal health, their family's medical history and the state and city they dwell in, among a host of other considerations, to avoid having to use the investment that may be allotted for critical financial goals.
Final Say
Women must stay on track after setting their financial objectives and creating the savings and investment programmes necessary to meet them. The path to financial freedom is a long one, so it's crucial to have regular reviews with a dependable advisor who can help them prioritise their requirements when they encounter conflicting demands and who can push them to get back on track when they go off course.
Author: Priyanka Jain, Co-Founder & Creative Director, uKnowva HRMS
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First Published:23 Feb 2023, 06:59 PM IST
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