Increased independence means that women have more resources to make their financial decisions. As a result, an increasing number of women are taking the lead in managing from everyday finance to major financial decisions.
However, sometimes even if one is earning a huge amount, their lack of financial knowledge prevents them from becoming wealthy or achieving financial freedom.
We call this the "money gap" between what you might be earning and your financial decisions. Today we'll be filling all these money gaps by giving you tips to take control of your money as a woman regardless of your income, earnings or professional status.
Get involved in money matters
As a woman, you are no less of a decision-maker in your family. So don't take the backseat when it involves family's financial matters. Involve yourself in investment decisions, monthly budgets, savings plans, retirement planning etc. Whether you are a homemaker or a working professional, a part of your budget is always spent in the form of bills and expenses. So you need to understand where all your money goes. It's equally important to understand and find solutions during the financial tensions.
Invest for yourself
Knowledgeable women make better financial decisions: The key difference between a wealthy woman and a not-so-wealthy woman is their knowledge about their money. You must learn about your open avenues to grow your savings, open assets you can invest in and your risk profiles. Instead of letting husband, family or father invest for you, take charge and invest for yourself. Also, make sure to find investments that enable you to create your own assets.
Related: What is a risk profile?
Use tools to understand investment returns
It is not enough to set financial goals and invest. You must regularly track and monitor your investments. With various tools available online, you can manage and track cash flows, profits and losses in your financial life. Use salary calculators, PPFs, EPFs etc to track your investment returns.
Related: How to plan Financial Goals
Know your financial rights
Regardless of your income status, women need to know their financial rights. This not only keeps you educated but also comes in handy during a financial crisis. Financial rights mean knowing your entire wealth and ecosystem around you. As a woman taking control of your money, you must know what you are entitled to, what are your maternity benefits, yearly raises, life and health coverage and other financial benefits that your organizations must offer.
Similarly, if you are a woman going through a divorce, you must be informed about your settlements and entitlements after separations. You can take advice from financial advisors or even your lawyer about the same.
Know your liabilities and risk profile
No matter what personal finance goals you have, it is important for women to be aware of their current situation as well as the vulnerabilities they are dealing with. It may not always be possible to self-assess, but if you ask people around you about your liabilities and risk profiles, it can help you in better understanding yourself. For example: If you want to start a business of your own, ask yourself these questions: Am I financially capable to meet all the expenses? Can I take risks? How much money do I have saved up for emergencies?
Put yourself first too
As a woman, you are not only responsible for your family but even for yourself. So you must take care of yourself financially. You might get involved in many obligations. But don't compromise on your personal goals. While family's financial goals are children's education, retirement planning, buying a house etc, your personal goals could be taking a yearly vacation, buying a piece of jewelry or gadget, going out with friends is equally important.
Stay informed about financial trends
It is important for you to stay updated about the latest financial trends - whether it is about taxation, insurance or investment. You don't have to become an expert overnight, but familiarizing yourself with the basics will help you make informed decisions. You can read about personal finance in newspapers, magazines or online. There are also various websites that offer free tips and advice on financial planning. Most of the relevant information can be found on top financial websites like Economic Times, Money Control, CNBC etc.
Save to grow!
When women are financially independent, they have the power to decide their future course of action or even change their lifestyles if that's what they want.
For that, start saving money whenever you get a chance. If you don't want to put a part of your savings in high-risk investments, start by saving Rs. 1000-2000 and start putting in mutual funds every month. It will fetch you some good returns and make you financially ready for achieving your personal goals.
Take control of your Personal Finance Planning and Wealth Management, Download and Install Finzard — Your Personal Financial Wizard from Google Playstore or shoot your questions on pr@finzard.com.
For more information: www.finzard.com
Written by Gouri Chowbey for Finzard
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