We often think that financial independence is about having a job that gives you enough to manage a lifestyle. But, it’s the biggest scam. Financial independence is not just about blindly earning money through the job you have but it’s about making your money work to secure your future. While it has been a norm that women in most households despite earning money do not manage finances. Either her father or her husband manages her finances which is not wrong but now when things are changing, we need to understand that every woman should handle her finances. We spoke to Vinod Singh, Co-founder and CEO of FINHAAT.to understand how every woman can start investing to ensure financial security.
Mr Vinod Singh said, “With an increasing number of women joining the workforce, there is a felt need for them to take steps to achieve financial security and independence. It becomes even more important for women living in India beyond the metros.”
How To Ensure Financial Independence
Here’s a comprehensive guide on how you can start investing early to ensure financial independence:
Financial Literacy
One of the key factors that will help in this journey is increasing financial literacy – many institutions along with the government have been making dedicated efforts to reach out specifically to this target segment running outreach camps, and media campaigns. Financial Literacy will help them develop skills that include personal financial management, budgeting, managing debt and navigating through various options available for managing risks and investments including savings and insurance products.
Identify Your Investment Identity
Investment identity refers to finding the type of investment that suits your dreams and income. There are a variety of investment options available, from stocks to mutual funds, and SIPs to FDs.
Don't Miss: Bridging the Gender Gap in Finance: Expert Advice on Fixing Modern Inequalities
Asset Allocation
It’s important to keep things simple and disciplined. Their asset allocation should be diversified and aligned with their risk profile to meet their life objectives. SIP is an excellent tool to imbibe the discipline of investing. It helps in prioritising and automating your savings. In the long term, women can benefit significantly from the power of compounding.
Don't Miss: How To Resolve Financial Conflicts Between Couples: Practical Tips And Strategies
Start Small
Most investors get disillusioned by the amount that is available at their disposal to invest. Don’t worry about how much or less you are saving (how to improve credit score) every month. Remember - start where you are, use what you have, and do what you can.
Consider Insurance
Life is unpredictable but insurance can ensure security to a greater extent. Having a good insurance policy that can take care of unexpected hospitalisation, illness etc can go a long way in managing your financial security.
Follow these tips to ensure financial independence as a working woman.
Herzindagi.com is Jagran New Media's gender and lifestyle vertical, catering to women of all age groups, helping them remain updated, on-trend and aware. To improve our performance and understand our readers' interests better, we have created this poll. This will take 2 minutes of your time, do help us out with this link.
Image Courtsey: Freepik
Take charge of your wellness journey—download the HerZindagi app for daily updates on fitness, beauty, and a healthy lifestyle!
Comments
All Comments (0)
Join the conversation