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Key Takeaways
- Financial Freedom means differently to a woman since she is more cautious and yearning for this space
- Women are naturally endowed with patience and can be potentially smart investors
- Women are more family-oriented and conservative and can thus perceive and use money more sensibly
- Women have started taking finance matters into their hands not depending on parents or spouses
- Their inclination towards asset building is considerable
- Women are more submissive and so their risk-bearing appetite is not as high as men which can result in low returns
Introduction
Know a friend who was swallowed up with domestic liabilities and had to quit her job for some time and after years of financial independence was dependant on her husband or father for money? Or yet, remember the global recession that happened in the year 2008? Life is more random than one can imagine and it can get intimidating on many occasions. Being the woman of today’s time, you need to buckle up and prioritize your finances cleverly and from an early age. As women, you are bestowed with eternal patience and it is time you use this power to make investments work for your benefit. Now is the time to confirm independence and to start securing future on your own terms. But how and why to start and what to know, three important questions that need answering and this is what you will find further in this blog.
Invest Versus Save
Savings is risk-free alternative for money and caters solely to short-term goals. It is wealth put aside in banks FDs (Fixed Deposits) or RDs (Recurring Deposits). Conversely investing is a form of growing money for a regular income or long-term wealth accumulation. This strategy comes along with certain risk levels since capital is put into stocks or bonds (on a broader level) which are subject to market volatility nonetheless are more rewarding.
Money-conscious Attitude
With changing times, a woman’s attitude towards money is changing as well. These days’ women are dealing in property investments autonomously without any financial help from fathers or husbands. They have their own cars and are handling loans wisely.
Budding Family-orientation
During the medieval era, women were not educated or earned wages and so the man of the house stayed in control. However, with evolving times, women are more independent and for this reason have inculcated a growing sense of responsibility towards their parents. Furthermore, women are better capable of managing household expenses and are growing keener in contributing towards home expenses along with their husbands.
Sense of Space
It leads to more confidence when you can buy for yourself and not depend on anyone to fulfil basic or leisure needs. The era of ‘pocket-money’ is over with girls starting to work along with their studies. If earning has gotten to women at such an early age, so should ‘investing’.
Better Control
The world stays in better control with a confident woman leading it. It is in our involuntary Indian psychology to respect independence more. Women have their own voice today and so it is important they look for ways to secure this feat.
Key is to Start Early
Got your first job after graduation? Great, start investing now. There is no thumb rule to invest at a certain age of 25 or 30. As women, you need to understand that, your investments must begin as early as your first job. Begin with putting aside a small sum (at least 10% of your monthly income) initially. With every pay raise, add to portfolio, whether mutual fund investments, stock investments, SIP or any other. This way you successfully inculcate a savings-attitude and learn financial management early-on.
Understanding Compounding
The earlier you begin the more money you save in the long run. This is the power of compounding. With a mere Rs. 1000 a month, you can sum your savings to a substantial amount and in this process, even 10 years implies a major difference in wealth gain.
Quick tips on being financially aware:
- Ask questions. More you enquire, more you know and better investment strategies you can pursue.
- This is the information-era, make most of it and perform a thorough analysis at an individual level in terms of financial instruments available.
- Keep a track of financial benefits provided by your company, like retirement plans, insurance, etc.
- Move towards asset building for superior capital appreciations like investing in real estate, buying gold and other valuable gems, etc.
- While it is clear that gold and diamonds are your best friends, start choosing more money-spinning schemes like Gold ETFs and Gold funds. Get in touch with a reputed financial advisor for detailed information.
Today, the country is seeing a larger number of financially independent women and many of them are far more career-oriented than before. If earning has emblazoned a woman’s couture, investing will let her splendour last!
