Gone are the days where the man was expected to be the breadwinner and the financialhead of the family. Times have changed. Todays generation of young and independent women have made massive strides in their personal and professional lives.However, being among the grow-ups in the family also means being responsible with your finances. To all the millennial working women on the road to self-discovery, you do not have to choose between the occasional shopping spree or enjoying with friends while saving for retirement. With careful financial planning, you can plan for the future while enjoying your present. Rs. 1,50,000Or to rephrase this title of a bestseller,Men buy shares from Mars and Women have a savings account on Venus.
just like charity, financial inclusion begins at home. While women can start learning and investing in better ways, men have to take the onus of involving women of the family in financial decisions. Financial planning is as important for women as it is for men. While homemakers are unaware and reluctant to save in options other than the traditional methods of saving, metropolitan working women are just stuck with the thought of investing inmutualfunds, but are unaware on how to go about it.
The art of investing:
- Learn and unlearn: educate Each step takes you closer to the destination. Therefore, start reading up on the various financial instruments and investment options. Do not wait to be taught the art of investing. It is your money, so take charge. Attend personal finance workshops and download wealth management apps. This is the first step which will help build a good foundation for your financial life.
- Start investing with small amounts You cannot reach the summit of Everest on the very first day. You will not even reach half way without effort, patience and planning. So, start by investing in a few low-risk options like Public Provident Fund (PPF) and Recurring Deposits (RD). The minimum investment amount is as low as Rs 500 a year. PPF offers Section 80C tax benefits, up to a maximum of Rs 1,50,000 a year. You may also invest large amounts in tax-saving Fixed Deposits (FD).
- Get adequate insurance : Women in India tend to have a higher life expectancy and also greater chances of developing lifestyle diseases. Then why avoid health insurance? A family floater health insurance plan is great, but it is not enough. When it comes to life insurance, typically only the husband buys a life cover. But, what is the harm if a working woman avails a life insurance plan? Irrespective of whether you are a man or a woman, a life or health insurance plan ensures the financial security of your family. It also offers tax benefits.
- Let your portfolio evolve: Explore investment options like SIPs (a method of investing in mutual funds), mutual funds, equities, and so on. These investments give you compounding benefits. Remember to educate yourself before actually investing in these options.
- Monitor your portfolio: Starting is one thing, continuity is another. Therefore, make sure you continually monitor your portfolio. Managing investments requires patience and knowledge.Keep updating yourself. Modify your portfolio if necessary. Realize investments which are not doing well. Invest in well-performing investments. As you realize greater returns, increase the amount of investment in emergency funds,retirement fundsand children education funds. These are the steps to financial freedom; the sooner you take them the better.