Be a financially independent woman by making your money work hard for you.
Women are trying to do it all – They are excelling at academics and arts, they are earning well at their jobs while balancing the household responsibilities like a boss, they are breaking the glass ceiling through whatever they choose to do. But when the insurance company calls them to renew their policy, invariably their response is: “My husband handles the finances. Could you please speak to him?”
According to an ET report, a whopping 92% of women admitted that all financial decisions are taken by the male members of the family. Women take charge of their finances only when they are left with no other alternative and run helter-skelter during an emergency.
The independent woman has freed herself from various stereotypes, and now financial liberation is the next step. So, here are a few ways to take charge of your hard-earned money to improve your financial well-being:
Improve Your Financial Literacy
For women, being knowledgeable about financial management is crucial and you don’t need a finance degree for it. Educate yourself by reading finance columns and blog articles available online. You can also make space for a few budgeting and investments books on your shelf. The goal is to be able to make informed financial decisions yourself.
Set a Budget and Track Your Expenses
It makes good sense to have a grip on your expenses. An independent woman should allocate her income in a 50-30-20 ratio. Around 50% of the earned money should be spent on household expenses and necessities, about 30% should be used for self-care and leisure activities, and 20% of it should be invested depending on your financial goals. These numbers, however, might vary as per your priorities.
Start a Small Business
Become a woman entrepreneur. Women are skilled at so many things including multi-tasking. From baking to designing apparel, women are raising the bar of entrepreneurship all over the world. While it may seem like a big deal, know that starting your own business gives you a sense of ownership of your finances and will enhance your money management skills. Don’t worry about the capital, as many initiatives provide business loans for women entrepreneurs.
Plan Your Investments
Identify your goals and plan your short-term as well as long-term investments. The power of compounding is amazing, so commit to it with patience and you will see the returns. Starting young is an added advantage to planning your emergency fund. Understand and explore mutual funds, stock market, IPOs, bank policies, digital gold, etc. to build a diversified portfolio.
Plan For Your Retirement
Amid juggling a hundred things, women often forget to take care of themselves. Save or invest while you can as every penny saved today will ensure a stable future tomorrow. Plan for your retirement in a way that you don’t have to depend on anyone for money.
By learning how to manage large sums of money, you can support yourself independently in the future or during an emergency. In today’s ever-changing economic climate, a woman must have complete control over her finances and be able to take important financial decisions herself to reach her financial goals.