Women’s Day 2025: How Women Can Ensure Financial Independence

Proper financial planning not only helps you achieve your various financial goals but also helps you efficiently cope with unforeseen situations. In view of this, it is important for every woman to become financially independent and make smart money choices. Financial independence simply means being able to make financial choices that will help you live the way you want.

Women are well capable of taking their own financial planning decisions and don't have to depend on anybody. Every woman whether married, single, widowed, or divorced should strive to achieve financial independence.

Why it is important for every woman to attain financial independence?

• If the breadwinner of the family faces job loss, pay cut, disability due to illness/accident, etc., it can impact family income. Financial independence can help you to sail through those difficult times and fulfil the needs of your family.

• Cost of living has risen over the years and the escalation will continue in the future. It can help if women can contribute not just towards household expenses but also in fulfilling family goals.

• Financial independence enables you to take various decisions in life confidently. You will have the freedom to pursue your dreams and ambitions without having to depend on anyone.

How to ensure your financial independence?

1) Take Steps to Become Financially Literate

Women encounter many obstacles ranging from psychological, social, and cultural, that impede their financial literacy. But it is never too late to learn something new. To begin their financial literacy journey one can start by reading/browsing blogs related to basics of managing finances in daily newspapers or the internet. One can also opt for finance-oriented videos and podcasts that can help you stay updated on ways to save and manage your money. One can also attend various financial literacy camps organised from time-to-time by government or private entities as well as NGOs as a part of their social development initiatives.

2) Get into the Habit of Saving and Budgeting

Having a regular source of income is a good first step to attain financial independence; but prudent financial management is equally important. Ensure that you always save a portion of income as savings. Follow these wise words of Warren Buffet, "Do not save what is left after spending; instead spend what is left after saving". This is where budgeting comes in handy.

Preparing a budget will help you understand areas where you might be overspending (for instance - dining out or impulsive purchases) as well as areas where you need to allocate more (for instance - planning for your future goals).

3) Invest Wisely

Once the habit of saving grows on you, prepare an investment strategy to meet your various short-term, medium-term, and long-term financial goals (including retirement). Select and invest in suitable instruments such as bank deposits, small saving schemes, equity mutual fund, debt mutual funds, Gold, etc., after you have assessed your risk profile and investment horizon. Ideally, the investments should be well-diversified across multiple asset classes to protect it from volatile nature of investments.

Ensure that you align your investment to each of these financial goals. This will help to stay clear from borrowing and the debt trap. Avoid taking loans unless absolutely necessary.

To remain on track with your financial goals, review the financial plan at least annually. This will enable incorporating any economic or personal changes in the financial plan to achieve the envisioned financial goals as intended.

4) Be Prepared for Emergencies

Along with investments, it is important that you maintain an emergency fund at all times to cope with unexpected situations. Ideally, you must have at least 6-12-month worth's expenses reserved as an emergency fund. The amount saved for emergency situations should be parked in liquid avenues such as bank deposits and/or short duration debt mutual funds.

Another important aspect of financial independence is to secure your health. The cost of quality health services is on the rising exponentially. Purchasing a comprehensive health insurance cover will take care of some aspects of the financial burden of any medical emergency and reduce the stress and financial worry that comes with it.

5) Get Involved in Key Financial Decisions

Women often feel the financial pinch if they are divorced or widowed, or are cheated out of their rightful legacies, or/and are rabidly mis-sold financial instruments. Thus, it is vital that women take charge of their finances.

It is critical to have your own separate bank account that only you can operate. Manage and monitor your income, investments, and assets on your own to have a sense of financial security. Avoid the rush to merge your finances with that of your spouse when you get married.

Even if you do not have your own source of income, be involved in the financial decisions of the household. Know all about the family's income from various sources such as salary, business, investment, rent, etc. Additionally, be up-to-date with premium payments for the life and health insurance cover that the family has. It is also important to know where various important documents are kept so that you have easy access to it whenever a need arises.

Final thoughts

A lot of times, the lack of awareness about personal finance creates financial insecurity. But conquer the negative feeling by taking time to learn the basics of saving, budgeting, and investing so that you make informed decisions. Before investing, conduct your own research and do not imitate your family, friend, neighbour, or colleague's decision. Moreover, do not sign any investment or any other document/form without carefully going through its features, benefits, risks, and other terms and conditions.

If you can't devote time for comprehensive research or lack the necessary skills, seek the guidance of a qualified, ethical, and unbiased financial planner.

Financial independence can help you lead a life of dignity and self-sufficiency. If this is your first step towards financial planning, the best time to begin your journey towards financial independence is always now.

Happy Investing!

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Hiral Bhuta is a Investment Consultant & Principal Officer. She is a seasoned professional in the financial services industry, currently serving as an Investment Advisor and Financial Planner at PersonalFN. With her expertise, she plays a pivotal role as the Principal Officer appointed under SEBI's amended IA Regulation. Hiral holds distinguished certifications such as Certified Financial Planner (CFP) and NISM XA & XB, complemented by a post-graduate degree in commerce (M. Com). Her primary areas of focus encompass financial planning, investment advisory, and wealth management, where she leverages her knowledge and skills to provide tailored solutions to clients. With a cumulative experience spanning five years, Hiral brings a wealth of expertise and insight to her role at PersonalFN, ensuring clients receive expert guidance and support in navigating their financial goals.
 

Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing.
This article is for information purposes only and is not meant to influence your investment decisions. It should not be treated as a mutual fund recommendation or advice to make an investment decision in the above-mentioned schemes.