Women’s Day Special: How Women Can Ensure Their Financial Wellbeing

Thanks to education, skill development, and above all, the spirit to do something in life, women today are rising above societal hurdles and breaking the shackles of patriarchy. They are making their mark in every field --be it sports, law, medicine, business, politics, and so on. Some have even reached the moon and launched satellites/rockets.

Along with pursuing their chosen professions, they are also playing the roles of a doting daughter, an affectionate sister, a wife, and a caregiving mother.

However, what is disturbing to see is that when handling their finances, most women depend on their father, husband, or brother/s. They lack control over the money earned and/or do not have much say in the family's personal finances.

While most of you would be celebrating International Women's Day on 8^th March to uphold women's achievements and for empowerment, let me say that all women are well capable of making financial decisions and don't have to depend on anybody.

In the difficult times of the COVID-19 pandemic (where many families had to accept job losses or pay cuts/loss of income), it was the prudent and conservative money management approach of women -- be the innate habit of saving, budgeting, and discipline -- that helped families to deal with challenging times. It's a historically proven fact that women are better at dealing with money than men.

So, if you are a woman reading this piece, take control of your personal finances, make your own financial decisions, be involved, and accomplish the envisioned financial goals.

Avoid committing the following mistakes:

• Not getting involved in the family's finances

• Leaving it to someone else (who may be incompetent), to decide how you should manage your own hard-earned money

• Assuming that finance isn't your cup of tea

• Not keeping yourself abreast of what's happening in the world of finance.

Imagine a day when you would have to handle all money matters by yourself (for whatever reasons).

You see, money management is no rocket science. All that is required is some basic math and keeping track of your hard-earned money. And if you think you need some training or take an online course to handle money better, go ahead and enrol for it.

[Read: Why Should You Be Your Own Financial Planner?]

Keep in mind, in times when inflation or the rising cost of living is eroding the value of hard-earned money over time, lone savings are not enough.

To achieve the ultimate goal of financial freedom, making money work for you is critical.

This is where sensible investing comes into play, wherein you ought to choose asset classes and investment avenues therein in line with your risk-taking ability, broader investment objective, the financial goal/s you wish to address, and the time in hand to achieve those envisioned goals.

Making productive investments, keeping some money aside (around 12 months of regular monthly expenses including EMIs on loans) for a rainy day, having optimal insurance coverage (for both life and health insurance), and some allocation to gold (which serves as a safe haven or store of value in economic uncertainties) shall offer you with financial security.

[Read: 10 Powerful Ways for Women to Grow Their Wealth and Achieve Financial Freedom]

Even in challenging times, say you happen to outlive your spouse, or there is a critical illness in the family to tackle, loss of income, etc., it is these sensible investments and control over finances that shall help you sail through challenging times and take decisions confidently.

Do note financial independence or freedom is not the end destination; it's an enthralling journey of empowerment and self-discovery.

Hence, consciously save (i.e. pay yourself first), set S.M.A.R.T (i.e. Specific, Measurable, Adjustable, Realistic, and Time-bound) goals, assess your risk appetite, invest thoughtfully and regularly in line with those goals (not in ad hoc manner or unsolicited investment advice), complement investing and tax planning (so that you effectively save tax), and insure yourself optimally.

"Financial security and independence are like a three-legged stool resting on saving, insurance, and investments." - Brian Tracy.

Embrace financial planning and embark on the path to financial freedom to stay financially fit. Take control of your financial future.

And in case you feel help is needed, do not hesitate to seek professional guidance from a competent SEBI-registered investment advisor who can guide you in an independent, ethical, and unbiased manner.

This Women's Day, take a pledge to embark on the journey to your financial freedom.

Wishing (in advance) all the ladies out there a Very Happy Women's Day!

PS: In case you are wondering how to become that financial guardian for your family, PersonalFN's latest special initiative, the "Certified Family Guardian," offers you an exclusive opportunity to learn the finer nuances of money management.

Organised into eight modules with 24 extensive videos, the "Certified Family Guardian" will help you with all the relevant tools and learning modules needed to get better at money management. It also offers a host of other benefits to help you make informed investment decisions. Read here for complete details...

So, if you wish to enhance your financial well-being, enrol for PersonalFN's "Certified Family Guardian" programme today!

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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.