Tips For Indian Women To Manage Their Finances Independently
Women in India, in varied degrees, constantly battle work-life balance and harmony, especially in the post-marital world. It’s necessary to acknowledge that several Indian women have to make career and finance related choices and sacrifices. A big transition can have a huge impact on a woman’s financial stability: While on one hand, women who have so far been financially independent have to deal with a feeling of some sort of dependence, the ones who are entirely dependent on their spouses continue to face decision-making hurdles.
Single or married, women at some point in life have to navigate financial hurdles in one way or another. Here are some tips on how Indian women can plan and secure their finances to ensure security and freedom from financial stress:
1. Plan beforehand for life-changing situations
While women are taking matters in their own hands, it’s also true that many feel less confident than men when handling finances. Women face several life-changing situations, which most of the time they’re unprepared for. While it’s inevitable to acknowledge change, it’s even more important to plan in advance for the same.
- As a single working woman, plan beforehand for a different life scenario. It could be that you relocate after marriage, start a family, decide to take off from your work for some time, adopt a child, choose to be a single mother, or may be lose out on a job. These demand a fullproof plan and decision making ability to thrive.
- Finances can be a challenge even while having a supportive husband or family. The unpredictability of life, be it marital discord, divorce, or an unforeseen event, requires prior preparation.
2. Ensure an independent financial safety net
To ensure financial security as a woman, make sure to have a personal safety net around you, regardless of whether you’re single or married.
- Savings and investment
While saving helps cope with rainy days, investments help attain a comfortable life in the future. Yes, Indian women are capable of saving. But really, are you all saving for your individual selves? Many studies and surveys show that women are way behind when it comes to their retirement savings. Making a plan to save more and implementing it is a sureshot way for effective money management.
Invest not only in your finances but also on yourself. properties. This can be in the form of a professional training around your passion, upgrading your skills, connecting with friends, and developing a network.
- Insurance and emergency fund
It’s crucial to get one’s medical health insurance in place on priority basis. Also, before making investments, make sure you have a few months’ worth of expenses saved in an emergency fund to help you in times of need. Keeping it liquid will ensure that you can always get to your money quickly. If there is difficulty in deciding how much you need to keep in hand, consider the standard expenses you have in a month, and then estimate all the expenses you might have in the future.
- Have a retirement plan
Most Indian women are dependent on their spouses or children during old age. Having a retirement plan in place saves the trouble. Keep a retirement fund aside in the form of deposits in your own name.
3. Decide on your financial goals and review them as you go along
- Financial goals map the direction to a brighter future. Indian women, out of love, care and sacrifice are in the habit of putting themselves at the end of priority lists. Therefore, the idea of setting goals for a secure future evaporates. This needs to change. You need to set specific goals and ambitions for yourself. Money is worthless without having goals.
- The important note is to be specific. In order to create a sound plan, these goals must have both a time-frame and an amount. Once you have listed and quantified your goals, you need to prioritise them. It’s also crucial to figure out how many weeks or months there are between the present day and the time you want to reach your target.
4. Have the money talk with your husband and family
- If you are married, have the talk with your husband about finances on an everyday basis. Do this so that you both know how the money will be managed together in life.
- For most people, money is also an emotional issue. It is also deemed to represent power, love, or control, especially when it comes to relationships. Delegating financial security to a spouse, or significant other, or family makes the woman lose control over her financial knowledge. Allowing someone else to handle all of your money matters will restrict you from the financial knowledge you deserve to have.
5. Analyse your family traditions and make decisions
Most Indian women stay away from the family’s financial decisions made for festivals and functions. For instance, when there’s a wedding in the family, the men handle the maximum decisions. This not only takes away the power from a woman but also the information one deserves to know. Talking to your partner or family and resolving difficulties through consolidated effort can help a great deal. Discuss your shared goals and from there, build a roadmap. Reveal your plans and offer suggestions.
6. Set a financial roadmap for raising children
Raising children in India is not easy, and certainly not cheap. Make sure that you put money aside for your children’s education and other expenses.
7. Educate yourself and consult a financial advisor
- Educate yourself about money management and investing. There are a plethora of financial books and podcasts in the market. Whether you need help getting out of debt or developing a stronger relationship with money, there is a financial resource out there for you. Spend two hours or more monthly learning about wealth building, debt elimination, investing, and real estate. Read books or articles and attend seminars. Learn from those who handle their money well.
8. Teach your daughters and create the next generation of financially independent women
- When the country is undergoing a major shift concerning women’s rights, it’s important to note that women’s empowerment is incomplete without their financial independence. It’s significant to teach girls that their voice matters. This, in one way, develops negotiating skills among them.
- Involve them in money-based decisions, ask for their opinions, and consider the same. Talk to them about what they want to do and show them the steps they need to achieve that. Most importantly, encourage and develop a spirit of entrepreneurship in them to create leaders of the future.