Why women must take care of their finances

When it comes to money matters, women are always considered inferior to the male. Although times have changed and we are living in the 21st century but even then women are dependent on their fathers, brother or husband for their finances. Irrespective of gender, financial planning is important for everyone.

Although there is no doubt about the fact that today’s women have come a long way in bridging the gender gap from the kitchen to the boardroom. But, when it comes to finance, somehow they take a backstage. So what is pulling them back? Are men financially more literate than them? Well, some personal finance experts believe that it’s perhaps just a matter of breaking some stereotypes. The more they start learning about personal finance, the more confident they will become. After all the journey from the kitchen to the boardroom was not a cakewalk for them.

Today’s women need to be more confident and aware of their finances for a variety of reasons

Know what you own

How often do you come across women who are well aware of all insurance and investments done by their husbands? In many cases, male members don’t share such details proactively but even if they do, women aren’t much interested. This attitude needs to be changed. There are many instances where the earning member died prematurely but the family members couldn’t stake a claim to the death benefit of his insurance policy simply because of the lack of awareness.

Take charge of your finances

Statistically, the life span of women is more than men’s, and there are several reports highlighting that women earn less than their male counterparts. As per the World Economic Forum’s Global Gender Gap Report, 2021, women’s estimated earned income in India is only one-fifth of men’s, which means that women earn significantly less for the same earning years as men, while they need to save a lot to ensure they meet their needs.

Make retirement a top priority

Women put others’ needs first and ignore the idea of a retirement plan. But they should selfishly think about their long-term needs and invest wisely for their retirement as they tend to live longer than men.

Don’t just save, start investing

It’s a well-known fact that women are better organised and good at savings. They are budget masters as the task of monthly budgeting lies on their shoulders. They tend to save money from the funds allocated for their monthly household kitty. Saving is good but they should learn to master the art of investment. Well, there is a saying it’s never too late. So, start today. To begin with start with fixed deposits( FDs), recurring deposits (RDs), and post office small savings schemes. Slowly and steadily you can move to mutual funds, start a SIP and even try your hands in the stock markets. Well, investing in the stock markets is very risky, so before you want to take a dive into Dalal Street, it’s important to know about it and be mentally prepared to book huge profits and sometimes losses too. The whole thing depends on how you strategise your funds.

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