With changing scenarios, women are making their mark professionally and becoming financially independent. When women start earning, it becomes all the more essential for them to start investing to take charge of their money and create wealth using their savings.
With knowledge comes confidence. Hence, women need to learn the basics of personal finance and money management. It is the only way to overcome your doubts and fears and participate in investment decisions. There are numerous online resources from where you can learn the basics of investing.
Getting involved in household investment decisions can be a great place to start. Ask questions, and read books and newspapers. With the multitude of digital platforms, you can start investing with just a few clicks, with help available at every step.
Setting goals is the first step in investing. You can have short-term, mid-term, and long-term goals, and you choose investment options according to your goals. Once you identify the purpose of your investment, it will be easy to create an investment plan accurately. In addition to setting goals, you also need to assess your risk profile which plays a vital role in selecting an investment option.
Before you start financial planning, first assess your current financial situation. This includes calculating your net worth. Calculate your inflows and outflows, and you will get an idea of how much you are left with to start investing and how much risk you can bear. This will also help you in asset allocation.
Retirement planning is most crucial for women. Generally, women live longer than men and thus, need more money for retirement. The earlier you start your retirement planning, the better it is as the compounding adds to your retirement corpus. Set aside at least 10% of your salary for a retirement fund. Build an emergency fund that allows you to survive for three months without a paycheck. Also, invest in a good health insurance plan so that you’re able to cover your medical expenses in old age.
If you are a beginner and not so sure about planning your finances, seek professional consultation. A professional will prepare a financial plan for you depending on your goals, risk appetite, and anticipated returns. They will help you invest systematically. Once you get an idea of how to start and maintain your investments, you can take charge and manage your finances.
If you have not started investing your savings, do not hesitate to start, not just for creating wealth but also for your own family. Financial planning and money management truly empower women as they track their money and achieve their goals. Your financial decisions will influence your children and other women in your family, making them all learn the importance of investing.
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