Hey Woman! It’s Time to Take Control of Your Money
Women of today are different. They have gone places and made big strides in all fields. Women take charge of their career and don multiple hats. While many women go for solo trips around the world, the majority of women are still yet to take control of their finances and money. It is seen that working women, no matter how much they earn, hand over their money and their management to their husbands or fathers.
This aspect needs to change, and women need to start taking control of their money and make financial decisions.
In this article, we will see why women must take control of their finances and simple ways that can help them to do so.
Why do women need to invest more and take control of their money?
For the unforeseen future
No one can predict the future. So, it is necessary to stay prepared for unforeseen circumstances. Women need to take care of their money so that they can tide over unfavourable situations such as divorce or death of their husband.
Women are more likely to take more breaks in their career than Men
Women are more likely to take more career breaks than men to raise children and take care of their ageing parents. They may also have to give up on a good job if their spouse is transferred to another city. Moreover, getting a job after a break is not an easy task and may take several months to land in a favourable organisation or position.
Women need to save more as they are paid lesser than men
Although the wage gap may be inching closer every year, women, on an average, are paid lesser than men for the same job with the same educational background.
Women may stay alive longer than men
Data shows that the life expectancy of women is higher than men. This means that, on average, women are more likely to stay alive than men. A longer lifespan will lead to more healthcare expenses, medicines and other living costs.
Women make better financial decisions
The saving and investment style of men and women vary. Women tend to make prudent investment decisions that can contribute to their and family’s financial goals. On the other hand, men prioritise on the returns potential of their investment options.
Women focus on low-risk options
Women are more concerned about the safety of their money than returns and invest in debt options to better capital protection. These options due to their unfavourable taxation structure restricts the total amount that can be accumulated over a course of time.
Women are natural savers
Saving comes easily for women. Women can take full advantage of compounding by starting investment early.
Here are a few ways that can help women to take steps towards their financial independence
- Most women lack confidence when it comes to money matters. The first step should be placing faith in themselves and believing that they can manage their money.
- Do your homework. Read about the different investment options such as mutual funds, stocks to find out the right investment option.
- Talk with your husband and other family members. It is important to know about the financial decisions taken by your husband or parents so that you are not clueless about money in an unfortunate scenario. Make sure that your husband has added you as a nominee and you are adequately insured.
- Get help. If you are unsure how to proceed, you can consult a financial advisor who will guide you.
- Start by investing small amounts, say 20 to 25% of your income.
- Target short term financial goals. Achieving these goals will boost your confidence making you confident of taking on long term goals.
There is nothing that a woman can’t do. With a little bit of guidance and self-confidence, it is possible to take control of your money. So, this women’s day, instead of relying on your husband or father, take money matters in your hands and fulfil all your financial goals.