By Priyanka Bhatia,
In India, salaried women frequently encounter distinct obstacles when it involves saving and investing. However, when they adopt the ideal strategies, they can definitely change their financial status. The following are a few important tips for salaried women using which they can certainly be financially independent.
1. Automate Savings
Automating the savings is not only one of the easiest but also effective ways. A working woman can set up an “auto-transfer” from their salary account into a different investment or a savings account. This will make sure that a certain part of their income is saved even before they get to witness it. The ideal situation would be to save at least 20% of their salary every month.
2. Structutre a plan for your finances and stick to it
Planning of your finances properly ensures your control over them. Simultaneously, continuously monitor your income and expenses to comprehend the flow of your finances. Using budget tools or basic tables can be useful because you can figure out manage your expenses with the help of these. Focus on the important costs and identify areas where you can reduce your spending.
3. Mutual Funds investment
For salaried women mutual funds are an excellent investment option. They provide a variety of options, expert handling, and the possibility of earning more than with standard savings accounts.
Mutual funds are an excellent option to consider, especially for salaried women. With these, you will have a wide range of options, expert management of finances, and opportunities for additional earnings as compared to normal savings accounts. Consider starting with Systematic Investment Plans (SIPs) in equity or hybrid funds, which allow you to invest small amounts regularly. But, first, learn the step-by-step method to pick good quality mutual funds without depending on anyone in your life.
4. Educate Yourself
You must be financially educated if you want to make effective investment decision. Use resources such as Women on Wealth, where you can participate in several webinars and programs related to creating wealth, how to select mutual funds, knowing how to choose quality stocks, etc. If your concepts on finances are clear and you have a sound knowledge about the investment options, you can always take the best financial decision for yourself.
5. Emergency Fund
An emergency fund will always be your protector whenever you are in a financial crisis. Consider creating a fund which can cover you for at least of your expenses spent in living. Make sure you can access the fund easily and keep it liquid and in a high-interest savings account so that it’s available to you whenever necessary.
6. Retirement Planning
If you start to plan your retirement early, it will then significantly impact your financial status. Consider to invest in schemes such as the EPF or NPS. Such schemes will not only offer your tax benefits but will also make sure that you are secured as far as our financial stability is concerned.
7. Diversify your Investing
You must not be one dimensional in your investment. It’s always ideal to diversify your investment in several asset classes, such as bonds, stocks, gold, real estate, etc., so that you can expect a good potential ROI. If you spread your investments in different areas, then even if face a risk of loss in one sector, that can be managed by a strong rise in other.
8. Be Part of Financial Communities
Being a member of financial communities, such as the Women on Wealth community, offers support, encouragement, and access to valuable insights from other women who share similar financial objectives. Participating in seminars and talks can enhance your understanding of finances and boost your self-assurance.
9. Make sure your Financial Objectives are clear
When your financial goal is set, you can always create a focused strategy for investment. Irrespective of buying a house, arranging finances for studies, or starting a new business, a clearly set goal will always direct and motivate you. Break your objectives to short, mid-term, and long-term goals and adjust your investments and savings according to the situation.
Getting Started: Your Better Plan to Success in Investment
1. Evaluate Your Financial Position: The first step must always be to set a financial plan and understand your position on the cash flow cycle. Calculate the amount of money that you can be ability and willing to invest each month.
2. Establish Definite Objectives: What do you want to save for? Will you be using it for a new home purchase, retirement, or your child's education? Understanding your objectives is essential for determining where to invest and developing a sensible plan in accordance with them.
3. Emergency Fund Creation: Before you start to invest, create a separate savings account and save 3 to 6 months of your living expenses in that fund. Make sure you can easily access it when you need them.
4. Investigate Investment Options: Learn about the different types of investments such as the ETFs or Exchange Traded Funds, mutual funds, shares, debentures, etc. This means that there is a need to understand the risk-return characteristics of one against the other.
5. Begin Small, But Begin Now: Do not have a lump sum investment plan, where you invest a large amount at once. This implies that eradicating poverty would be a challenge since even small amounts invested early through compound interests will have grown to large amounts in the future.
(The author is Co-Founder & Lead Consultant, Women on Wealth. Views expressed are the author’s own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.)
