What is the Meaning of Financial Freedom for Women

Women play a variety of roles in their lives, What is the Meaning of Financial Freedom for Women?: devoted daughters, adoring sisters, loving wives, and nurturing mothers. Many women are also stepping out of stereotypical roles to make a career and shoulder family responsibilities. They have made their mark in every field, whether it is sports, law, medicine, business, politics, or anything else

As a result, when it comes to investing their hard-earned money and planning for the future, many women rely on the men in the house – their father, husband, brother, etc. However, there is an age-old fact that women are better managers of their hard-earned money than men.
If you are a woman reading this, you can handle your own finances and plan for your future. You do not have to be dependent on others for your financial well-being.

Today, a substantial number of fund managers in India’s mutual fund industry are women.

Here’s how you can work your way to financial freedom. Follow the below steps to become financially free.

Set your financial goals

There are many financial goals – owning a home, buying a car, providing the best education to our children, getting them married in style, taking a family vacation, retiring, etc.. It is important that your goals should be S.M.A.R.T (Specific, Measurable, Adjustable, Realistic, and Time-bound).In addition, you classify the goals based on the amount of time left for achieving them into short-term, medium-term, and long-term. It is important to keep in mind that investing is an individualistic exercise.

Invest systemically every month through SIPs

Investing consistently and systematically is necessary if you want to achieve your goals.It is worthwhile to plan goals with a systematic investment plan (SIP).Choosing the best mutual fund scheme to contribute to is all you have to do. You would be able to practice saving and investing regularly (daily, monthly, quarterly) and make it easier to manage your finances.
It is good to allocate the investible surplus to different asset classes (equity, debt, gold, etc.)

Given the fact that not all asset classes move in the same direction always, allocate the investible surplus to different asset classes (equity, debt, gold, etc.)

Keep an emergency fund

It is important to have an emergency fund to face an unexpected situation we are living in, always keep an adequate emergency fund.

Insure yourself parallelly

It is always good to have an emergency fund, keeping insurance coverage for entire family is essential.
Know all about the family’s sources of income such as salary, business, investment, rent, etc. Also, financially keep updating yourself.

An investment in knowledge pays the best interest,” said Benjamin Franklin

Women investors are always interested in safe earnings, So it’s better if they can invest in tax saving funds which offer higher returns than others as well as it save income tax to an extent. So investing in tax savings funds are good options.
If you don’t want to invest for longer period like 3 years / 5 years in tax saving funds then you can go with Short term funds which gives higher returns than saving accounts, recurring deposits or fixed deposits.
If women wants to invest for longer period than Equity Funds are the best bet for investment with medium risk. It helps in creation of wealth over the long period of time. You can start with small amount and when you have enough income than gradually increase the investment.
In last, If you are interested in saving income tax than ELSS funds are the best option. ELSS Funds save income tax under Section 80C and along with tax saving it also helps in growth of the money. It offer flexibility in investment under lump-sum amount and monthly sips.

Thanks for Reading. If you like this article please share with your women friends.

Source – Value ReSearch