Financial tips to empower women
HYDERABAD: Financial planning is essential for each and every person who earns. However, women who earn at times do not have a say in the management of their own money. While power dynamics between genders decide who gets to earn and spend the money generated in households, it is essential for each earner to know how they can safeguard their own earnings for a secure future. Here are a couple of tips shared by city-based financial advisors, for women to take care of their earnings.
“For women to truly feel empowered, embracing financial planning is essential. Despite their multitasking abilities and work-life balance, many women shy away from making decisions about personal and family finances. However, a positive shift is underway, with more women, homemakers and working professionals alike, adopting a pragmatic approach to financial planning. This has led to several benefits, both in strengthening relationships with life partners and navigating challenging times like divorce,” says Sangeetha R, Personal Finance & Investment Strategist.
She adds that as women become knowledgeable about money management, budgeting, and investing, they actively participate in financial discussions and decisions, earning mutual respect within the relationship. Moreover, couples can together set and achieve shared financial objectives, such as, “saving for a dream vacation, buying a home, or planning for retirement. By discussing income, expenses, and investments openly, trust and transparency are fostered between couples,” said Sangeetha.
What is a financial plan?
Sangeetha says that a comprehensive financial plan includes “A sound risk management strategy, such as building an emergency fund and obtaining adequate insurance coverage. This provides security and peace of mind for both partners in unexpected situations, like job loss.”
What is essential for women to know is how to take care of finances when they are dealing with hard times such as a divorce. “While no one anticipates divorce, being prepared is wise. Many women end up paying the liabilities of joint loans but don’t get a fair share in marital assets as they are not financially and legally aware. Women involved in financial planning are better equipped to protect their interests, negotiate fair settlements, and secure their financial future during divorce proceedings,” she said.
Lastly, women have the right to pursue their dreams and financial independence helps them take risks. “Pursuing Financial Independence To Retire Early (FIRE) allows women to take sabbaticals from their regular jobs and explore their passions. Knowing they are financially secure enables them to take career risks with confidence,” concludes Sangeetha.
Tips for financial planning:
Ravi Kiran Monigari, Certified Financial Planner says that women, who are born money managers, can go from managing household budgets to becoming financially independent if they possess the traits of being risk-aware, disciplined, and making informed financial decisions. He shares the following points for women to keep in mind while taking care of their finances:
