Over the time there has been a change in the gender gap at workplaces. In fact the pay gap has also been narrowed. In most urban households day-to-day responsibilities are shared by both men and women. You can even find that women are breadwinners in many cases. This proves that women are no longer dependant on anyone, i.e. they have accomplished financial independence. Well, is financial independence just limited in having a steady income source and sharing expenses with the men of the household? Not exactly. Financial Independence also means securing one’s future and building wealth to attain aspirations. Basically, when it comes to financial planning, a lot many women can be seen depending on their male counterparts to do it on their behalf. Being a woman irrespective of your marital status, whether singled or married you should take finances under your control in every aspect. Take a look at few steps given by India’s First On-call Financial Advisory Portal which women must follow for their financial well-being.
Set Goals And Save
Without any proper planning, if you blindly set a fund in your savings account, you won’t be able to earn an effective return in the short time frame. It is very important to have a time frame in mind in order to ascertain investment tenure and risk appetite. For each goal, you need to choose the best investment instrument. Let’s take an example if you want a buy a home in 10 years or have made your mind to retire in 20 years. So, these are long-term goals to be achieved over several years. This comes to a conclusion that with the greater time span, you tend to have a moderate to high risk appetite increasing the possibility of earning above average or even high returns via such options as equity mutual funds or ELSS. Again for a short-term requirement such as going on a vacation, your money can be put in low-risk and liquid instruments like ultra-short debt funds or a recurring deposit.
Investing In Mutual Fund SIPs
Mutual fund SIPs helps you to invest in a disciplined manner just as like in recurring deposit. These funds shall not be timed like the stock market. Also the risk associated due to investment in market-linked products is mitigated over time through rupee-cost averaging in SIPs. So, you would be able to earn an average annual return of 12 per cent with a corpus of Rs 50 lakh in 20 years. There is also a facility given by SIPs where you can start with a small amount of Rs 500. Based on your investment tenure and risk appetite, you can choose your fund.
Insuring Your Health
Have you been relying on your spouse’s health cover or your corporate cover? If yes, it’s time for you to purchase a separate insurance ensuring sufficient coverage. You get health coverage only at the time of your work under corporate cover. In case you decide to take a break from your career or also at the time of transition from one job to another, you won’t be receiving any insurance. By purchasing a health insurance you can protect yourself financially against any health emergency or a prolonged disease. Such insurance can take care of most of your pre and post hospitalization expenses.
Creating An Emergency Fund
In case of any financial crisis like job loss, health hazard, accident, etc, this fund safeguards you. You can invest in a liquid fund that doesn’t have any exit load in order to build a corpus worth six to twelve months of your income. Paying bills and rent, covering day-to-day expense and also taking care of premiums and EMIs become very handy if you faced any unforeseen circumstances and also were without an income temporarily.
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