7 Habits That Will Help Women Gain Financial Freedom: The Indian women today are developing age-old barriers and going a step up to face new challenges & welcome new abilities, both individually and professionally. They are very well maintaining their household duties as well as getting considerable paces in breaking through the glass ceiling in various industries.
What makes these present women a symbol of versatility and strength is financially self-sufficient. To establish their own identity and individuality, they must free themselves from financial dependency on their spouse or parents & safeguard themselves from any unexpected situation. As per the latest study conducted by UBS Global Wealth Management, almost *58% of women yet depend on their male allies for business planning.
A well defined financial plan can help them achieve a good life for themselves as strong as for their loved ones. Here we list down seven people that can help women gain economic freedom.
7 Habits That Will Help Women Gain Financial Freedom
1. Track where your money is going
It is crucial to follow all your cash flows. You need to list down all your debts, whether it is food, entertainment, shopping, utility payments or loan payment. Once you know where your money is working, you can prioritise your money outflows and cut down on useless expenses.
2. Plan your finances
Now since you have sealed the leakage, use a very first step towards achieving financial independence by setting realistic goals and having a business plan to achieve them. A well-defined strategy is required for all your business requirements, right from securing your child’s training to ensuring a happy retired life and safeguarding against medicinal emergencies. A business plan is a comprehensive evaluation of your current financial situation, future money goals and a plan to reach those goals.
3. Customise your financial plan
Most women opt for a particular business plan only because others are making so. However, this is not the finished thing to do. You must draft an economic plan for yourself, customised as per your business goals, risk dehydration and investment horizon.
4. Start small & move to bigger goals
Every small step that you need towards achieving your financial freedom is a big leap for creating wealth in the long run. You can start by investing a more modest sum of profits from your day to day expenses. With little gains, you build upon the power of compounding, which helps you create stable returns by the time you retire.
To explain this, let us examine an example. Let’s say. You spend Rs.10000/- each year at 10% interest rate. After a year, your investment would grow Rs.11000, and after the second year, it would grow Rs.11000 + Interest @ 10% of 11000, i.e. Rs.12100. Furthermore, after 3rd year, it would become12100 + Interest @ 10% of Rs.12100, i.e. Rs.13310 and so on.
Hence, increasing Interest helps you get more!
5. Prepare for contingencies
Unexpected situations often require women to take sole responsibility for their children or parents. In such scenarios, investments will come to your rescue and cater family’s requirements. Therefore, when you get your financial plan, also factor in accidents and unforeseen events.
6. Diversify your investments
As the famous saying continues, “do not put all your eggs in one basket”; you should not spend all your savings in a single investment avenue. It helps you spread your risk over a variety of investments. You can consider a high-risk investment offering high returns with a low-risk investment offering reasonable returns. There are a few financial plans accessible which give you such flexibility.
7. Insurance is an important choice to make
Traditionally, women have always had a traditional approach towards personal finance, as compared to their male counterparts. They mostly covered in family floaters in policies held by their husbands. One of the significant causes, why a woman does not opt for insurance, is because she never holds herself that great to buy a cover. However, insurance is not only for men; even women need to take insurance.
Irrespective of how much you make or have as profits, it is essential to have an adequate insurance cover ensure absence your family does not go financial stress. Furthermore, an insurance policy can help you fund your day-to-day expenses at a later stage.
An excellent investment & insurance plan like HDFC Life Click 2 Wealth can help you preserve yours as strong as your family’s future by ensuring financial continuity. You can choose a program from the three available options based on your requirements and enjoy benefits such as market-linked returns, partial withdrawal, settlement option, maturity benefit, death benefit, fund boosters and many others.
The points mentioned above will help you achieve financial freedom and safeguard you against unforeseen circumstances.