While the concept of financial independence has been delayed by new campaigns by regulators and institutions, it seems to be an impossible dream for women. Studies show that only 33 percent of women make investment decisions compared to 64 percent of men.
Apart from the fact that women have many qualities that make them better saviors and smarter investors, lower numbers are an agreement that they still rely on their male counterparts .
With a little planning and encouragement, women can not only gain financial independence but also provide valuable advice to their family members on various aspects of investment. So, how can you do that, as a woman? Let’s find out.
Start Before Money
The very idea of financial independence needs to be sufficient to deal with current and future costs without relying on anyone. To do so, it is important to start early and start investing in asset classes that hit inflation like stocks.
While the equity market was topsy-turvy last year – skipping recordings to raise the highest prices in the months – the numbers prove they have won in some legacy classes. Sensex’s 10-year CAGR was more than 10 percent, much higher than other categories of assets.
Starting early helps to gain the strength of the mix, a great friend of a trained investor. You can enter the stock market using stocks or combined funds. If you have enough knowledge of the markets, you can track their movements, and learn good details, investing in straight stock is advisable.
If not, a joint venture can do this for you through a qualified fund manager who takes care of your investment. Using the power of integration and longevity to your advantage, a systematic investment plan (SIP) is a good vehicle.
SIPs not only bring discipline to investment but also allow you to spend more time in the market than you give us time. A SIP of Rs 5,000 in an equity fund that provides an annual return of 10 percent for 20 years can help you raise a corporation close to Rs 38 lakhs. If you raise Rs 500 every year, the corpus will blow the balloon more than Rs 62 lakhs.
Equip yourself with financial information
You can make wise financial decisions only if you have the necessary information under your belt. While the markets have ample financial instruments, each product is different in structure. Your study can help you make the right choice.
Today, there is enough information available on web reading to help you understand better details. Many financial institutions, including brokerage houses, offer online classes that can help you dig deeper into the various financial instruments and how they work.
This study can help you to take appropriate action and prevent your family members from making hasty and erratic decisions. Also, you can protect yourself from the wrong spelling and invest in products that match your goals and desire for risk.
Build a Visible Retirement Corpus
An important aspect of financial independence is getting enough in your early years so you don’t have to rely on your children for all the small or big needs. It is a lie that retirement planning is for men only. Whether you work or not, you need to invest and build a large retirement copy.
Since retirement is a long-term goal, you need to plan ahead and invest in combating the effects of inflation. The key is to keep investing longer to give your money more time to grow. While SIPs in partnership funds are a good bet, the National Pension System (NPS) is another vehicle you can choose to build your retirement kit.
The NPS not only provides financial disclosure, but the cost of managing a sophisticated fund ensures that the costs are not profitable. When you turn 60, you can deduct 60 percent of your tax-free income while using the remaining 40 percent to purchase a pension plan.
Active Involvement in Financial Matters
Active participation in financial matters can help you know your family’s assets and investments made on your behalf, among others. If there is any unintended incident, you can use this information to sail and verify that your rights are complete. When it comes to investing with your partner, keep reading good print to avoid surprise.
The Last Word
Obviously, getting the right basics and investing early in stocks can help you start your journey towards financial freedom. This women’s day, therefore, promises to start this very important journey without fail and to seek professional help, if necessary. We wish you a wonderful Women’s Day!