5 methods for women to become financially successful

By Girirajan Murugan

Handling finances may be a daunting endeavour, especially for women, who face challenges like the gender wage gap and the fact that women frequently shoulder the majority of caregiving responsibilities. Despite this, it is important for women to take charge of their finances in order to achieve financial independence and grow their wealth. Financial understanding and strong money management skills can give women a deep sense of security and assist them in saving and investing for the future. So, how can women be financially successful? These are five methods for women to gain financial control:

Create a budget and adhere to it

A budget allows you to spend within your means while still saving for your financial goals. As a result, making a budget is the first step towards gaining control of your finances. Begin by identifying all of your sources of income and spending. Then, prioritize your spending and ensure that you have enough money to cover your basics such as housing, food, transportation, personal, and healthcare. Don’t forget to include savings and investments in your budget. Once you’ve established a budget, stick to it as closely as possible. Evaluate your budget on a regular basis, say every week or fortnight, to keep track of your expenditure and savings and make modifications as needed. 

Also Read: Money Matters: Essential personal finance tips for women of the future

Build an emergency fund

Having an emergency fund can help you avoid debt and financial stress in the event of unexpected expenses such as sudden medical bills or car repairs, etc. Begin by putting aside a tiny amount of money each month until you attain your goal. Calculation and research Calculate your average monthly expenditure and find out how much you would need to sustain your family for at least 6–12 months (pre-Covid, it was 3-6 months) in the absence of an income. Research where to park your money. Choose an avenue that has high liquidity and low risk. Your good old savings account, or FDs, are a good choice. Alternatively, you could also look at liquid funds, a super savings account, or digital gold to park your emergency fund.

Make a point of investing in yourself

Investing in yourself is one of the most effective strategies to boost your earning potential and accumulate wealth. Consider taking classes or obtaining qualifications that will help you stand out in the employment market. Participate in financial education classes to gain knowledge and skills that will allow you to manage your finances without relying on others. Participate in your finances, and don’t be hesitant to speak up while discussing money with family, friends, a financial counsellor, or a lender. Ask questions so you can make informed decisions about how to manage your money. Keep in mind that investing in yourself is a long-term approach that will pay off in the long run.

Manage your debt

Debt management is a vital financial duty, and debt elimination should be one of your top goals. Commit a portion of your monthly paycheck to loan repayment so that you can retire in peace with no debt hanging over your head. Debt can be a major impediment to financial independence. Create a strategy to pay off high-interest debt, such as credit card amounts, first. Wherever feasible, avoid incurring new debt, and if you must, make sure it is affordable and falls within your budget.

Make a retirement plan

There is no set age for planning your retirement. The sooner you begin, the more comfortable your retirement will be. Moreover, who’s stopping you from planning for an early retirement? Make sure you’re contributing to your retirement account and consider raising your payments as your income grows. Consider consulting with a financial advisor to help you design a retirement plan that is tailored to your specific needs.

Also Read: What should women do to retire rich with high pensions? Experts explain

To sum up, having control of your finances is critical for achieving financial independence and wealth creation. Furthermore, it is obvious that a woman does not need to be an expert in order to achieve financial independence. All you need is a clear understanding of your finances and an organised plan for putting them to use. If your financial objectives are more complex, you can seek the assistance of an independent and trustworthy financial counsellor to guide you through the process.

(The author is CEO, FundsIndia. Views expressed above are personal)