Every year around Women’s Day we talk about what we can do to empower women. But no such conversation around empowerment is complete without touching upon the power of financial freedom. Today, women are working across industries, running business big and small but, when it comes to investing a lot of women still rely on their fathers, husbands and worst of all, bank financial advisors. Whether you have a job or run a business, investment literacy is something that is crucial. That is why in this story, we will talk about three simple and actionable steps women can take to start off their investment journeys.
Setup An Emergency Fund: Before you even think of investing in stocks, bonds and mutual funds think “emergency”. Though we all hope nothing bad ever happens to us or our families – tragedy can shake the best of us. This could come in the form of a natural disaster, loss of employment, expensive medical bills or even (God forbid) the demise of a loved one. This is why my team and I at Cube Wealth always start by advising people to set up an emergency fund. This is money that is equal to 6 to 12 months worth of living expenses and you’re going to set it aside for all the worst-case scenarios we just touched upon. You can do this by leaving money in the bank or in fixed deposits but a simple liquid fund that offers fast liquidity could work for you as well. These funds give a higher rate of return than most FDs and hence make sense since you will hopefully not be needing the money for a long time – let it earn for you as it sits there. To ascertain what makes sense for your particular financial situation you should always consult an expert advisor.
Get Quality Advice: This brings us to our second step. It is absolutely sacrosanct for you to consult an experienced Wealth Coach. A wealth coach is different from a financial advisor as he or she isn’t someone who is simply trying to recommend funds and stocks for you – a wealth coach is a financial guide. He or she will understand your individual needs, family finances, long term financial goals and consider other factors to dispense, trustworthy investment advice. They are not focused purely on selling you a subpar financial product rather focus on helping you live your best life through smart money management. And along with this, ensure that the Wealth Coach is also recommending top tier, human fund managers, to you with a proven track record. Avoid complex products. At Cube, for example, we handpick each investment option on our app and we personally put our money in before we offer it to customers. Our money is where our mouth is.
Be Consistent In Your Investments: While we’re on the subject of smart money management, it is elementary that we speak about consistency. Whether you choose to invest in stocks, Lump sum investments or start a SIP, regular investment is the key to success. Once you have consulted a wealth coach, identified the right funds with their help and are ready to jump in head-first into the beautiful world of high-returns… pause. Think of what is sustainable for the long term and think of “automation”. The process of automating your investments will truly set you up for success. You can do this by giving your bank standing instructions and setting up a simple auto-debit mandate. If you hate the idea of talking to the bank you can always use a wealth management app such as Cube Wealth that helps you automate your investments.
While there are several other questions you will have as you move further along your investment journeys, these three simple rules will be relevant throughout. I hope that this women’s day more and more women empower themselves by taking their financial freedom and future into their own hands.
By Satyen Kothari, Founder & CEO, Cube Wealth