49 percent of the women in the country are either not investing at all or are unaware of their investments, this was the key finding of LXME's Women and Money Power Report 2022. According to women financial advisors, many women have been made to believe that men manage money better, which is a myth.
Priti Rathi Gupta, Founder of LXME, India’s first women-centric financial platform, believes that, “Women work hard at earning and saving their money but usually stop there".
Gupta says that women have to shed their inhibitions and believe in their decision making for their own good. She says women have mental blocks like, 'it's risky', 'its not my cup of tea', 'what if something goes wrong' and it is very important to break these barriers.
“Many women we speak to believe that the man should be the decision maker- My husband/father takes decisions for our family finances. This leads to women becoming unsure of stepping into the game. The stereotype of this being a man’s domain. She says that women feel that they might have to take career breaks because of family responsibilities and hence they can’t be the decision makers. It is important to understand that you have to take your money- as your money and take smarter decisions,” said Dilshad Billimoria of Dilzer Consultants.
Here are five investment tips each from both Prithi Rathi Gupta and Dilshad Billimoria.
PRITHI RATHI GUPTA, FOUNDER, LXME
First thing, evaluate your financial goals, define them with timelines, and then evaluate the best-suited mutual funds or other financial product. There is ample information available online these days, but if you want, take help from a seasonED financial advisor.
Start investing early, even if it's a small amount, and watch compounding work its magic over time.
Create an emergency fund to protect you and your loved ones in the event of any contingency. It is equivalent to 6-8 months of your monthly expenses.
Start building your retirement fund with long-term equity mutual funds
Don’t copy someone else’s financial plan & don't put all your eggs in one basket.DILSHAD BILLIMORIA, DILZER CONSULTANTS
Open a bank account: Regardless of how much money you have, instead of keeping it in the house, keep it in a bank account. Use debit cards, get involved in the bank work.
Create and maintain budgets for yourself and for the family: Most women are good at it but they don’t do it on paper. Looking at a budget every month not only saves money but also gives you confidence that you understand money.
Participate in family discussions about investing and goals: Women should not excuse themselves whenever there is a discussion about finances in their homes. Being a part of the discussions will make you better at making those discussion with time.
Ask Questions: Don’t be afraid of asking questions from your family or anyone you think understands better finances than you. There are ample ways of learning available.
Create their own financial independence fund: However small it maybe, you should have a fund of your own. Keep on adding little savings Rs 100-Rs 500 in that. If you are earning well, separate a chunk of that to have an emergency fund for yourself.Financial planners believe that there is a need for more women financial advisors who are qualified and certified. Because of conditioning and inhibitions, women feel intimidated to ask questions. They can open up more in front of women financial advisors.
First Published: Mar 6, 2023 10:31 PM IST
