Hyderabad: Women are putting curbs on themselves when it comes to money management. Reports state that many Indian women have a fear of loss, especially when investing. Hence, traditional investment schemes like gold and fixed deposits (FDs) are preferred. These are not enough to create long-term wealth. In this backdrop, there is a need to leave doubts and look at ways to increase money.
Financial literacy is essential for planning
Financial literacy is essential for planning. According to a report, only 21 per cent of women in the country are financially literate. They are facing difficulties in choosing the right investments. Things have changed now compared to before as everything is available at our fingertips. There are many facilities like newsletters, websites, free online courses, videos and podcasts to learn about investment schemes available in the market.
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The help desks of the respective organisations are also available to clear any doubt about the investment options. These are helpful in creating financial awareness like how to manage money, planning a household budget, how to invest your money to reach specific financial goals and you can easily learn everything.
Savings should be converted into investments
Money can be saved in safe schemes as there is no risk of loss. But, it will not be able to cope with rising inflation. Investments are crucial for achieving goals and creating long-term wealth. This is an important step in women's journey toward financial freedom. There are many investment schemes available that offer returns that beat inflation. They help make your money work for you. Try to divert the savings into such schemes. Start a Systematic Investment Plan (SIP)-- start investing small amounts regularly in market-based security schemes and mutual funds to provide better returns with less risk.
Savings should be converted into investments
Of late, women are playing a significant role in household finances. But, they are still not given adequate priority when it comes to insurance. Women must take health insurance and life insurance policies. An unexpected illness can wipe out your entire savings. As a result, you will be in dire straits. To avoid this, you must have health insurance. Life insurance helps the rest of the family financially in case of untoward events. It is essential to include insurance policies in your financial planning. Take a look at the available insurance policies and try to choose a policy that suits your needs. Seek expert financial planning advice if necessary.
Think about retirement plans
Most people don't think about retirement plans. Especially, working women should focus not only on immediate family needs, but also on financial contribution in retirement life. Investments in this direction should be continued from the time of joining the job. By starting investments from the age of 20-30, there is an opportunity to accumulate large funds. Investments get the benefit of compound interest.
