Hyderabad: The life of a woman is like a roller coaster ride. From house to the office, marriage to motherhood, in every stage they encounter several challenges. On the course of managing these duties, most of the women forget to take care of themselves.
Hence, they face a different set of financial-planning crisis than men because they tend to live longer, earn less, and take more breaks from the workforce. Women may also experience more difficulties if they are widowed or divorced.
The good news is that women are smart in savings. According to a report, women save at rate about 5%-10% higher than those of men across every income group.
However, even though their savings rates were higher, women’s balances in savings accounts tended to be lower than those of men because women, on average, had lower incomes. This emphasizes the extreme importance of saving for women.
So here we are sharing some tips which help you in achieving your financial goals.
Say hello to SIP
The habit of saving money in women originates from home. Remember the days, when our grandmother or mother managed to save as much as they can by using their negotiation skills or by cutting down the unnecessary expenses. Practice that!
Start investing through Systematic Investment Plan (SIP). It is a financial tool that helps to create wealth, by investing a small amount of money every day/month over a period of time.
It is a platform offered by mutual funds to invest in a disciplined manner. It follows the method known as ‘Rupee cost averaging’ and ‘Power of compounding’ that generates a lucrative and attractive income in the longer term.
With the growing popularity of mutual funds, and the ability to make their own financial planning and decisions, many women have shifted their gaze from FDs to mutual funds.
Invest in equities
Being a woman is tough especially in a country like India. While money cannot keep us away from all the challenges, it certainly will help also in negating some of the monetary issues which we may face in our future.
But putting a sum of amount in FD & RD is just not going to help us. If you have the appetite for higher risk, then you should explore the stock market which can you give unlimited return than traditional saving options. Start reading about stock markets, listed companies and choose quality stocks for your portfolio.
ELSS
Equity Linked Saving Schemes (ELSS) are the best combination of higher returns and tax savings. It is a diversified mutual fund product that allows tax saving under section 80C of the Income Tax Act. It has given a 15-20% return in the last 5 years.
Bonds are best friends- World knows women have the best management skills. Use your skills while making your portfolio. Don’t miss out the opportunity to invest in bonds.
