In this day and age, we see a lot of women in the workforce and making significant strides in their professional careers. Most of these women also take home a hefty amount of salary.
Seeing this, we might like to believe that women are integral to the decision-making process regarding financial matters. However, many women are still shy when dealing with financial matters.
Here are some of the ways that can help women come out of their cocoons and take part in the decision-making process.
Have the right mindset
Many women have internalised many misconceptions, such as only men can handle money, and one must be good in mathematics to understand investments. These misconceptions need to go away.
Before taking any step, it is essential to have the right mindset. The right financial mindset would be to let go of limiting beliefs and take the initiatives to get involved in financial matters.
Having the right mindset brings in a positive domino effect. Cultivating the right financial mindset gives confidence to women to take financial decisions and plan for their future.
The right financial mindset also helps women to face financial challenges that are unique to women, such as lower pay, career breaks to start a family or take care of the elderly and longer lifespans.
After developing a positive mindset, the next step would be to educate yourself on financial matters. Educating yourself is the core step, as it helps you cement the confidence that would arise from having a positive mindset.
It is now easier than ever to educate yourself on financial matters such as investment assets like equities and debt and the working and structure of these asset classes. There are many free quality Youtube channels and resources that can help you build an understanding of the various aspects.
You can also read books to widen your existing circle of knowledge.
Set realistic goals
Once you are aware of the different financial nuances, this is time to set realistic financial goals. These financial goals will depend on your life stage and your future expectations. For example, if you are a person who recently started working, one of your financial goals might be to fund your travel expenses. However, a person in their 40s might be more interested in investing in their child’s higher education. So, the financial goals that will be close to your heart might not be the same as that of your neighbour. And that is how it should be.
Have an emergency fund
Having an emergency fund is one of the non-negotiables. Whether you are a single woman in her 20s or a mother of two grown-up kids, having an emergency fund is one of “the” most important things.
Having an emergency fund gives you the peace of mind to go on with life without worrying a lot about what might occur. No one knows the future. But we all know we might be in an unexpected emergency situation. While we might not be able to lessen the emotional turmoil that comes with such situations, we can cushion the financial blow with the help of an emergency fund.
It is typically advised to keep three to six months of your expenses in an emergency fund. However, this is just a ballpark figure. The real figure will depend on your financial situation.
Taking adequate health insurance cover
Adequate health insurance cover is crucial for women as their healthcare requirements are unique. Women need frequent check-ups such as regular gynaecological exams, mammograms, and prenatal care during pregnancy. Additionally, women are more prone to certain health conditions such as breast cancer, cervical cancer, and osteoporosis.
Without a health insurance policy, the cost of healthcare can quickly pile up in the blink of an eye and become a financial burden. And many women might prioritise keeping money for the other family members over their medical care. So, having health insurance coverage is essential to access medical care without worrying about money.
It won’t be wrong to say that women’s financial wellness is a critical issue that needs to be addressed in today’s society. These were five steps that women could take to focus on their financial wellness.
This blog is purely for educational purposes and not to be treated as personal advice. Mutual funds are subject to market risks, read all scheme-related documents carefully.
Insurance is subject to matter solicitation.