Traditionally, women have played several roles in their lifetime, mostly centred around that of a caregiver or homemaker. According to a survey conducted by the National Statistical Office, over 66% of Indian women engaged in unpaid domestic work, comparatively, men were at 12%. However, tides started changing, majorly in the 1990s, as more women stepped out and joined the workforce.

Achieving Financial Freedom

As a working woman, you need to invest in the right schemes that grow your money to be future ready. If you are disciplined and consistent with your investment, you can rest assured reap benefits of this financial regimen. If you are keen to find out how and are eager to learn, let us deep dive into the ocean of financial planning and secure a peaceful tomorrow.

Budget your earnings

The first step towards financial freedom is finding the balance between spending and saving, and that can only be achieved by budgeting your expenses. There is never enough money, and there are always countless expenses. The only way to get access to money for investing is by saving it from your earnings, and the best way to do that is by budgeting. You need to reserve:

If you can reverse the formula and increase your saving percentage, your future self will thank you abundantly.

Plan for your retirement

As an independent woman, plan for your senior years without depending on your partner or children. There are plenty of retirement plans that can help you save the required corpus for your retirement years; choose a suitable retirement planning scheme such as National Pension Scheme (NPS), Unit Linked Insurance Plans (ULIPs), Equity/Mutual Funds Pension Schemes, Public Provident Fund (PPF). These schemes offer tax benefits today and can help create a sizeable retirement corpus for your senior years.

Here is a sample retirement plan:
Assumed tenure: 25 years
Assumed ROI: 10%

Consider inflation

Take inflation into account and how it will affect your money. The ROI of your retirement plan should be at least 4% higher than the current inflation rate for you to stay afloat in the volatile market. Considering the almost 6% inflation rate, your ROI should be around 10%.

Financial planner

If you are unsure of where to invest your money, then the best choice is to contact a financial planner who can assess your financial health, understand your goals, and help you invest your money based on your needs. These professionals will also help you navigate your taxes and reduce your liability by investing in tax saving instruments.

Diversify your investments

Having a great pension plan is imperative but it’s not the only investment you should make. Don’t put all your money on one plan, diversify your funds to protect your investments from market volatility. Invest in gold bonds, buy a property, invest in NPS, PPF, dapple with stocks and bonds, high risk equity mutual funds + low risk debt funds– the idea is exploring as many options as possible aiming for the best returns. Before investing your money, read about the risks involved and how you can mitigate those risks or talk to a financial planner who can guide you for the same.

As a young woman out in the workforce rubbing shoulders with your male counterparts, it is imperative to be financially invested in your future and generate wealth for your and your family’s future. Being financially independent gives a different kind of freedom, but to grow your money, you need to invest it wisely.

In the words of the legendary writer Ayn Rand, ‘Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.’ You have access to the money; it is time to use it as a tool and invest soundly so that it can bring you financial freedom and security for your senior years.

https://www.mospi.gov.in/sites/default/files/ press_release/Press_note_AR_PLFS_2023_24 _22092024.pdf