What do women want? An ages-old question which I think no man or even woman for that matter, has been able to answer this question accurately. We live in a time when women have broken many shackles and leaped innumerable boundaries. Even though women have made great strides towards empowerment and independence, one important element that is missing is financial independence. In order to be truly independent, women must manage their savings and investments and be in control of the money that they earn.
How can women do that?
Investing is the best way to grow money – an increasing number of women are now stepping out of their homes to work and to earn money for themselves and their family. The money that women earn serves as their security blanket, something that they can rely on in their time of need. However, it is quite likely that the money that you have put aside might not be sufficient when the need arises. This is because the money simply kept aside will not grow. On the other hand, the purchasing power of the money kept aside will keep declining due to the impact of inflation. Now, if you were to take the money that you keep aside and instead invest it in a financial instrument, it will most likely grow over a period of time, helping you beat inflation and reach the desired goals.
Seek help from a financial advisor – it is impossible for everyone to know everything. Accept that you do not know much about investing and then seek expert advice. Look for a financial advisor that understands your requirements and is capable of handholding you through the investment management process. It is important that you are comfortable with your financial advisor and can trust him/her. A financial advisor will understand your goals, draw up your risk profile and then suggest a portfolio allocation strategy that adheres to your risk-return requirements.
Invest through systematic investment plans (SIPs) - a Systematic Investment Plan is an investment vehicle where an investor makes fixed, regular payments into a mutual fund, to reap the benefits of long-term investing. One can start investing with a large or small amount of money and can gain exposure to the desired asset class. From an investor perspective, SIPs are great as they inculcate discipline and mitigate volatility through rupee cost averaging.
Educate yourself – while help will always be at hand through a financial advisor, it is important that you educate yourself too. Make an effort to understand the basics of investing and learn about the various asset classes where you could invest your money. Ask your financial advisor relevant questions and develop an interest in building a robust investment portfolio.
Do not be afraid – while we have put this last here, it is actually the most important factor in acquiring financial independence. The world of finance and investment management may seem like unchartered territory to many of you. One is always afraid of the unknown. However, do not be afraid to take charge of your financial destiny.
Empower yourself through knowledge and rely on a trusted financial advisor. Only you can change your financial destiny. Do not be afraid to take charge. The time to act is now.
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