Top 5 Tips for Women to Be Financially Independent This 2022

Posted in Investment By Chanel Rick - Apr 19,2022
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Despite our many advancements in the technological sphere, women’s fight for financial freedom in the fiscal domain continues. While it’s a crisis that predates us all, the government has stepped up by creating provisions to ensure equal opportunities for financial independence. Since then, several investment schemes have been created to help women exercise their financial rights. 

Due to the low financial literacy rate of women in India, many are unaware of their rights or how to deal with financial instruments. However, by empowering them with the benefits of fiscal knowledge, we can guide women on ways to cleverly invest their savings. Additionally, promoting financial awareness among women helps the country by increasing the number of contributors to the economy. 

Also Read: Women’s Financial Circumstances Differ from Men’s: Here’s How

Financial Instruments for Indian Women

As mentioned before, the Government of India has created several avenues for women to achieve their financial goals. You can compare the benefits of these investment products and choose one that benefits you, or the women in your life, the most. 

1. Public Provident Fund (PPF)

Available across all post offices and banks in India, it’s the best investment plan for women. It offers interest rates of 7.1% to 8% for a min. tenure of 15 years

2. Fixed Deposit (FD)

One of the most secure traditional investment instruments, you can safely invest your savings in a lump sum. If sudden emergencies strike, you can also avail a loan against your fixed deposit

3. Mutual Funds

While seemingly intimidating, it’s easily the best investment option for high returns, based on your risk appetite. Opt for the Systematic Investment Plan (SIP) to reduce the risk of losses and increase the Return on Investments (ROI)

4. Real Estate 

To encourage real estate investment among women, banks offer special discounts for purchasing a home loan. Furthermore, if they choose to, they could gain an extra source of income through rent

Opt for any of these investment instruments whether you’re a working woman or a homemaker – your financial goals matter, too! 

5 Tips That Aid in Financially Empowering Women 

By imbibing these tips into your life, you will be on the path to financial freedom in no time! 

1. Learn the Basics of Investing 

Many women, especially those from rural areas, often find themselves overwhelmed by financial matters. Typically, due to a lack of knowledge. By proactive learning more about different investment instruments, you will be able to master the necessary skills for investing. 

2. Exercise Patience with the Market 

Due to the volatile nature of the stock market, ups and downs are inevitable. However, remember that when the market is down, it will go back up eventually – sometimes surpassing its previous performance. So, avoid panicking and selling off your stocks and bonds during market crashes. 

3. Adequate Research Before Investing 

Don’t let your ignorance get in the way of financial independence! While choosing from thousands of mutual funds and stocks, learn their features, and benefits and scrutinise their performance. If you still can’t figure it out, consider seeking the expertise of a professional. Regardless of how you choose to invest, remember to verify the information or the tips you follow. 

4. Smart Asset Allocation

After assessing your financial situation and aligning your financial goals with plans, determine your risk appetite. Financial experts always recommend diversifying your portfolio to avoid sectoral crashes. So, to reduce your risk, you might want to invest some money into less volatile investment avenues like fixed deposits or recurring deposits. 

5. Act Against Your Biases 

During your novice investment years, mitigate the fear of panic-driven mistakes by constantly assessing factual data. Review the performance of your investments, even during the worst market crashes. Experts have always suggested holding off on selling your investments during downfalls and focusing on reaping the benefits of a bear market. 

This 2022, help yourself and countless other women by spreading the word on financial empowerment to contribute to an age-old problem of fiscal inequalities. 

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