As a professional working woman in India, it is imperative for you to understand how you can take control of your finances early on in your career. With women now contributing heavily to the Indian economy as compared to a few decades ago, there are numerous options available for women to secure their financial future and grow their wealth with ease.
Making investments and dealing with money was largely considered a man’s job in the erstwhile patriarchy that prevailed in our society in the first few decades after independence. Now, however, numerous businesswomen and professionals have carved out a niche in different industries. In fact, a large number of the top policymakers in the country are women. The financial planning industry is no different; over the last few years, we have seen numerous women gaining their CFP certifications and stay head to head with their male counterparts all over the world.
Let’s take a look at how you as an Indian woman can kickstart your financial planning journey.
- Understanding The Financial Landscape: Financial planning for anyone can be broadly classified into three categories –
- Protection Planning
- Investment Planning
- Retirement Planning
Protection planning, as the name suggests, involves identifying the best insurance policies for you and your family. There are different types of insurance that you must consider while creating a financial plan. The first and most important one is health insurance. Medical emergencies can be quite heavy on the pocket. Not having adequate health cover for yourself or your family members could lead to you having to scramble for funds in case of any unforeseen medical situation. Life insurance is equally important; there’s no other way of making sure that your near and dear ones are not left in a financial quicksand in case an unfortunate circumstance befalls you.
Investment Planning deals with analyzing your financial goals and seeking out the best investment options that would help you achieve your goals. There are many investment channels for you to allocate your wealth in; equity, fixed deposits, liquid funds to name a few. The key is finding the best mix of equity and non-equity investments which will keep your portfolio stable even if the market experiences a heavy dip. Depending on your penchant for risk, you can choose which investment vehicles which are best suited for an investor like you.
Retirement Planning: No matter how well you do in life as a working professional, life after retirement can either be a blessing or a bane depending on how well prepared you are for a life without a steady income. While it is important to focus on short term gains, remember that financial planning and investing is not magic. It is a delicate and volatile system which requires a fair amount of patience and restraint. The long term goals of any financial plan will undoubtedly include investments directed specifically for your retirement. If you’re finding it difficult to figure out the best strategy for a more comfortable retirement, don’t hesitate to get in touch with a certified financial planner or wealth management firm.
- Planning For Different Life Stages: Your financial needs seldom stay the same as you advance in life and in your career. With each stage of life, you need to have a financial strategy that keeps you secure no matter what fate brings to the table. From the time you start earning in your early 20s to the time you retire, your financial goals will differ at every stage. Remember, the objectives of your financial plan should mirror your personal needs and goals. For example, you may be interested in pursuing higher studies in your late 20s and you will make investments in your early 20s that will provide you with adequate capital for your fees and down payments for education loans. In your 30’s you may plan to have children; at that time you will need money for your healthcare expenses and baby care expenses. By the time you’re in your 40s, you’ll need money to send your children to college, and so you will make adequate adjustments to your financial plan in your 30s that enables you to provide the best education to your children when they’re old enough to go to college.
- Seeking The Right Help: A lot of investors, both men and women often shy away from availing the services and assistance of professionals. The hesitation is understandable, after all, it’s your money that’s on the line. However, you must understand certified financial planners and wealth management firms exist specifically to help investors like you make better and smarter financial decisions. But, as with all things related to money, you should be quite careful while choosing a financial planner. Read the IMMPL guide to finding the best financial planner to know what to look for when hiring a financial planner to manage your investments.