Dear women, take charge of your finances! Here’s how
According to DSP Winvestor Pulse 2019 Study only 33% of women take independent investment decisions as compared to 64% of men in India.
This may be because very few women think they need to know anything about managing their own pay cheque as long as the men in their family are handling it. But learning about how to manage money is important not because you don’t trust your father or husband with your money.
Here are a few reasons for why you need to take control of your money and be on top of things even if someone else is managing it for you:
- It is not that a man always knows best just because he is a man. You may be better at it, but not know because you have never tried.
- If you are heavily dependent on someone else, how will you handle things if they are not around either because they are unwell or they pass away suddenly or you get divorced.
- If for any reason your relationship with the family member managing your money changes in the future, you need to keep your passwords and other critical information private.
- You need to be able to teach by example to your kid the importance of managing their own finances irrespective of gender.
Another obstacle to start investing is that even though women may have financial goals, they prefer to wait till they start earning a certain salary, which they think is good enough. We asked a few 20- something women in an office about their investments, most said they don’t have enough money to invest. But, almost all of them had parcels from online shopping portals arriving for them every other day. The point they often don’t realise is that you don’t need a lot of money to start financial planning and investing accordingly. In fact, it is women who don’t have access to the right information who make wrong decisions like buying certain financial products just because their friends did or someone told them it saves tax.
Even if you are new to investing you can start from the basics from credible Websites and apps. One such online learning portal is run by DSP Investment Managers which helps you learn about investments whether you are a beginner or expert. Here are some tips from Aditi Kothari Desai, Director and Head-Sales & Marketing, DSP Investment Managers on how women can take control of your finances.
- Start investing early and get a financial planner
Take the reins in your hand as early as possible because you are one earning it. Also, when you inherit money or any other assets, you need to know what to do with it.
If you are just starting out make sure you know your bank account details, your pins and passwords. Get a PAN card and get your KYC done. These are some of the basics you need to have in place so you can start investing.
It is important to get a financial advisor who can explain how it works with details about your investments that you need to know. Choose an advisor who is willing to talk to you about your concerns and help you understand your investment portfolio and the reasons for choosing a particular investment plan.
- Keep track of your investments
If you don’t know or don’t have a strategy in place you are likely to make wrong choices. For example, if you don’t have dependents, it doesn’t make sense for you to have life insurance. If you do have a family dependent on your income then it makes sense to get a term plan, which is an insurance cover that will help your family.
- Make sure you have a source of income after maternity
If you are used to having an income, it is good to have some passive income source if you intend to take an extended maternity break.
- Calculate alimony requirements based on current assets, income and foreseeable expenses
We have an online alimony calculator that you can use to accurately calculate a fair alimony after you agree upon expenses and disclose correct details about your current finances such as salary, bank balance, other income etc. The idea is you wouldn’t have to change your lifestyle after divorce does not change. Both men and women can use this calculator to come at a fair figure.
- Don’t panic when markets are down
In times of uncertainty there are those who will always say that they are glad their money is in the bank. But, we need to realise that these are not long lasting. And they happen once in 10-12 years. All of these goes on in the life of the market. There is something called an income fund or a debt fund and most of them are very low in risk.