Traditionally, when men were the primary earners and investors, women would equally be involved in saving a small amount that would help the family in any financial crisis. Now that women are equally participating in the workforce and a vital earning member of the family, different savings schemes have been designed to cater to their needs. There are two factors that every individual irrespective of gender needs to follow.
- Objective of the investment: Defining your objectives gives direction to your savings. For instance, you would want to buy a car, plan a luxury getaway, or accumulate funds for the down payment of your dream home. Furthermore, these objectives have a time limit by when you would want your funds to grow.
- Expectations from your investment: Next would be the corpus that you are expecting to fulfil your objectives. Having a clear figure would help you choose the funds and know your risk appetite.
As women are new-age investors, understanding the reasons why they need to save would be key to choosing a good savings plan.
Financial Security: The utmost importance of investing is to be financially secure at any point in life. Along with security, you can also contribute to the welfare of the family. You can help fulfil certain dreams that were not feasible with just a single working member.
For instance, if your partner can contribute to a 2 BHK flat, then your contribution would further help you get a bigger house or maybe get a house in a posh locality.
Fund for Retirement: Having enough funds for your sunset years is something every individual should aim for. Being a woman, having financial stability post-retirement is very crucial as you can take care of all your expenses with your savings and not depend on anyone.
Investing in Insurance: If you have been an earning member of your family, then investing in insurance such as health insurance or term insurance can help your family sail through any unforeseen circumstance. While health insurance covers you during any health ailments, life insurance becomes the protection for your family in your absence, especially if you are the primary bread earner.
Planning Small Outlays: Big investments are always a better option but planning small outlays every month helps in savings and also manage your home budget without putting a financial strain.
Choose auto-debit options for investment: Whatever the amount is, automating your investment helps you be a disciplined investor without missing out on any installment. Auto debit options deduct money from your account on a specific date without having you worry about the last date, thereby helping you grow your wealth smoothly.
Choose steady investment: Choosing savings plans that assure your steady income helps your money grow and provides more or less guaranteed returns. This way, you can avoid capital erosion and focus on a low-risk to a moderate-risk investment portfolio.
Choosing tax-saving investment plans: Choosing a plan that allows saving tax is an additional benefit. Some plans allow tax savings up to ₹1.5 lakh under Section 80C. Click here to know more about Section 80C.
Investing in a plan requires quite a bit of planning and research. You can aim for low-risk to moderate-risk products at the start and later shift to high-risk products. Whatever the investment amount, the key to growing your wealth is to start saving as early in life as possible.
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