From excelling in areas like governance, arts, sports to pursuing the professions of their choice, from winning the world with beauty to landing in space, women have covered a long journey to empower themselves. Yet, many of the women are still unconfident about their skills and financial independence. Either be a housewife or working woman they should know the importance of financial well being.
“A woman’s best protection is a little money of her own,” says Clare Booth Luce, American author and US ambassador.
Both globally and in India, when it comes to handling their finances, most of the women leave it to the men. Apart from being financially independent, the confidence to manage one’s own money is important too. Even working women do not have financial independence as they ultimately give up their salaries to brothers or husbands. Is it ample for a woman to work and earn a few bucks? Absolutely not. There is a lot more to learn in financial matters.
“It (being financially independent) gives you a different kind of freedom. Today, I am not dependent on my parents, nor do I need to depend on a man from a financial point of view. And, it is a nice feeling,”says Deepika Padukone, actor.
A report titled ‘Women and Money’, published by the Gates Foundation quotes a woman named Indira from India. She says, “If I need money, I would ask my family, but I’m hardly able to give if they need it.”This is not the case of Indira alone. Many women like her are dependent on their family members for their basic financial needs.
Bill & Melinda Gates Foundation’s India report, ‘The Financial Agency of Women’, released in 2019 says that women are told that phones, banks and services are too smart for them. It quotes a World Economic Forum report that says 74 per cent of women are not employed, compared with 25 per cent of men. For rural Indian women, the gap between their lives and digital financial services is vast, the report says.
Women have always been told to look attractive and beautiful and all her focus went only on those aspects. But now, the mindset of women is changing and they have started focussing on being self-dependent and financially secure. To be financially secure, a woman needs to be financially independent, which is about deciding what to do with their money. This applies to both housewives and working women.
Now the question arises that why should women take responsibility for being financially independent? Here are a few key reasons.
Stop being helpless: Even today, many women are tolerating domestic violence because they do not earn. They are financially dependent either on their partners or family members. Moreover, it becomes tough to walk out of their abusive marriages. So, by being financially independent a woman can be self-worthy and make wise decisions.
Meet emergencies: Emergencies are uninvited. Many lost their jobs in the Covid-19 pandemic and even without any prior information. Tackling with the unpredictable health emergency cost became difficult for the person’s well-being. Women can support their families to cope-up with random needs in such situations if they are financially independent.
Share the responsibility: The cost of living has risen, and meeting the family requirements with a single income became difficult. Women can participate in contributing to everyday expenses by knowing more about how money can be invested.
Be a role model: A woman who shares her family responsibilities and supports both emotionally and financially is always taken inspiringly. Kids learn that there is no gender inequality by learning from their mothers.
As said by Betty Friedan, feminist writer and activist, “Economic equity is enormous empowerment of women. Having jobs that provide income means that women can be more effective force, a more equal force, in the political process. Women with income take themselves more seriously and they are taken more seriously.”
How can women achieve long term financial independence:
Ensuring financial independence: It is easy to talk about women empowerment and hope change comes through top-down policies. But the reality is that a woman will have to plan her financial journey to make sure her finance game is strong.
Creating a budget: Every good financial plan has a budget. Women need to calculate the expenses they need for bills, groceries, school fees, rent among others. Creating a monthly expense sheet and allocating the rest of the money for an emergency helps a lot in managing finances.
Managing her money: There are many online resources where a woman can learn the basics of money management. She should not give this power to anyone else and should maintain a separate bank account.
Learning about investment: Starting investing early ensures financial security. Either be it a small recurring deposit or a fixed deposit, the power of compounding is magic. This money will prove useful in future whether it is to buy a home or to help in your child’s education.
Being debt-free: Whether it is a home loan or a business loan, prepare a figure to repay the loan at the earliest. Creating a savings bank for herself protects women from high-interest personal loans.
Buying some insurance: Picking up a health insurance plan for her family which covers aspects like critical illness, cashless hospitalisation, etc. can act as a savings opportunity apart from safeguarding the whole family.
Hiring a fee-only financial partner: A structured financial plan helps to tie the investments with one’s goals which may include retirement or children education. A financial planner can make a plan according to one’s needs and aspirations.
Therefore, making a woman aware of the impact of being financially independent, can help her not just save money but also invest in various financial investments.
