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Financial empowerment for women: Building your savings journey

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The world is recognising the importance of financial empowerment of women in 2024. Banks have joined this endeavour and are offering high-yield savings accounts for women to help them consistently grow their savings and be financially independent. Read on to know the steps that an Indian woman can take in 2024 to gain financial independence through consistent efforts.

Financial planning for women | Tata AIA Blog

How can an Indian woman start her savings journey in 2024?

Growing one’s savings is a continuous process that requires individuals to make regular changes to their savings-related strategies. Here are steps that you can take as an Indian woman to start your savings journey in 2024:

  • Open a savings account: If you don’t already have a savings account, you must start by opening a women savings account. Try choosing an account that offers a high interest rate and efficient mobile-banking services.

 

  • Start by learning more about investment types and strategies: According to a report citing Human Welfare Control data, 80% of women in India were not financially literate, and around 62% did not own bank accounts in March 2023. If you think that your knowledge of finances and investments needs brushing up, you must seriously consider growing it over time. Start by reading blogs, newspapers, and watching videos from reliable online sources related to investments and investment-related strategies. It is advisable for you to consult a financial advisor to brush up your knowledge on these domains.

 

  • List your financial goals to practice goal-based investing: Next, you must list your financial goals before starting your investment journey. A financial goal is an assertion like “I wish to build an emergency fund worth ₹ 4,00,000 by March 2025” or “I wish to save for my higher education (worth ₹ 15,00,000) by June 2026.” Notice that both those assertions contain a specific end date and an investment amount. Your financial goal must contain both.

 

  • Conduct a risk assessment of your portfolio: You can consult with a financial advisor to assess your risk appetite. This will help you choose the right investment scheme.

 

  • Budget regularly by using various budgeting techniques: You must form the habit of budgeting regularly. Accounting for your expenses can help you infer learnings and develop strategies to save more.

 

  • Build an emergency fund is extremely important: To tackle any financial emergency, you must first build an emergency fund. This should be equivalent to at least six times your monthly salary.

 

  • Get health insurance: You must also prioritise getting health insurance. Remember that one serious medical emergency is enough to drain all of your savings. You should sign up for a health insurance plan immediately after building your emergency fund.

 

  • Diversify your portfolio and reassess from time to time: Finally, you must look to diversify your portfolio to spread the risk across multiple investment schemes. Reassess your portfolio regularly to check if your investments align with your investment goals.

 

If you are a woman who wishes to be financially independent in India, following the steps mentioned in this article will suffice to help you get started on your savings journey.

Aly Jones
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