Financial empowerment for women: Building your savings journey

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

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

Growing one’s savings is a continuous process requiring individuals to change their savings-related strategies regularly. 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’s 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 your knowledge of finances and investments needs brushing up, you must consider growing it over time. Start by reading blogs and newspapers and watching videos from reliable online sources about investments and investment-related strategies. You should consult a financial advisor to improve your knowledge in 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 include both.

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

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

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

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

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

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