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“Financial independence for women can be viewed from two vantage points, a homemaker and a woman with a professional career.”

This March, as we commemorate International Women’s Day and celebrate how women are making strides in diverse fields, there is also a need to underline the need to prioritize their financial independence and security. With changing times, gender roles have expanded with most Women found in leading roles as well. Shefali Khalsa, Head – Brand & Marketing, Corporate Communications and CSR, SBI General Insurance, on the occasion of International Women’s Day suggests 5 ways to ensure financial independence that empowers women.

Shefali Khalsa says, “Financial independence for women can be viewed from two vantage points, a homemaker and a woman with a professional career. While the homemaker manages the monthly budget for household management, on the other hand the working women manages their investments and tax filing. This certainly gives a sense that women understand the concept of expense, saving, money for security at a smaller scale.”

She adds, “The key inference is that women tend to know more about managing their finances than they think, but the gap may be due to the lack of confidence to make independent decisions. The concept of investment and insurance is tagged as complicated. In this scenario, confidence building through education and awareness is essential. Women can certainly manage investment and insurance decisions with a deliberate effort and reassurance. To enable this, our systems and society needs to take advance steps and thereby make woman at par even in investment planning. Introducing investment planning and insurance as a part of school curriculum, and on the other hand parents should encourage young adults to be involved in financial dealings like going to bank for transactions etc. Financial planning awareness and skills can lend women a deeper sense of security by helping them save and invest for the future. This Women’s Day, here are 5 small steps that can empower them financially:

Investing in financial goals

Life has its uncertainties and being financially stable helps one plan their future accordingly. Every person has specific life objectives, such as marriage, owning a home or automobile, their children’s schooling, their marriage, and finally retirement. These goals that should be set ahead of time and an early planning of investment is essential.

Emergency Fund

Pandemic is the biggest example of making people realize the benefits of savings. To be financially sound, having an emergency fund on hand to help in difficult times. To survive any unanticipated calamities, your emergency fund should cover 12-24 months of living expenditures, including debts.

To be debt free

Maintaining a debt-free life can be considered as the ultimate financial freedom. Today, the easy monthly installments/credit permits people to purchase products that they might have not been able to purchase otherwise. However, while purchasing on credit, one must confirm that their debt-to-income ratio is 30% – 40%. Debt reduction and management must be focused to maintain financial well-being and avoid debt stress.” 

Health Insurance should be a part of financial planning

Khalsa advises, “Health emergencies are often unforeseen, and insurance provides the financial security for access to quality healthcare in such situations. A comprehensive and adequate health cover precents a health crisis from turning into a financial crisis and hence, is an important component of financial planning. A health insurance policy protects an individual through expensive medical treatments. Similarly, the right and well-planned insurance cover secures your finances against adverse situations faced by anything that you value, like vehicle, home, businesses, etc.”

Creating a strong investment portfolio

“A sound investment portfolio is essential to start even with smaller amounts using various tools of investment like SIPs, infra bonds, etc. and can be further increased based on the income. Awareness and education on investment and insurance can build the confidence further to expand the portfolio,” she added.

“Financial independence might mean different things to different individuals; however, the essence is to ensure having financial planning understanding to make independent decisions. This International Women’s Day lets support spreading the awareness and education on financial independence for a future that is well-planned and secured,” she concluded.