Each year, March month becomes a whole month of celebration for women in every field. Being a woman, it feels like we need to be celebrated throughout the year. Especially in today’s day, women are leading from all fronts, from flying a spaceship to being a finance minister of the country. So why not manage your own money? In today’s article, we cover the six myths around women and money management – also covered is how to fix them.
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Myth #1: Men Are Better at Finance Than Women
How to Fix It:
- Surround yourself with role models, find success stories highlighting women’s achievements, and work with someone willing to provide comprehensive financial advice and education (advisor/mentor) even as you work toward your financial goals.
Myth #2: I’m Too Busy to Deal with My Finances
How to Fix It:
- Start by allotting time each week or month to review your financial situation, track your expenses, and plan for the future.
- Remember, taking charge of your finances is a proactive step towards creating the life you desire.
- Tracking your spending habits, cash flow, and budgeting are the key steps to start with on your financial journey.
Myth #3: Investing is Complicated and Only for Men
How to Fix It:
- Start by educating yourself about different investment options, such as stocks, bonds, mutual funds, and real estate.
- Seek professional advice from a financial advisor who understands your goals and risk tolerance.
- Remember, with the right guidance, investing can be an accessible and rewarding endeavor.
Myth #4: I’ll Save More When I Have More
How to Fix It:
- Start by creating a realistic budget and setting aside a portion of your income for savings each month.
- Even small amounts can accumulate over time, providing you with a safety net and the freedom to pursue your goals.
- It’s extremely important to put time on your side and to allow the power of compounding to work for you.
Myth #5: Women Are Risk Averse and Not Good Investors
The fact that women make investment decisions all the time: purchases for the household, how they invest their time, investing in education for children, and running a business. There is so much competence in investing as a skill generally across the spectrum of life.
How you invest your time, how you invest in your community and your family, these decisions require the same amount of attention as investing in the market. Just because you might not know what a P/E ratio is, it doesn’t mean you will be a bad investor.
How to Fix It:
- Women aren’t risk averse—they are risk aware! “Risk averse” is a very demeaning term, and second, being “risk aware” is an incredibly positive skill.
- Start small, ask for help, take advice, and learn.
Myth #6: One Size Fits All Financial Solutions for Women
How to Fix It:
- Don’t trust the hype around these one-size-fits-all financial success plans.
- It doesn’t mean you aren’t a go-getter or driven if you don’t buy into them.
- These plans are often more fiction than fact, and just because they worked for a couple of women does not mean they will – or even should – work for you.
- Never lose sight of the fact that you are unique, and your financial needs are, too.
Age-wise Financial Planning Steps to Follow
Women in Their 20s and 30s:
- Budget, cash flow, set goals, save for retirement, buy sufficient insurance – term life and health insurance.
- Have an emergency corpus for medical purposes, marriage expenditure, baby showers, and sabbaticals.
Women in Their 40s:
- Accumulate retirement corpus, pay off debts.
- Have term life insurance protecting liabilities and goals for children’s education and dependent parents.
- Critical illness cover along with higher health insurance coverage.
Women in Their 50s:
- Plan for the distribution phase, and manage the empty nest needs.
- Have a hobby that keeps you engaged.
- Continue enhancing health insurance coverage in line with health inflation.
Women in Their 60s and 70s:
- Enjoy retirement, and continue health insurance.
- Maintain sufficient emergency corpus.
- No need for term life insurance.
- Plan for the transition of wealth to the next generation.
Smart Tips for Money Management
- Make sure you have a property in your name—shelter overhead is important.
- Women should keep money separate—no joint accounts.
- Have control and charge of your own money—take help from a mentor/advisor.
- While paying for marriage, keep all bills and lists of gifts received and given by parents.
- Married Women Protection Act (MWP): Ensure your husband’s life insurance has this covered so that nobody can take your right away.
- Know this: Prenuptial Agreements are not valid in India—it’s illegal.
- Financially, women should work and contribute to self-growth.
Conclusion
It’s essential to debunk the myths that hold women back from achieving financial empowerment. Taking control of your finances isn’t just about saving or investing—it’s about creating the life you desire. By understanding and addressing these common misconceptions, women can embrace financial literacy, invest wisely, and plan their futures with confidence. With the right guidance and proactive steps, every woman can build a secure and prosperous financial future.
