Manage your money, don’t let money manage you!
Historically Indian women have always been ‘savers’. They take charge of expenses to run their household and children’s needs and in turn save a part of it for any contingencies. I’ve often heard my grandmother say that in an emergency she used to dig into her hidden stash.
While these methods may not be relatable for the women of today, the idea sure is. We can now move from being savers to ‘investors’ at the click of a button! Investing helps multiply savings and creates wealth. However, many of us don’t get involved either due to fear or ignorance or laziness.
The day I started earning, I also started thinking of investing. Looking back, here’s what worked for me
- Take informed decisions. Don’t be impulsive when it comes to investments. I know sometimes we are tempted to pick up a scheme just because a friend or family member did it but that’s not a wise way since our needs and requirement may differ.
- Seek advice but also do your own research. Listen to news related to it and track market trends. It’s good to read up on the company you are investing in and glance through their financial reports. Read up on financial instruments offered and various schemes available in the market or compare various aspects across a set of options. Discussion always helps. Learn from others’ experiences. “An investment in knowledge pays the best interest”, said Benjamin Franklin.
- Diversify as much as you can. Build a strong portfolio comprising of mutual funds, government bonds and fixed deposits, gold and insurance to diversify and balance risks.
- Spread out your financial work.Learn over few days, discuss over time and spend little time each day so it doesn’t get monotonous and overwhelming to do it all in one go!
- Go with your intuition and instincts. We women have a super power than men don’t; we are more intuitive and perceptive in general. So use that to invest.
- No investment is small. A small investment will give a small return. But it will reap benefits nevertheless. Start slow until you build your confidence, comfort and risk taking appetite.
- Plan for unforeseen life changing situations. While none of us want to think about it or hope for it to happen, life may bring you to a situation where you are alone and financially unprotected. Stay involved in financial discussions and take joint decisions so you can manage in future.
These simple, yet effective tips can go a long way in making you financially independent and empowered. Remember Warren Buffet’s advice, ‘Never depend on single income. Make investment to create a second source.”
The author, Prerna Wahi is a blogger and writer and owner of https://prernawahi.com. Views expressed are author’s own