How women can take charge of their money and personal finance
4 min read . Updated: 07 Mar 2023, 02:22 PM IST
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Investing, financial planning, and money management has always been portrayed as men’s domain. Even with women excelling in all fields, they are primarily dependent on their male counterparts in taking investment decisions, their financial planning still takes a backseat.
In an interaction with Livemint, Renu Maheshwari, co-founder Finscholarz Wealth Managers said for any woman to figure out what they need to do to take charge of their personal finances, they should first understand that what is stopping them from taking charge!
In our experience, the obstacles to taking charge personal finances can be classified into-1) Socio – economic and legal issues (Emotional glass ceiling) 2) Lack of knowledge or information 3) Lack of motivation and confidence, she added.
Lack of knowledge and information
It is an objective hindrance in trying to take charge of finances. Unfortunately, personal finance has become a technical subject but still not taught under any curriculum. An attempt is being made by a lot of people in the ecosystem to bring this curriculum into schools and colleges. Till such time, women will have to take the initiative - to learn basic skills of personal finance management.
“There are a lot of books written around it. I would recommend picking up any of those books. And going through one book in a systematic manner rather than looking at lot of books in a random fashion. After getting a basic knowledge get the services of a fiduciary advisor to determine the right path and stay the course," said Renu Maheshwari.
Money and personal finance is a very important matter which should not be learnt by hit and trial.
So, till such time you gain expertise over the subject, take help of a fiduciary advisory advisor, she suggested.
Socioeconomic and legal reasons
A lot of women are part of an ecosystem or families / communities where they are actively discouraged and sometimes even reprimanded for taking decisions about their own money. Women usually do not get their fair share of inheritance either. With the primary responsibility of family care and domestic chores objectively leaves lesser time in their hands to spend on money management. Add if they are not comfortable and confident with money, they are not able to muster the courage to take charge. A lot of times they do not have any money of their own on which they have a right or say.
How women can take charge of their personal finances investments?
No work can be done without the inner desire or the motivation to do it. A lot of women find it cumbersome to find time beyond their office work and domestic responsibilities to take care of their money and financial assets. Lack of motivation in managing for managing money comes from the above two factors as well. But understand that this is one of the lifesaving skills that you need to have. Even if you are a working woman, most probably your income will be lesser than your male counterpart, because of your career break for taking care of family. Women don’t get equal money in inheritance either.
To add to that, women live longer than men. So even if they have the best life partner, there can be a time in life when they will be left on their own. And most probably that would be the most vulnerable time of their life. Full control over their own money will give them the confidence to live their twilight years on their own terms, under any circumstance.
“On this women’s day - we appeal to the men in the ecosystem. Please become allies in the growth and financial emancipation of their daughters, their sisters, their wives, and their mothers. Support them when they need encouragement. Do not ridicule them when they make a mistake. Help them with the knowledge and information which they may not have. Understand that it is not just an emotional need, but an objective necessity for a woman to have her own money and a say in their own finances," said Renu Maheshwari.
Women are taking charge of their financial standings as they are getting exposed to information and learnings via all the channels and opportunities that are available. Financial security is important for women as much as it is for men.