Money matters: Leveling the financial playing field for women

The modern woman is challenging the conventional beaten path and gaining a deeper understanding of the importance of finance. For instance, insights from Groww show that the year 2024 alone saw a 100% year-on-year growth in women’s involvement in mutual fund investments.

As the importance of finance in our lives continues to grow, the potential for women in finance is more than ever. This article talks about the incredible benefits of investing as a woman, dismantles stereotypes, and demonstrates how women can compete on the same level as men in the financial arena.

Why is finance important?
 

Finance plays a pivotal role in everyone's life, irrespective of gender. Through a deep understanding of finance, women can attain financial independence, establish a solid groundwork for their future, and effectively accomplish all of their aspirations.

Assuming command over their finances enables them to make well-informed decisions, maintain financial stability, and be ready for unexpected situations.

Financial literacy empowers women to actively engage in shaping the economy and contribute to the prosperity of their families.

Illustration #1 –

Financial planning for women
 

1. Educate yourself about financial matters
2. Protect your income and assets
3. Build an emergency fund
4. Set clear financial goals
5. Invest for the future
6. Plan for retirement

The transformative impact of women in finance
 

When women actively engage in finance, it creates a ripple effect beyond their personal lives. By embracing financial responsibility, women become role models for future generations, inspiring younger girls to strive for economic independence.

Increased women's participation in finance leads to diverse perspectives, driving innovation and fostering a more inclusive economy. Learning the importance of finance empowers women to play a significant role in squashing gender disparities and fostering a more equitable society.

It is crucial to acknowledge that women possess the potential to reshape the financial landscape, leading to a personal benefit of investments and broader community advancements.

Taking the initial step: The importance of finance
 

Embarking on a financial journey might appear overwhelming, but it pays to remember that every successful endeavour starts with a single step.

Educating yourself about various financial concepts is essential to making informed decisions about budgeting, saving, investing, and debt management.

Here's a simple example of budgeting –

By following the 50/30/20 rule, you can allocate 50% of your income to necessities (such as household necessities), 30% to entertainment, and 20% to savings and debt repayment. This helps track expenses, prioritise savings, and achieve financial goals.

It is important to seek guidance from financial advisors or attend workshops designed for women interested in finance. These resources provide invaluable networking and connections with other women who have successfully negotiated the financial landscape.

Illustration #2 –

7 Mistakes women should avoid while investing
 

1. Neglecting to review and adjust
2. Lack of diversification
3. Emotional investing
4. Timing the market
5. Ignoring research
6. Impulsive trading
7. Overlooking fees

Never be afraid to learn
 

In the world of finance, knowledge is power. Developing a curious mindset and actively seeking out resources that can enhance financial literacy are key. 

Online resources, books, podcasts, and courses designed especially for women in financial education can be very useful sources of knowledge. Keep in mind that learning about finance is a continuous process, and the more effort is put into education, the more comfortable it will feel to manage finances.

Getting started: Overcoming barriers
 

Becoming financially independent can seem like an uphill task, especially when starting out. But the journey will become easier when questions are asked, and a learning attitude is adopted.   

In this case, it is vital to connect with trustworthy financial professionals who can help with goal-setting, budgeting, and investing. Look for financial workshops, seminars, or networking events, in proximity to your location that cater to facilitating the interest of women in finance. You can even explore online platforms such as Facebook groups, Reddit communities, and forums dedicated to personal finance.

How to follow the investment?
 

Keeping track of your investments is an important aspect of financial management. Learn more about the different types of investments available, such as deposits, stocks, bonds, and mutual funds.

Consider your risk appetite, potential returns, and financial goals while always keeping track of your investment decisions. Regularly review your portfolio and seek professional advice to ensure your investments align with your objectives.

Many financial institutions, like IDFC FIRST Bank, offer investment products that cater to the specific needs of women, providing you with personalised guidance and support along the way.

Bottom line

As women, it is essential to recognise the importance of finance. It helps with financial planning and builds the foundation of savings and investments. With this thought in mind, FIRST Bank Power Savings Account is a specially tailored financial solution designed to meet the unique needs and aspirations of women in India. This account empowers women to take significant strides towards their overall financial well-being. 

With competitive interest rates, the FIRST Power Savings Account offers one of the highest rates available for savings accounts, ensuring that your money doesn't remain idle but grows over time, fulfilling your financial requirements.