In today’s world, women have re-invented themselves both in their professional as well as personal lives. They are constantly breaking old barriers and transcending to new heights within society. In light of this, the need for women to take control of their own finances has also become undeniable. So if you’re a woman moving along these lines and looking for help on how to manage your finances, here’s what you need to know:

• Confidence is key

Studies have shown that women are more likely to be conservative investors. They prefer assured returns even if it means less growth when they are in the accumulation stage of their investing years. Then, the first thing you need to do is become confident in your skills as an investor and not rely on anybody else for your financial security. By learning about money management and investing, you can improve your ability to undertake financial planning more effectively. 

• Consult a professional

In the process of developing your confidence to make it on your own as an investor, it is good to opt for professional advice. Consulting a certified financial planner or wealth management firm can ensure that you don’t make any costly mistakes if you are a beginner in the world of finance. Subsequently, since it makes the planning process extremely efficient and seeking professional financial advice has become extremely affordable, there is no reason to abstain from it.

• Take risks early in your career

Apart from being risk-averse, in being a woman, it is possible that you may take a break from your career owing to pregnancy, maternity, or to help with your ageing parents and other similar reasons. In these periods you will want to mitigate risk to secure your finances. So, the early stage of your career is when you can afford to take the most risks that can pay-off in the long run. This is because at the inception of your career is when you may not have anyone else who is dependent on you or your income.

• Invest in skill development

In India, studies show that women earn 20% lower wages than male employees. This means that your capacity, as a woman, is diminished in comparison to men. One way to lessen the effect of the gap is to invest in skill development through higher education and certification programmes, as people with such qualification tend to earn significantly more than those without the same. 

• Don’t avoid purchasing health insurance

The process of financial planning includes purchasing the right type and quantity of insurance as per your requirements. In line with this, it has been noted that women generally tend to incur higher healthcare costs than men. Therefore it is imperative that you get health insurance coverage. This can help you keep your savings and other goals unaffected by  lessening the burden when it comes to paying medical bills.

• Keep an emergency fund

While accidents and emergencies are unpredictable, they usually require a quick response which includes financial assistance in most cases. Furthermore an event like losing your job or incurring a large unexpected bill can put a substantial dent in your savings or force you to take on debt. By keeping an emergency fund amounting to 3-6 times your monthly expenses, primarily composed of liquid funds, you can ensure that your finances are secure in the event of any contingency – from a short notice delivery, to a medical emergency.