Being financially independent is the ultimate goal of every woman as this not only brings them self-respect but also provides credibility in the society. The 30’s and 40’s are a crucial period for career-oriented women, as they mark the period when they have gained a firm foothold in the career of their choice, and are financially stable. However, this is also the period when their personal life goes through a lot of changes. From being single and independent, they get into a wedlock and additional responsibilities come along. From being married they step into motherhood where happiness is multiplied many folds and so is accountability. This is also the period where women are required to devote their time to elderly care be it for their parents or their partner’s. To add on, this period also demands planning for retirement. Having financial commitments at one end and emotional at the other, it is definitely anything but easy to choose between the two.

With a planned approach to finances, this decision can be made less difficult. As a financial planner, here are a few things I suggest women should consider while actively working for their future security:

• Emergency Corpus – most of us work in private companies and job security is always a concern. At any given point in time, you should have 4 to 6 months of your monthly expenses available in liquid which can be easily utilized in case of any exigencies. This also gives you some time to look for new opportunities.
• Planned Sabbatical – while almost every employer in India provides 6 months of maternity leave, as a career-oriented woman, you feel this is more than enough. However, reality hits when the bundle of joy, of around 3 kgs, arrives in your arms and all you want to do is spend time and know this bundle of joy better. You must look to plan for your family finances keeping in mind a career break of 2 years wherein your cash flow is taken care of without any ‘active’ income from your end. Now, whether you actually need the 2 years break or not is something you can take a call on later but just providing for it makes one thing less to worry about.
• Cashflow Management – today most of the households have dual income i.e. both the husband and wife are working. With joint income comes bigger life goals. In order to make the dream a reality, EMI i.e. equated monthly installments seem to be a big aid. However, if the cash flow is not planned well then it can get tough to take care of any sabbaticals. While looking at EMIs always keep in mind that it should not be more than 35% to 40% of your monthly take-home income.
• Protection – Every working woman needs to protect herself and have a basic term cover. In case of an eventuality, your family will go through emotional stress undoubtedly but a life insurance cover would serve as a financial shield for your family and you would protect them from financial stress. Having said that, it is equally important to have health insurance in place for you and your family. Relying completely on the employer-provided insurance may not be the best thing to do as a medical requirement may arise at a time when you are switching your job i.e. have quit the existing one but not yet joined the new one. Further, it could get difficult to get any health insurance if you have developed a medical condition hence getting a cover when you and your family are hale and hearty works well.
• Investments – There is always a difference between savings and investments. Women are generally tagged with the innate ability to save, which is a very good trait. However, this can get better if it turns to investments. Savings mean parking your money aside whereas investments mean making your money work as hard as you. An SIP (systematic investment plan) involves a disciplined investment (generally) in Mutual Funds. An SIP can be converted into an SWP (Systematic Withdrawal Plan), which provides payouts at the frequency you need when you look to take a sabbatical. This would eventually become the passive income which can support your cashflow requirements in retirement.

Of course, these are a few simple things for you to consider but it’s easier said than done. Your financial planner can help not only plan but also action your requirements better. So start being more considerate towards your life goals and get in touch with a Certified Financial Planner if you haven’t yet. Happy investing!