Women have been transcending societal barriers and at the very same time, proving that industry is not a playground just for boys anymore. They have been re-inventing themselves both in their professional as well as personal lives. In line with these changes, the importance of having your own financial plan as a woman has become undeniable. However, in the world of finance, there is still very little guidance that caters to female investors particularly. To overcome this void, we put together a few points. So, here are some points what you need to know about finances as a woman, depending on the path you choose for your career and life:

Early career phase:

Regardless of the lifestyle you end up choosing, 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 this stage you may not have anyone else who is dependent on your income. While it may seem counter-intuitive, you should use this time to start the gears rolling on building your corpus towards retirement. Investing in equity mutual funds through a systematic investment plan (SIP) will be a good option for you. To achieve your short term goals, you can consider traditional routes like opening a fixed or recurring deposit account. Finally, make sure you purchase at least basic coverage in terms of health insurance.

Single working professional:

If you choose to remain single and focus more on your career, then you should direct your financial plan at achieving your long term goals. Increase the amount of money you put aside towards your savings for retirement. Suppose you are yet to purchase a home, this is the right time to think about it. You should work towards clearing any outstanding loans and unpaid credit card bills as this can help you procure a home loan at a lower rate of interest. This is essential as you will have to sustain the EMI payments and other commitments you may have – like contributing towards the care of your parents –  on a single income.

Married and working:

As a married working professional, who may have or plans to have children, financial planning becomes all about optimising your time so as to be able to track and reorganise your investments if needed. Since your household will be functioning on the assumption of two incomes, it is advisable that you purchase a term life insurance plan in this period. When you get older, investing in the National Pension Scheme and making Public Provident Fund contributions can increase your tax efficiency and contribute towards your retirement positively.

Single working parent:

As a single parent you cannot afford to take the same kind of risks a single working professional would be able to. This is because, apart from your own personal needs and goals, you also have a child (or children) dependent on your finances. In this sense then, mitigating the risk associated with your portfolio should be top priority. Apart from purchasing life insurance cover, you should also try to increase the contributions towards your retirement by investing in annuities and balanced mutual funds. It is also imperative that you maintain an emergency fund of 3-6 times your monthly expenses including EMIs, primarily composed of liquid cash.

Homemaker:

Being a homemaker you will not be pulling in an income of your own, so you need to make the most of the money that you set aside for your household. Consider opening a fixed deposit or recurring deposit account with a bank or post office. You can also think about investing in gold through mutual funds in the bullion market.

Keeping these points in mind, you can make the most out of whatever lifestyle you choose. Apart from this, consulting a certified and experienced financial planner or wealth management firm can help in identifying the best opportunities for you. Here, it would be a good idea to enquire about their track record when it comes to financial planning specifically for women.