5 Key Financial Lessons Every Woman Needs to Know | Espresso


Key financial lessons women should learn to take care of their personal finance.

March 16, 2023
Key financial lessons women should learn to take care of their personal finance.

Indian culture regards women as equals and celebrates their contribution to the growth and development of society. Women enjoy high autonomy and respect and are increasingly participating in all aspects of life, from politics to business. Along with caring for the family, it is essential for women to be financially independent. They must work to secure their financial future and focus on their personal finance. And financial literacy is a crucial part of personal finance.

Findings of a recent survey published in LXME's Women and Money Power Report 2022, point out that around 49% of women in India do not invest at all or are unaware of their investments. It is, therefore, extremely important for women to work towards staying informed about their finances.

Here are five key lessons every woman should learn when taking care of her personal finances.

Educate yourself in the financial field

The foremost lesson for women is that they should educate themselves about the financial world and get equipped with the right resources and guidance to be more competent in making financial decisions.

Investing in financial literacy is of paramount importance. Women should educate themselves and become aware of different investment options, financial terminologies, and other money management topics.

Financial education helps in planning investment strategies and planning for retirement. Being updated with the financial landscape, women can make better investment decisions and secure their financial future. The greater the knowledge of financial matters, the better equipped one is to make sound decisions with money.

Plan for the future

Planning is crucia ver, planning for retirement should also be done as early in life as possible.

A sound financial plan can include budgeting, saving, investing, or setting up emergency funds. Create a budget that accounts for all the expected incomes and expenses. Formulate investment strategies to grow wealth over the long term and start saving for retirement to take advantage of compound interest. All these should be well-planned at the earliest.

Create an emergency fund

Emergencies can bring unexpected expenses that might not have been budgeted for. Hence, having an emergency fund is key to handling any such unexpected expenses and being well prepared for any emergencies.

Women must create an emergency fund and have enough money in it to cover expenses for at least six months. Emergency funds act as a cushion in times of unexpected events that may lead to huge expenses or losses.

It is also crucial to keep a check on an existing emergency fund. Reviewing it periodically and adjusting it as per your needs and financial situation can help tide over unfortunate circumstances. This can ensure financial security and stress-free mind amid unexpected events.

Control debt

It is vital for women to understand the importance of managing their loans or overall debt responsibly. Before taking on a loan, understand the terms and conditions, interest rates and the tenure of the loan. Debt should be managed properly and paid off as quickly as possible to maintain financial stability. It is always prudent to avoid loans if situations are manageable with own funds.

Take health and life insurance cover

Another crucial financial lesson for women is to opt for health and life insurance covers. An insurance policy can protect the entire family against any financial hardships due to ill health or unfortunate events. Health insurance covers medical expenses, while life insurance provides financial security to your family in case of death. It is important to compare different policies and select the one that meets most needs.

Managing personal finances can be a daunting task for women. These key financial lessons can help women gain the confidence and knowledge needed to take control of their finances and secure their financial future.

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R. Kalyanaraman
by R. Kalyanaraman

Chief Executive Officer

I am a sales guy at heart with utmost willingness to listen to people – customers, employees, competitors et al. Nothing gets me a bigger adrenaline rush than an interesting conversation with my customer!