You might not be inherently affluent or good at handling money. Managing your money is a long process that needs to be handled carefully. And it doesn’t matter whether your father, brother or husband has strong financial backup, as a woman you need to be financially independent. Financial independence for women is important in every aspect. Financial independence gives you the choice to lead the life that you want. More than just the money to pay for everything you need, it gives financial freedom and a secure feeling to lead a happy life of your choice. So, if someone asks why you are studying or pursuing higher education, without any prick of conscience you can say “to become financially independent”.
Your path to financial freedom may be full of hurdles, but you need to achieve that through sheer determination and perseverance. Social media is flooded with reels and videos with highlights of achievements, starting a business, purchasing a home, and bagging a high salary. While achievements are celebrated, most people’s experiences are not like this. Some people advance on the path to financial independence by taking small, actionable items while others may be out of control due to circumstances. Realizing that you are not alone in this journey can help you make actionable changes.
Path to financial independence for women
No matter whether a woman is married or not, achieving financial independence is very important. Steps to achieving financial freedom involve setting and working on financial goals, managing your money efficiently, and making great financial decisions. The concept of financial independence means different things to different people. Achieving financial independence for women, helps you move forward with confidence and a feeling of security. Here are a few easy tips to meet financial independence for women.
Set financial goals:
No matter if it is financial independence for women or anyone, what you want to achieve financially is determined in this step. Be it saving for retirement, buying a home, owning a vehicle, finding money for shopping or saving for retirement, define what you want to achieve financially. Make your financial goals SMART- Specific, Measurable, Achievable, Relevant, and Time-bound.
Plan a Budget:
A well-planned budget can help you understand your income and expenses. It also helps you to identify the areas where you can reduce your expenses and save more. Using a Google spreadsheet or budgeting app would be more helpful to track your finances and see where your money is going.
Get the proper financial education:
Learning financial topics such as how to invest money wisely, save, and budget is important if you want to achieve financial independence. Understanding more about investment and saving can help you make better decisions about your money. You can also attend financial courses or consult a financial advisor to get more information.
Invest your money thoughtfully and regularly to become financially independent. You don’t have to copy the videos of social media influencers simply. Understand that the financial situation, investment objectives, and financial goals vary with different people. Hence, you should pay great attention while investing your money in any plan.
Protect your financial future:
Having the right insurance coverage is important in achieving financial goals. Create a will or estate plan to protect your financial assets and loved ones.
Remember, achieving financial independence is not a one-time event, but rather a continuous process of managing your finances and making smart financial decisions. It’s important to regularly review and adjust your financial plan to ensure that it aligns with your goals and changing circumstances.
Reasons why financial independence is important for women
Being financially independent offers several benefits for a woman. Women are capable of handling their finances independently and take financial decisions without taking any help. The prominent female financial managers and financial advisors are a testimony to this fact. So without a second thought, you need to work towards achieving your financial independence. Given below are a few reasons why it is important to have financial independence for women.
Financially independent women will be more capable of taking care of themselves and their families. With much economical security, they don’t have to depend on their husband or family for financial needs or support. Financial security is closely connected with strong decisions and self-sufficiency which is very important to fight against financial discrimination and abuse.
Control over life decisions:
Financial independence gives women more control over their own lives and the ability to make decisions in every aspect, especially their own financial well-being. Getting control over life decisions is important for women who may not have the same level of financial decision-making power as their male counterparts.
Spending capacity of the family:
In this world of regular inflation, it is impossible to lead a sound family life with only one person’s income. An earning woman can support her life in every possible way while having greater financial independence.
Withstand an unexpected expense:
Emergencies can pop up at any time, and being able to withstand that unexpected expense is an important reason why women should be financially independent. Having an emergency fund can help to counterbalance these unexpected expenses like paying a medical bill, replacing a damaged car part, fixing a leaky kitchen roof, etc.
Research has shown that financial independence for women can give them improved well-being and happiness. Financial independence can give women the freedom to pursue their passions and goals, rather than being limited by financial constraints.
Self-respect and respect from society:
An earning woman doesn’t have to ask her husband or family for money for her expenses. Women who are dependent on the family for their money will often be ignored and face disrespect. On the other hand, a financially independent woman gets respect from every member of the family and her opinion will be valued for every important decision in the family.
Achieving financial independence can help to close the gender pay gap and promote greater gender equality. It can also help to reduce the burden of unpaid labour that often falls disproportionately on women, such as caring for children or elderly family members.
The rising living cost and stagnating wages will make it difficult for many people to meet everyday expenses. An earning woman can easily bridge the gap in this situation and lead the family successfully. While it is recommended to cut back on spending to save money, it may not be possible to cut back on spending more in a highly inflationary environment. If you find it difficult to manage your expenses and savings, it might be time to consider asking for a pay raise at work or even switching to a high-paying job at the earliest. Taking on a side hustle can also help you find more money for your additional expenses while staying with your current company. Overall, financial independence is an important goal for women as it can provide them with the resources and autonomy to make decisions about their own lives and well-being.