If these statements sound familiar, you might happen
to be one of the many women who tend to neglect their
individual financial affairs as they busy themselves
putting their family’s interests over their own. You can,
however, take solace from the fact that it’s not only the
‘everywoman’ who ends up making financial mistakes;
expert money managers are not immune to them
either (See: Money Lessons From the Women On Top).
Read on to ascertain the pitfalls you must avoid and
the money mantras you must abide by to secure your
financial future.
Avoid common traps
Leaving financial decisions to male members of the
family tops the list of mistakes women make. “Even
educated working women tend to adopt this approach.
Some women do not access their net banking ID and
password and are not aware of the nitty-gritties of the
joint accounts they hold with their husbands,” points
out certified financial planner Tejal Gandhi, CEO and
founder Money Matters. Often, they are not in charge
of their finances. “It could be because they do not draw
an income or they wish to avoid fights with their male
relatives – usually the spouse,” says financial planner
Shweta Jain, CEO and founder Investography.
Quite frequently, women ignore creating any
assets of their own – a mistake that could have serious
consequences later. “Even those who hail from well-
off families need to create own assets. Some end up
splurging their family’s or own income, only to regret
later,” says financial planner Kavita Menon. If your
spouse has taken on the responsibility of paying EMIs
while you take care of the household expenses, make
sure you have a share in the property. “Some fear
numbers and assume that making financial investments
involves complex figures, which isn’t their cup of tea,”
points out Gandhi. Also, don’t follow the herd. ”Don’t
buy a house or gold simply because you have started
drawing an income. Evaluate your liquidity and
future needs before locking money into physical
assets.” she adds.For a safe future
The first step towards a safer financial future is to raise
your levels of financial literacy, without which you will
be vulnerable to frauds perpetrated by unscrupulous
bank officials, distributors, cyber thieves, or even close
relatives. Also remember, investing in ‘safe’ instruments
like bank fixed deposits or a public provident fund (PPF)
will not suffice. You have to look at staying invested in
equities to achieve your goals.
Women are rated higher than their male
counterparts when it comes to risk management and
patience. “Most women are risk-averse by nature. They
need to invest in instruments that beat inflation. They
can test the waters first with SIP (in equity schemes) or
small-ticket investments,” advises Jain.
So prioritise your goals and allocate resources to
each with a well-thought-out strategy. Finally, make sure
that you have a pure protection term cover and a health
insurance plan in place.
[email protected]Women and the Science of
Managing Financial Health
F
amily comes first”
“My father (or husband) handles my
finances as he knows best”
“I would rather buy a house than dabble in
risky instruments”Taking complete charge of your money affairs is the
key to securing your financial future,
says Preeti Kulkarni42 Outlook Money March 2018 http://www.outlookmoney.com