Financial management for women is growing in significance as the number of women in the workforce is increasing. The number of women investors in mutual funds has seen a drastic increase as per recent numbers¹. There is a slow yet definite shift in the traditional thought process that men handle the financial decisions and are at the helm of investment dynamics. Here are reasons why financial planning for women is important.

The life expectancy of women is higher:

Did you know that women tend to live longer than men²? This essentially means that the retirement corpus needs to be built for a longer horizon. The corpus should take into consideration the higher medical expenses and inflationary trends. It is not very common that the wife’s life expectancy is considered whilst planning for retirement corpus. Men continue to dominate the scene and the corpus is generally planned to take into consideration the age of men alone. Thus, there is a need to build a plan for women independently to cater to their specific needs as well.

Conservative approach to investments:

The women are generally more averse to risk³. Thus, making it important to start early on, it is also necessary for women to educate themselves about investments and look for investments that may have the potential to optimize returns and minimize risk in long run. Researching well about your investments will also enable you to undertake informed decisions.

Discipline and commitment:

Women are known to be better at both these valuable qualities among both genders. These are the two pillars for building the required corpus. Staying disciplined and committed to your investments can help the magic of compounding unfold in the most unbelievable manner. The longer the tenure, the higher can be your corpus. Continuous cash inflow into investments can build meaningful wealth that you can use to achieve your financial goals in long term. It is only logical that women extend their virtues to the investment world and achieve true financial independence.

Putting yourself first:

While women have finally learnt that they should also live for themselves and follow their passion, they are yet far away from understanding the true meaning of financial independence. They still are not entirely in control of their finances, this could either be due to a lack of confidence or due to putting other priorities ahead of their own. It has become a rarity to see women plan for their retirement goals before they plan for their children's education or even family vacation. It is important to give women financial advice that is truly curated for them. There is also a requirement for the industry to the changing needs of women and introduce women-centric investment options.

Financial management for women is in a true sense women empowerment. Let’s take a step towards it by undertaking the pledge to plan your own finances.

1.https://www.hindustantimes.com/business/the-rise-of-female-investors-in-the-post-pandemic-era-101637933271258.html
2.https://www.livescience.com/why-women-outlive-men.html
3.https://gap.hks.harvard.edu/risk-background-how-men-and-women-respond

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.