When it comes to being financially savvy, most women in the country find themselves in positions where they have little say and financial literacy and inclusion are a distant mirage for many homemakers. Although younger women in the country are bringing positive shifts in the narrative by taking on the mantle of investing their money by themselves and refusing to seek assistance from their fathers, brother, or partners, the scenario isn’t as encouraging for women who have been confined to domestic realms especially, homemakers.

While last-mile internet connectivity and the advent of digital tools and portals that facilitate financial awareness have emerged as a boon for many women, older women continue to lag far behind as most of them have only known being granted a monthly allowance by their husband as the only legitimate link with the family’s finances.

On the brighter side, there hasn’t been a better time than today for women to take up the reins of money management. There is no dearth of troves of information about financial concepts on the internet that can be accessed for free and the digitization of saving and investing infrastructure has eliminated the need for brokers and third parties thus making it easier for women to save and invest by themselves. Here are a few ways how homemakers can take the first step towards financial inclusivity and attaining the capability of handling their money by themselves.

The domino effect

Letting go of fears and inhibitions can give women the much needed-push to start saving and investing and collective efforts in groups can be a great starting point. For instance, younger women in a family who are well-versed in the tenets of money management can start having conversations with the older women in the family and teach them the basics of saving and investing. Similarly, homemakers can either imbibe information from younger women in their families or can also start knowledge-sharing exercises with their friends by taking help from the internet. The benefit here is that women-only groups can be safe spaces where women can freely ask questions and voice their concerns without feeling judged.

Drafting goals

Starting to save is the first stepping stone in any financial journey. Once, you have become adept at sticking to your budget and setting aside a certain sum every month in your savings stash, the next step is to start investing that money. However, any investment decision has to be preceded by deliberation about your goals because your investment choices may yield unfavorable outcomes if you lack clarity about your goals. Goals give you an idea about the financial requirements that you will have at different stages of your life and this clarity helps you choose the right kind of assets for every goal.

Choosing the right investment avenues

Not all asset classes are equally easy to invest in and manage. Some require an extensive understanding of the markets and economy while others are relatively easier to manage. For women investors, who are familiarizing themselves with the arena of investments, it is more judicious to choose asset classes whose dynamics are easy to understand. In this regard, mutual funds can be a great starting point.

The available variety of mutual funds ensures that novice investors can comfortably meet their diversification goals. Starting from gold ETFs to safe government bonds to various kinds of debt and equity funds, one can create an optimal asset allocation depending on their timelines and risk-taking abilities. Also, you do not need to amass a lumpsum to be able to invest in mutual funds which are very convenient for women who are not financially independent. Systematic investment plans (SIPs) can be started with as little as Rs 500. Tracking the performances of mutual funds over time is also easy as data on funds are easily available in the public domain in a standard format and allow for day-to-day tracking. The best part is that you can start small and invest regularly and see the power of compounding in action.