As per LXME’s Women and Money Power Report 2022, 49% of women are either not investing or are unaware of their investments. 58% of women have no insurance (life or health) in their name. 92% of women said they do not access any financial investment-related websites. Yes, the number sounds like an echo.
Well, it’s time to change this.
If you’re not in charge of your own money, you’re not in charge of your own life. We will not be fully equal with men until we are financially equal to men. It’s time to prioritize your Financial Health this Diwali
As you worship goddess Lakshmi to bestow you with prosperity, look at the goddesses in your own family, be it yourself, your mother, your sister, your wife, or your daughter, and
them with the ultimate power of financial freedom. Here’s what you must do:
1. Light the lamp of knowledge: Lighting a lamp eliminates the darkness around us. Similarly, dispel the ignorance around money and enlighten your life with the right financial knowledge. Conquer your fears about money and take charge of your finances. Knowing about cash flow, investment options, how to select investment instruments for your goals, etc is always a positive point that will help you be more financially empowered.
2. Declutter and organize your finances: Like you clean your houses and offices before Diwali and give away the things that are no longer needed, you also need to follow a similar approach with your money. Assess your budget and find unnecessary expenses that could be eliminated; this will allow you to save more. Ensure that your investments are in sync with your goals or objectives.
3. Invest in Gold but the smart way- It’s that time of the year again when we flock to the streets to grab a piece of yellow metal. Physical gold, while considered auspicious and purchased for its aesthetic value, is ineffective as an investment option. This is due to the loss in value on resale. So this Diwali, invest in gold the smart way with gold mutual funds. It will act as a low-risk addition to your portfolio. As an asset, gold’s stability has stood the test of time over the years!
4. Benefit from diversification: Don’t you enjoy the variety that the Diwali celebration offers you? There are so many sweets and savoury options in your Thali! Similarly, proper diversification in your portfolio helps you enjoy the benefits offered by various financial instruments. Make sure your money is being invested in a variety of asset classes, such as equities, debt and gold based on your financial goals. Remember, that diversification is essential for a successful investment.
While you’re planning your investments, here is a checklist of critical goals that you should plan for:
Build an Emergency Fund: An emergency fund can help one stay afloat in times of a financial crisis such as the current one. This fund should be at least 6 months of your expenses and be quickly and easily available when required. The money should be liquid since you’ll need it when an emergency strikes. This fund can be created with a savings account or with liquid and arbitrage funds that target better returns.
Plan for your Retirement Fund: Retirement at some point is almost inevitable! Your expenses will continue but income will stop, So you’ll need a good financial cushion to sustain you through your dream retirement! According to LXME’s Report, only 2% of women are investing for their retirement. So start early, start small and start investing in assets that leverage the power of compounding like Equity Mutual Funds!
Prioritise Health & Life Insurance: Always ensure you and your family are protected with adequate insurance. Uncertainties don’t knock at the door, they are sudden and rather disruptive- emotionally and financially! So cover yourself and your loved ones with health and life insurance to ensure the financial stability of your family.
Take small steps, and chart out a financial plan with all your money goals and when you want to achieve them.
Remember, To quote Chinese philosopher Lao Tzu, “A journey of a thousand miles begins with a single step“.
With this, wishing you and your family a very happy and healthy Diwali and hoping you will take charge of your financial health for a prosperous New Year by being the true Lakshmi.