4 Steps That Will Make You Financially Independent

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4 Steps That Will Make You Financially Independent

Whether it’s corporate, entertainment, sports, or entrepreneurship, women have proven their capabilities and leadership skills. Some have reached the pinnacle of success in their respective fields, whereas others are still struggling to fulfill their needs and support their families.

However, studies say that when it comes to managing finances, women leave it on the male member of the family. This male member can be either their spouse or father. Only 33% of the women are empowered to make their financial decisions. Therefore, women have less control over spending decisions and are thus unable to fulfill their needs and dreams.

So, young women earners must educate themselves about financial planning and embark on achieving financial independence.


Get into the Habit of Saving

Once you’ve started your first job, get yourself a habit of saving. Start with the grocery bills and other utility bills to figure out how to minimize your unwanted expenses. Try to figure out the possible ways to reduce your monthly electricity bill. Claim cashback and discounts wherever possible. Once you get into the habit of saving, you’ll find it easy to save more every month. But not overboard with misery.

Pro-tip: Instead of calculating Income - Expenses = Savings, go with Income - Savings = Expenses.

 

Define Your Goals

Once you start earning, it is essential to define your financial goals and start saving accordingly. You can achieve your short-term goals (such as getting a premium laptop or any other high-end electronic gadget) within 2-4 years.
And your long-term financial goals can be achieved (such as downpayment for a house or funds to start a business) in 6-8 years.

Pro-tip: Create SIPs in suitable mutual funds for each goal.
(Contact your bank for SIP investment-related help and guidance)

 

Secure Yourself

As soon as you start working, purchase a health insurance policy for yourself, even if your employer provides you with this benefit. Having independent health insurance always saves you from any sort of medical emergency. It provides you with a better coverage amount that your employer may not help you with.

Pro-tip: Purchase a health insurance policy keeping in mind to get the maximum health and hospital coverage. Preferably with cashless opportunities.

 

Manage Savings Account Separately

It is always good to manage your savings with a single-handed account. Do not prefer to go with joint accounts as your savings can be accessed by someone else too. While opening such an account, understand the minimum balance amount correctly to be maintained, how much interest you would get annually, the benefits of getting a women’s savings account, etc.

Pro-tip: Opt-in for Internet banking services along with Mobile banking. It eases out the banking operations.

 

The Takeaway

Financial freedom is the gateway for women who wish to fulfill their needs and dreams. It also helps lead a life with dignity and self-respect. If you’re one of the million women who are seeking better financial independence, start planning your finances today.

#financialadvice
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