http://www.dailypioneer.com/business - Indian women are proficient at handling day to day finances but financial planning has always stumped them. Are you also one of the countless Indian women baffled by money?
Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.
How to Overcome Them
Money has delighted us, but also confounded us for quite a while now. For most part of
our life, we are either thinking, earning or spending it. But why have men been
traditionally better at handling finances, is a question worth looking into!
Indian women are proficient at handling day to day finances but financial planning has
always stumped them. Are you also one of the countless Indian women baffled by
For more info visit: http://www.dailypioneer.com/
Read on to discover some of the major financial challenges Indian women face and
how to overcome them:
1. Gender pay gap: Article 39 of the Indian Constitution states that men and women are
entitled for equal pay against equal work. But that is hardly practiced! According to a
2017 article of India Responsible Business Forum (IRBF), women are paid 27% less as
compared to men.
Solution: Indian women are known to be less likely to ask for a raise from their boss as
compared to men, who are comfortable discussing money matters. Research the salary
benchmark for your role as well as the industry standards. Create a list of your
contribution to the business, your achievements and converse with your manager
regarding the same. Utilise salary indexes and calculators like Glassdoor and Pay Scale
to derive your actual worth.
2. Longer periods of absence from work: Indian women often adopt the role of the
primary care giver. Even though the concept of house husband is becoming popular
overseas, India is yet to notice such change. Thus, women encounter longer career
breaks due to pregnancy, ailing parents and other dependents. A direct impact of this is
visible in the reduced advancement opportunities and super-annuity benefits offered at
retirement. These factors make financial planning all the more important for women.
Solution: Approach this problem with a multi-pronged approach. There are three main
areas of concern - insurance, investment and retirement. First avail insurance to cover
yourself and your family against any financial discrepancies. Once you have
safeguarded your income, it is now time to use your savings. Invest in financial
instruments to generate new sources of income. Lastly focus on creating a retirement
corpus to ensure your family’s well-being post retirement.
3. Being emotionally attached to money: Women are always wary about running out of
money. They associate financial loss with failure and shame. This is one of the main
reasons women, unlike men, have lower risk appetite.
Solution: Understand what money means in your life! Money is the tool that helps you
acquire and experience things to fulfil your needs. Separate the end result from the tool
to achieve it and make financial decisions from that unemotional place. Start utilizing
your savings to create a secondary source of income. If you are a first-time investor
with a low risk appetite, consider investing in FD (Fixed Deposits) by Bajaj Finance.
4. Longer Life expectancy: According to a study published by The Lancet Journal in
2017, Indian women have a life expectancy of 70.3 years, as compared to 66.9 years in
the case of Indian men. Increased life expectancy coupled with lower payouts at
retirement increase the retirement-savings gap between men and women.
Solution: Start planning for your retirement early. Even with lower payouts, you must
leave room to create an optimum retirement corpus. Apt and early retirement planning
enables you to be independent, while also being better prepared to meet unexpected
expenses. Several financial instruments like Senior Citizens' Saving Scheme, Post
Office Monthly Income Scheme, Fixed deposits, Mutual funds, etc. can help you plan
your retirement better.
5. Unchecked spending: You might be overlooking the importance of tracking your
expenditure. Even if analysing your cash flow does not appeal to you, it is an important
step to create wealth and fulfil your goals.
Solution: The most basic way to track expenses is by creating a budget. You should be
aware of your spending habits and track where your money is going. Prioritize your
spending to focus on your needs. Decide how much money you can put away on a
monthly basis, before you formulate your spending plan. Invest these savings monthly
or as a lump sum amount in recurring accounts or Fixed Deposit for Women to create
an indirect income source.
6. Leaving financial planning to your male counterpart: Most Indian women feel
financial planning to be a man’s job and depend on their male counterpart to plan their
finances. This is mainly due to the patriarchal setup of the Indian society, where men
are viewed as the main breadwinner and women adopt a sedentary role in financial
Solution: Working women have started actively participating in financial decisions of
the family, but even homemakers should not feel financially dis-empowered. They have
the additional time to start proactively investing and also develop a knowledge base in
financial planning. This enables them to be independent and adopt a more central role
in financial decision making.