Today, women are equipped with opportunities more than ever to achieve financial freedom. Financial freedom or independence is the ability to sustain oneself financially for their needs and wants without any assistance. To be financially independent is a dire goal for everyone, but significantly more important for women who have been marginalized by the job market for centuries. It is no longer an option but a basic requirement. Having financial freedom enables women to be in a better position to take care of their loved ones and follow their aspirations at the same time. In the earlier days, women were deprived of the necessary financial awareness and skills which could allow them to provide for themselves and live independently.
However, with societal norms changing significantly, women are able to equip themselves with the necessary knowledge pertaining to finances and financial tools. Thanks to the ongoing and perpetual fight for equal rights, women are able to break the glass ceiling and attain positions of power in the workforce. Today’s women are given the opportunities to succeed in every realm.
However, when it comes to personal financial planning or investments, women still tend to leave the crucial decisions behind to the men. Many women from low socio-economic backgrounds still lack the knowledge to become financially independent. For women to truly break the next big glass ceiling and become empowered, attaining financial freedom plays a key role in making it happen.
Here are a few ways women can achieve financial freedom in India!
Ways to Achieve Financial Freedom for Women
1. Educate Yourself as Much as You Can
Knowledge is power. The first and foremost step to attaining financial freedom is to equip yourself with financial literacy that can help you make better financial decisions. When compared to men, women receive a considerably less amount of financial education. Many Indian women undergo several cultural, economic, psychological and physical restrictions that hinder them from becoming financially literate, irrespective of the importance that’s given to them. Thus, taking the time to educate yourself and becoming financially literate will not only help you to make better financial decisions but will also allow you to be more confident. It will alleviate your anxiety whenever you are encountered with crucial financial assessments. Financial knowledge is also the best defense against fraudsters who prey on unlettered investors to turn a quick buck.
Read books and articles, acquire free educational tools through your banking institutions, leverage the internet and research about financial planning, etc. One of the leading direct selling organizations, such as QNET, offers many courses and training pertaining to financial education. QNET works strongly to provide women with a chance to learn everything about finances in order for them to become self-sufficient.
2. Evaluate Your Spending Habits and Devise a Budget Plan
Many of us are guilty of splurging on things we love without properly analyzing if all the expenses are within our means. Our hobbies, groceries, travel, transportation, and even our late-night snacks can easily take a toll on our bank if left unchecked. Like many say, the easiest way of becoming bankrupt is by not paying attention to your expenses. In order to ensure a healthy financial future and create an adequate budget, you should take the first crucial step of figuring out how much money you have and where it is going.
When you track your spending, it will allow you to understand how much money is being spent every week or month. When you’re aware of where your money is going, it will help you to become more mindful of your expenses. Once you track your spending habit, create a budget plan which can enable you to manage your expenses effectively. That is your starting point for a sound financial strategy to achieve financial freedom.
Devise a plan by calculating how much you’ll need for bills, groceries, transportation, rent and other expenses by working backwards. Keep some aside for miscellaneous and other items. After you have created a monthly cost sheet, depending on your needs, set some aside as an emergency fund, travel fund, savings, and so on. In being smart with your expenses, you will avoid spending your money like water and living from hand to mouth. Instead, you can create a plan for a contented tomorrow.
3. Build an Emergency Savings Account
We’ve all met with unexpected financial emergencies at some point in our lives. Whether it’s an unexpected medical bill, a broken appliance, the loss of a loved one or a financial loss, no one is entirely liberated from the possibilities of a potential emergency. In the face of such unforeseen predicaments, it is necessary to have savings that can help you remain stable. Without savings, a sudden financial blow – big or small – can potentially put you into debt and have a lasting impact.
Thus, having an emergency savings account can allow you to stay on top of things, even when crises occur. It can help tackle the unexpected financial curve balls that life can throw at you. It works as a safety net, protecting you from an uncalled situation. Having a savings fund can also help you to avoid relying on other forms of credit or loans, which can turn into debt. When you have emergency savings, it can alleviate the stress, anxiety and paranoia you could have for future emergencies. Additionally, it will safeguard you from monetary loss, thereby helping you retain your financial independence.
4. Live Below Your Means
“There is no dignity quite so impressive, and no one independence quite so important, as living within your means.” – Calvin Coolidge.
Perhaps the most effective way to safeguard a better financial future is to take measures at its fundamental level – which is to live within your means. Many wealthy individuals develop the habit of living below their means before rising to affluence. Rather than squandering your hard-earned money on frivolous purchases, frugal living can bring you more satisfaction and fulfilment in the long run by eliminating that which is unneeded. A thrifty attitude can imply that you cherish what you have and what you’ve done to obtain it.
When you live within your means, you will discover what you can’t live without and what you never really cared about to begin with. It helps you to eschew instant gratification for the sake of your long-term financial wellness, which guarantees your financial independence. Thus, contrary to popular belief, being frugal and practising frugality in your life can be a rewarding virtue. It will enable you to achieve greater financial freedom.
Thus, these conclude the top 4 ways for women to achieve financial freedom irrespective of their socioeconomic or educational background. When you implement these steps in your journey, you will be able to become financially independent in no time!
