Empowering Women to Overcome Financial Stereotypes and Gain Financial Independence

Posted By: Blog

In today's world, women are breaking barriers and working alongside men in various spheres. Whether it's a rocket launch site or a construction site, you'll find men and women working hand in hand to propel advancement. While women are earning the highest incomes ever witnessed in history,  there remains a question mark regarding their financial management skills.

"The Divide," an impactful video created by Paytm, unites a diverse group of people to answer a set of questions, starting with general questions, encouraging participants to step forward for "yes" answers and backward for "no" answers. As the questions dig deeper into financial matters, like managing household payments, understanding salary breakdowns and current gold rates, and buying insurance policies without help, the contrast between men and women becomes strikingly clear.

Men move forward while women move backward, showing the difference in financial literacy. This shows that women are often excluded from learning about and prioritizing financial matters. It emphasizes empowering women with the essential financial knowledge and skills they need.

Take a look at Paytm’s “The Divide” video by clicking this link for a brief understanding

The video highlights the significant progress women have made in their careers, yet many still rely on their spouses or family members for financial management. Today, we'll delve into why women need to take control of their finances. Women have distinct needs that set them apart from men. They face unique challenges in life, making their situation quite different from that of men. It's crucial to understand their perspective and why it's important for women to effectively manage their finances.

Check out the video link for a more in-depth understanding

Why Should Women Take Charge Of Their Money? - The Empowerment of Women's Financial Independence

1. Long Life Expectancy

It's a well-known fact that women tend to outlive men, and this trend is here to stay. It's important to acknowledge this reality and understand that the sooner we start taking control of our finances, the brighter our future will be. With a longer lifespan ahead, it becomes crucial to ensure that our money lasts us through the years. So, embracing the longevity of life becomes a vital aspect of our financial management.

2. Economic Empowerment

Women are earning equal to men in many corporate hierarchies. They need to handle their money wisely to ensure it benefits them, whether it's for their desired purchases or essential trips. This financial stability will prove to be very useful for them.

3. Career Interruptions

Women and men tend to have different career paths. Men usually have a continuous work history, while women often take breaks to care for family members or start a family. To navigate these interruptions, women must have a solid financial strategy in place. This ensures that they have passive income from investments during periods of non-earning. Planning ahead is key for women to thrive in their careers.

4. Gender Gap

Moving forward, regardless of our personal preferences, it's important to acknowledge the existing gender pay gap in the workforce. Women may face challenges in this area, but their tendency to be more frugal and better at saving money puts them in a favorable position to bridge this gap through smart saving and investing. By adopting a strategic approach to your investments, you can effectively overcome any major pay disparity you may face.

5. At Some Point In Their Lives, Women Have To Take Care Of Money

Women often outlast their partners, so they must take charge of their finances at some point. The sooner they start, the more beneficial it will be, and the knowledge gained will be invaluable.

6. Women’s Financial Priorities Are Different

Women have unique financial planning priorities that revolve around their family's welfare. Rather than just thinking about themselves, they tend to prioritize investing in their child's future or addressing their family's immediate needs. Viewing their financial decisions through their lens is essential, rather than making assumptions based on a generic viewpoint. It's essential for women who earn income to plan and manage their finances for long-term financial stability proactively.

Check out the video link for a more in-depth understanding 

Aspects To Consider For Women’s Investment Planning

But what are the different aspects that one needs to keep in mind while helping women manage their investments? Let's explore now.

1. Risk Tolerance

When it comes to risk, women often lean towards a more conservative strategy. Although there are always exceptions, they tend to opt for investments that are less risky and more balanced. This risk temperament should be taken into account when planning investments.

2. Diversification

When it comes to diversifying their investments, women tend to err on the side of caution. They are often hesitant to venture into high-risk investments like Bitcoin or real estate, which involve a lot of external interactions. Instead, they prefer to keep their investments easily accessible, avoiding the need for extensive effort before accessing their money.

3. Liquidity

Additionally, they are considering their liquidity requirements, as I mentioned earlier when they are wrapping up work for a temporary period or taking a break to care for an elderly family member.

Check out the video link for a more in-depth understanding 

Women need to have access to liquid assets in case they have financial obligations and don't want to rely on their partners for money. This is why women may consider different investment options tailored to their needs compared to men. The reasons for women to explore unique investment opportunities are numerous.

At Finsherpa, we understand the importance of seizing opportunities. We take immense joy in assisting women in planning and investing their hard-earned savings for a secure future. If you need any guidance in managing your investments, don't hesitate to reach out to us. We'll be more than happy to help.

For the complete video experience, click on this link