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For Women: How to Manage your Finances at each Stage of Life

Team Jar
October 27, 2022
For Women: How to Manage your Finances at each Stage of Life

Single, married, working or not, no woman should refrain from becoming financially literate and investing her money. Check out these smart investment tips which might help you save your future.

Indian women are breaking every stereotype and constantly rejuvenating their zest at every platform. Be it the corporate world, startups, sports, entertainment, media or any other area, Indian women have an active presence everywhere. 

With the advent of the fight against patriarchy, women have been on the move and have played their part well in society’s upliftment through their success. Finally, they are not just limited to the four walls, but are stepping out and taking their deserved stand. Women today, earn for themselves. The ‘dependent sex’ parody is over. 

However, the picture isn’t as clear as it seems to be. While there is a women’s presence everywhere, there is still one area where they are lagging behind - The area of finances.

Even though women are now working and earning, they aren’t able to manage their finances efficiently. There are several reasons pertaining to this lag and why men are more active and efficient in areas like finance.

Knowledge of finances becomes even more necessary for a woman because they take more and often longer career breaks. 

To prepare financially, women need to be more confident in the arena of finance and invest. While it is no hidden secret that every person has different priorities and investment habits take time to build on, it is nonetheless important to polish financial skills to retire with a strong financial back up.

Taking the risk in 20s can secure a woman’s 40s and the time is to start now. The sooner, the better. 

Here is a wide elaboration on how women, at every stage of life, can take on investment and manage their finances effectively: 

For the young and free 

We assume that you are in your 20s and most probably single. Now, being single in your 20s is different from being single in your 40s due to time constraints. This might be the time when you have just started your career.

This age is perfect to take on risks by investing. You must learn to make your money work for this at this stage. Take on risk, start investing, save more and set long term major goals. 

Since savings are much better if started earlier, this stage is perfect for you to pitch your saving plan and work on it. If you start now, you can later refrain from borrowing money in the future for your basic needs or big goals.

You must start investing in funds like mutual funds or create an FD for your future. One of the most crucial things that you can do at this stage is to take a suitable health insurance policy and life insurance policy. 

Open up a savings account and start saving and investing consistently. Try to earn better returns by periodically shifting your money from savings accounts to FDs or whatsoever.

This is beneficial for getting higher returns in case of emergencies. Another thing can be a ‘targeted savings plan’, that is, you can set short term goals like buying a house and save twice of what you’ll actually need to accomplish it. As you grow, take on a serious retirement or pension plan and work on it. 

For the working (married) woman

The responsibilities of a working married woman are endless. From managing household and children to managing office work, you are on the move all round the clock.

With constant stress and career breaks, especially at this stage, it is necessary that you actively take charge of your finances. 

While it might be the case that the investment incharge is the male, it is equally essential for you to be aware of your finances. Since yours would be a double income home, smart investing can serve profoundly.

It is quite advisable to purchase a suitable term insurance policy at this stage. Investment in mutual funds, FDs, etc., must also be taken into consideration as now these financial plans would affect the family altogether.

Planning for children’s education, marriages, emergencies, retirements, etc., are all to be taken care of. 

One interesting thing that you can do is to invest in Gold funds as they generally have a very high rate of return and are pretty reliable when it comes to investing. Keep a track of your investments and plan for a secured retirement.

Keep an eagle eye on different pension plans and pick the best that suits your risk aversion profile. 

It is important to invest smartly but also to invest carefully. Therefore, a frequent check of your investment portfolio is necessary. 

For the homemaker 

The underlying assumption for homemaker women is that they do not have an income of their own. However, it is pretty much evident that you are the one who handles the monthly budget of your household and knows how to stretch your money till the last penny.

While it might not be possible to take on big investments on your own, you can still stretch your money and make money out of your money! 

You can save and invest in gold funds, post office savings deposits, hybrid bank accounts etc.

One of the trendy and quite famous ways of investment by household women is self help groups, you can invest in them in case you live in rural areas since SHGs are most prevalent there. Start saving in Digital Gold from just ₹10 through the Jar app.

For the single parent or widow or divorcee

If you are a single parent or a widow or a divorcee, the responsibility of your children solely lies upon you.

From managing the whole household alongside the emotional stress to planning for your children’s future alongside your own retirement plans. At this stage, it is inevitable for you to take on firm steps towards investment. 

While you can act more risk averse at this stage, it is equally important to think of alternate sources of income and then invest & save carefully. If you are a divorcee, you might be receiving a regular monthly allowance from your spouse.

The best way to step ahead in financial independence is to start keeping aside some money from your monthly earnings for your future plans. 

In case you are a widow, you must check out government support policies. You can also take financial help from your husband’s life insurance policy and firstly get rid of loans and debts (in case you have them) and then take on a suitable savings plan.

Thereafter, take on a family healthy insurance policy, education planning and your own retirement plan. You should also invest in uncomplicated mutual funds, etc.

Women need to save more and start early than men. It is crucial to focus on a personal financial plan before that for the family. With the diversification of age, your investment plan must change and the primary focus should be on a secure retirement plan. 

Jar offers investment plans for all women. With its easy to use features and attractive investment schemes, any woman can grow her finances.

The first option is to round off your daily savings. Here, if you invest Rs. 37 in a day, Jar will automatically round off your investment to Rs. 40. Another way is to set up a daily amount to be deducted from your account and saved in digital Gold - automatically.

Another feature is daily spin options where you can even double the amount of your investment. Therefore, with online tools like this, every woman can expand her financial portfolio.