The question every woman needs to ask herself is whether she is really financially independent.
What does being financially independent or freedom mean?
Being financially independent means not having to say yes to things that are against your morals and ethics. It gives you the power to say “No” to anything against your beliefs.
Women in India have wide ranging priorities. They work hard, save for family and want to enjoy a fair degree of financial freedom.
But what are you doing to be financially free or independent?
3 finance things which you need to do
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No Compromise Fund
Women are often asked or expected to comprise on their beliefs, be it marriage, dowry, friends and family, who may pressurise to make choices which you do not believe in.
Having financial independence gives you the power to say “No” for things you feel are against your individual belief and ethics.
What you need to do:
Set aside a minimum 20% of your take home pay towards a ‘No Compromise Fund’ that lets you live the way you want to. The amount should be equal to 6 months of salary. Keep this in debt fund, which can be withdrawn anytime.
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Family Fund:
Financial independence means ability to contribute to your family’s needs when required like saving for a child’s education, medical expenses of parents or helping a partner who has lost his job, etc. It helps you to meet your family’s needs.
What you need to do:
Save a minimum of 10-15% of your monthly income for ‘Family Fund’
If you already save for your family, then it would be a good move to invest in debt funds for higher returns as well as risk reduction. A family fund allows you to be there for your loved ones in more ways than one because that’s what family is for.
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Dream Fund:
A dream fund or indulgence fund is saving for your dream, no matter what it is. It can be a dream Hermes bag or a trip to Bora Bora. After taking care of your family and other needs it’s time to start saving up to fulfill for your personal dreams.
What you need to do:
Save minimum of 5% of your salary for fulfilling your dreams. Annual bonus or any windfall can be used for it.
Depending on your dream you can opt for equity or debt funds.
Please take your decision today to save towards mutual funds, and the rest will take care of itself.
If you want to learn about starting SIP mutual fund, click here.