She Makes The Money Groove

Taking that first step towards financial planning makes half of your job done!

- Himali Patel

When it comes to savings and being financially independent, Indian women have earned their place. A RBI report released this January highlighted women’s share in total credit and aggregate deposits increased to 20.4 per cent and 32.8 per cent, respectively in March 2018 from 19.3 per cent and 32.0 per cent a year ago.

Though such statistics draw a pretty picture, in reality, most Indian women are still not adept with money matters. Only 47 per cent of women surveyed are confident about financial planning, concluded a study by Mussett Wealth Management, an independent financial planning firm.

Whether you are an entrepreneur, a salaried individual or a homemaker – the common thread that binds us all is the aspirations to achieve something in the future. And, proper financial planning is a stepping stone to achieve those dreams. Saba Adil, Chief People and Operating Officer, Aegon Life Insurance, said, “Financial planning is critical and not only from the perspective of earning interests or gaining on stocks or investments. It includes how you plan the well-being of your loved ones, your future, retirement, old age and health care.”

In order to get started, one needs to classify her goals in short, medium and long-term basis. For instance, purchasing gold or planning a dream vacation fall under short-term goal, buying a house or a car can be figured into medium-term goals. Planning for your children’s higher education, providing for dependent parents or saving for your retirement needs fall in the list of long-term goals. For planning for such needs, one needs to assess her risk appetite since different products have different risk-return patterns.