Financial Planning for Women

Updated on 14 May, 2025

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Women have achieved equal standing with men across multiple fields and professions. Female representation can be seen in every domain. Investing is one area where women are just starting to establish themselves.

Key factors driving this change include the near doubling of women’s participation in the workforce and a steady increase in female literacy rates. As per a survey, women’s share in the labour force jumped from 23.3% in 2017-18 to 41.7% in 2023-24. Literacy rates among Indian women have also shown remarkable improvement over time, with the rate of increase surpassing that of men.

Today, let it be working women, entrepreneurs, homemakers or even students for that matter; they can all invest.

But is financial planning for women important? Read on to understand.

Why is Financial Planning for Women Important?

Financial independence is critical for true freedom. A woman has to face many challenges like career breaks for caregiving, gender pay gap and longer life expectancy, which is why financial planning is needed.

A solid financial plan can ensure you have independence, security and the ability to achieve personal and family goals. It allows you to handle unexpected expenses, invest wisely, and build a comfortable future without relying on others.

An Investment Guide for Women

How to invest money as a woman? Here are a few ideas for all the women out there to make their investing journey easier.

1. Start with Emergency Fund

Have an emergency fund. It should ideally contain 3-6 months expenses and the last emergency expense. The first goal of financial planning should be to cover yourself in case of emergencies. Each individual should have an emergency fund. Just because your husband or dad has an emergency fund doesn’t mean you shouldn’t have it. Prepare yourself for a contingency. On the day of the crisis, your fund will support your family too.

2. Get Insured

Insurance falls second in the list of financial goals for everyone. It offers assistance in case of emergencies.

Taking life insurance, medical insurance and auto insurance is a must. Remember that your life insurance should be 10 times of your annual income. Your health insurance should be somewhere around ₹5-25 lakhs or even higher depending on your family history. Having sufficient coverage is very important for all insurance policies. Insufficient cover poses a substantial financial threat in times of emergencies.

3. Budget your Incomes and Expenses

Budgeting your expenses and income will help you with understanding where you are spending your money. While having a budget for your house is important, having a budget for yourself is equally important. As a working woman or a homemaker, you should have your own budget.

Try reducing unnecessary expenses every month.

4. Have Financial Goals in Life and Convert them into Numbers

You may want to build a house or help your partners in building one. Some might want to save up for their kid’s education and marriage or just save up for their retirement. All these are goals. Convert them into numbers in terms of money needed and the time horizon. Segregate them into short, medium and long duration goals.

5. Work towards the Goals

Start saving up for the goals and invest to achieve the same. Saving money in a jar in the kitchen or at a bank is as good as cooking the food but not serving it in a plate to eat. The hunger won’t satisfy if you keep staring at the cooked food. The money won’t grow on its own if it is left idle.

Invest in various financial products available in the market. FDs, mutual funds, shares (via SEBI-registered brokers), bonds, REITs, gold, NPS, and post office deposits are some available options. Riskier products like commodities or forex require more experience and are regulated—invest with care and always seek advice from a SEBI-registered professional for securities investments. Invest in your goals and if you are already investing then step-up your investments by 5%-10% every year. This will help you reach your goal faster.

6. Keep a Tab on Loans

Spend with the money you have and don’t borrow until unless it is for creating an asset like the home you will live in. Where feasible, discuss with your family the loans they have and try to pay them off early to escape the interest burden.

7. Invest Small to Begin With

One need not wait to accumulate a lump sum amount to invest. Mutual funds allow one to invest in small amounts through SIP and for the long term. SIP and long-term investing is a deadly combination to build wealth. One can invest with just Rs 500 a month. Students and homemakers will find it easy to invest in small amounts through SIP as there is no or very little income.

Remember, being independent is the best way of living. Try to share family expenses and loan burdens and create a living for yourself without depending on the others. There is nothing more attractive than a strong independent woman.

Happy financial planning!

FAQs

How to invest as a woman?

Set financial goals, budget wisely, build an emergency fund, invest and diversify investments. Prioritise insurance, eliminate debt, and stay financially educated.

Which investment plan is best for women?

Mutual funds, equity, fixed deposits, gold (preferably through mutual funds and ETFs), and government securities all can help women grow and build wealth.

How to invest in yourself as a woman?

Invest in yourself by prioritising your health, learning new skills, setting boundaries, building confidence, and surrounding yourself with people who uplift you.

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