Investment Challenges Faced By Women

Today, women are at the onset of achieving financial independence. Being financially secure enhances your overall lifestyle. It imparts a sense of achievement. Investing can be a tough game if not taken seriously. Investment challenges faced by women increase, because of different factors. A few of them are mentioned below.

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Investment Challenges Faced by Women

• Achieving financial literacy: Financial literacy is very important. Besides earning and saving, you must be aware of how to allocate money in the best possible manner to achieve maximum returns. This can be accomplished by having the required financial literacy.

You must be well informed on investment plans, insurance schemes, ROI (return on investment) for different products. When it comes to women, they lack financial education. They are blindly involved in the process of earning and saving. Proper financial education can enhance your earnings and savings.

Reading books, magazines, watching the news, reading articles on finance increases financial knowledge. There are a number of online articles and applications that help you achieve financial literacy.

See Also: Basics of Financial Planning

Most women try to achieve financial independence without basic financial knowledge which leads to unsuccessful results.

• Financial discipline: You must follow financial discipline in life. This means you must track earnings, savings, and spendings as well. Most women take financial discipline lightly. In some instances, they might save more but would forget to keep a track of expenses. To lead a financially disciplined life, follow these tips:
• Ask yourself a few questions on your financial status. Example: How much do I earn? How much do I owe? What is my next investment plan? What are my savings? Answering these questions keeps you on the right path to overcome investment challenges.
• Set a budget: Setting a budget for your expenses always helps. While preparing a budget, make sure to come up with realistic figures that you can follow.
• Automate savings: Automating savings helps save time and eases the process of saving. Second thoughts can stop you from saving. If savings are automatic, there’s lots of money in the bank.
• Emotions: Human beings are creatures of emotion. When it comes to women, the researchers state that women are more emotionally expressive, compared to men. Being emotional can be advantageous as well as damaging, depending on the kind of emotions (positive/negative) and how they are expressed.

It is important to structure your emotions in such a way, that it has a positive impact on your investment decisions. Fear, confidence, greed, hope can all impact investment decisions. Structuring your emotions in simple words means realizing your positive and negative emotions and separating them from each other. Along with proper investment planning, emotional intelligence also plays a major role in an investor’s life.

See Also: Types Of Investment Plans

Risk tolerance: For wealth accumulation, you must have adequate risk tolerance. Risk tolerance is the ability to bear the risk. Women face uncertainty in income along with changing life events. Life events like childbirth, childcare, relocation can lead to uncertain income from year to year.

So, during these times, women prefer to save money in the bank rather than invest. This will help them cover emergency expenses. The fear of running out of money during such circumstances stops them from investing. Women on average live more than men. This means they must plan their retirement. They could opt for a financial advisor to manage finances if they can’t do the job themselves.

Financial role as a partner:  It is necessary for women to realize their importance in managing finances. Often women leave financial responsibility to men. This is an indirect impact of the patriarchal Indian society. They tend to isolate themselves from financial planning and investment decisions until a situation demands it. It is healthy for women to be a part of financial management. At times, women make better investment decisions than men.

• Balancing family life: Women take up the primary role of caretakers in the family. Therefore, women investors must maintain a balance between their professional and personal lives. Finding this balance and following it up can be challenging. A good financial plan can be effective in such a scenario.

Investment is a means to earn returns. It secures your life from financial difficulties during an emergency. Governments, as well as private enterprises, encourage women investors in different forms. There are customized investment plans for women. Utilizing these opportunities results in successful investing.

See Also: Best Investment Plans for Millennials in 2020

Educate yourself. Overcome challenges. Start investing. Be financially independent. Let this be your motto for the year 2020.

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