Life is often said to be unfair to the fairer sex. At least that is what the everyday headlines in the news media tend to communicate and amplify. However, this narrative will change if the new age women follow some financial discipline and show their acumen in money management since many of their sorry stories have a one linMillennial Women: Tips To Becoming Smart Investors
er script—their financial dependence.
Financial independence will help women live their dream for sure. For this to play out, many money habits of the millennial women need a change with the pivot shifting from savings to investments. The following suggestions will go a long way for them to land there and live the life they want.
Savings Vs Investments
Women are often considered as astute savers. What they often save is the residual income after meeting expenditure. It is usually in the form of cash in hand or balances at the bank. This money while earning a meagre interest is highly liquid since one can withdraw the principal with interest at any time without hassles. Such liquidity, however, may not help them to achieve their goals. Therefore, women should move a part of their savings to investments that can meet their long term and short-term financial goals. The market is awash with such products if one cares to shop carefully.
Asset Allocation Matters
Diversification is the key for having a successful investment portfolio. To meet varied requirements the portfolio should consist of various asset classes such as equity, bonds, gold and other cash and cash equivalents which can give long term growth, income and liquidity. Here planning properly and prudently is of paramount importance.
Importance Of Making Informed Decisions
When it comes to making investment decisions, narrowing down all the options and figuring out where to turn can be puzzling considering the plethora of products available in the market. However, taking investment decisions need not be that complicated provided one does a little home work before taking the call. Here, women should take a certain personal interest to know where and how to invest. Making use of all authentic avenues, especially the digital media for gaining awareness about various options available, market factors and performance indicators before starting any investment will be of great use.
Go The Digital Way
Women are not second to men when it comes to going digital. In a world of growing digital and automated financial services, women should use this advantage to be conversant with cashless and paperless financial transactions, thereby enjoying the benefits of digital modes of investment. After all, going digital is the most fashionable thing these days.
Move From Jewellery To Gold Investments
Women love gold ornaments. But it is always prudent to keep the jewellery inventory to the minimum required level and park more money in income earning gold instruments. Instrument like Gold Exchange Traded Funds, Gold Saving Mutual Funds or Sovereign Gold Bonds will give a steady income while keeping the market value of the underlying asset – gold – moving in tandem with market trends.
The benefits of such investment are manifold including competitive and uniform prices, assurance about purity, convenience of buying in fractional quantities, greater liquidity compared to physical gold and returns are close to that of domestic price of gold. Women can have all these positives without worrying about the physical custody of gold. Have the cake and eat it too!
Go To Business With Own Expertise
Women are breaking the glass ceilings everywhere. They are successful in many areas which were once considered as male bastions, from corporate board rooms to space shuttles. With unique skills and creativity nothing can stop them from earning their rightful place in the world of business. However, it is better to get started in the business world by banking on one’s own experience and expertise. This will give them a better grip on the tracks ahead.
The author is the Investment Analyst at Geogit Financial Services