Reasons Women Need To Start Saving
More and more women are working these days and more are entering the stock market. It is essential that women become financially independent to secure their future.
Here is a comprehensive list of reasons why women should save and how women can save effortlessly.
As we go forward with the world and push for equal opportunities, we can all agree that we are still a long way to go before achieving equality.
When we look at history, we can see how women had to fight for many things – to vote, to work, and to be paid the same as men.
Though there is a long way for women to go, we can be happy knowing how women are achieving more milestones every year and breaking stereotypes.
As per Women & Money Power 2022 survey released by LXME, a financial platform for women, only 7% of women in India invest independently via self-learning.
The report also showed that 33% of women in India do not invest their money at all and the number is as high as 40% in the 21-25 years age group. Overall, 55% of women in the country either don’t invest or are unaware of their investments.
The data shows how gender disparity exists on the investment front and there are plenty of reasons why this happens. Experts say that the reason why a lot of women don’t invest can be a lack of financial awareness.
There is also the fear of investing and thinking that investing is for the rich. However, it is important that women save and invest. Here are a couple of reasons why is it crucial for women to start their savings journey.
Although a difficult fact, it is the truth – Women are paid less than men. The gender wage gap has always existed and the pandemic has worsened the situation.
Women, on average, earn 21% of the income of men. The Global Gender Gap Report 2021 said that the gender pay gap in India is among the widest in the world.
Since women are paid less than men, they have less disposable income to save for their goals. This makes it important for women to save more than men in order to achieve their goals seamlessly.
2. Longer Life Expectancy
A study done by an international team of scientists found that women live longer than men across the world, with women’s life span being almost 8% on average longer than men’s life span.
This means that women will probably live for more years after their retirement age. Hence, they need to start saving as early as possible to build a sizable retirement fund.
3. Fewer Years To Work
Compared to men, women often have less consistent income streams during their working years. This is because women take time off work to raise children or care for elderly parents.
When women take time off work, it means there is less money going to their savings or retirement fund. This is why when women have the opportunity to save money, they should save more and they should do it consistently so that they can build a sizable corpus.
4. Part-Time Roles
As we mentioned, women take time off work to take care of their duties. So, they end up choosing part-time opportunities instead of full-time jobs.
However, these opportunities do not pay as much and they don’t have a proper retirement savings plan. So, it is important for women to save so that they can be financially stable and be ready to face any situation with confidence.
How Can Women Start Saving?
Women are said to be more adept at saving, but learning more about how you can save better hasn’t hurt anyone. Here is a detailed guide that will help you become a pro at saving money.
Make A Financial Plan
Without a plan, nothing works in this universe. It is important that you make a detailed plan on why you want to save money and how much you are planning to save.
You should also include how long you are planning to save your money on a particular instrument. For example, your plan can look like this: I wish to buy a new phone in another 8 months, so I should have saved ₹60,000 by the end of the eighth month.
This means you have to save ₹7,500 every month.
When you have a clear number in front of you, it will push you to save money out of your monthly salary. A proper plan will prevent you from overspending and straying away from your goals.
Learn About Personal Finance
Trust us, ignorance is definitely not bliss. If you want to become good at saving money and managing your finances, you need to have basic knowledge about personal finance.
You need to understand the meaning of some words such as investments, mutual funds, credit scores, and so on. Worried about where you should start your learning? Head over to Koshex and read our blogs.
We have written extensively about various personal finance topics, which would help you understand more about finance.
The reason many experts ask everyone to start saving early is that we have fewer responsibilities when we are young.
When you are straight out of college, all you need to think about is your education loan and everyday expenses.
However, when you are in your 30s, you need to include childcare, home loans, and more in your monthly expenses. Hence, it is easier for women to save more early in their careers.
Prepare For Risks
If there is anything that the pandemic has taught us, it is to be prepared for all sorts of emergencies.
Anything can happen at any time in our lives, so it is crucial that women have an emergency fund. These emergencies could be anything from a medical expense or an unexpected home repair.
Start building an emergency fund as soon as you can and don’t take any money from it unless it’s an actual emergency.
In The End…
More and more women are entering the workforce every year and more women are leading big companies. Women are breaking stereotypes and gender roles.
However, in order for women to save more and lead a fulfilling financial life, there needs to be more financial awareness among women.
The government and organizations should make it a priority to offer financial education to women.
If you are a woman, who is on the hunt for a platform to create wealth, we have got just the right thing for you
Create an account with Koshex, which is a savings platform that is aimed at helping Indians become Super Savers. Sign up with us for free today!