With single incomes being no match for a bloating inflation, more and more women are taking their earnings and investment seriously these days.
However, when saving, women need to keep the bigger picture in mind and save for themselves as well as for their family. It is also simply not enough to just save money. They have to invest in order to get more returns.
There is no particular age to start saving for your retirement. The earlier you start, the better it is.
Remember, inflation is always going to reduce the value of your money. Let inflation be an important factor in mind before you plan your investments.
for teenagers
It is obvious that women will not have much cash in hand as teenagers, but you can still cut down on unwanted expenses and save some pocket money.
You can save the money by perhaps opening a bank account and use it to reach your short-term goals such as buying gifts for your friends/parents, for your birthday party and so on. It will also help you build a savings habit.
in your 20s
In their 20s, women decide their career and future.
Equities can be a good investment choice as you can take more risk when you are young. You can choose to invest in mutual funds for your long-term goals, as mutual funds will give you the benefit of professionals managing your money.
Take up a suitable health insurance plan at this age to take care of your medical needs.
Make sure you have sufficient liquid funds to help you during emergencies.
This should be the right stage to decide your long-term goals.
You should plan in such a way that the long-term investments give you good returns at the appropriate time.
in your 30s
At this stage, women are generally married and likely to have children. They become responsible for their family, and they have to secure their children’s future.
It is advisable to choose suitable term insurance plans and mutual funds that perform well. You have to choose educational plans for your children and tax plans for yourselves.
You can also choose to invest in real estate for long-term growth. Investment in gold is another good option. Always buy gold in the form of coins or bars or invest in gold funds, never consider gold ornaments as investment. Gold in the form of jewellery is only going to cause loss in the form of wastage and production/making charges.
in your 40s
You will generally be earning more money at this age so try to increase your retirement savings and savings for your children’s marriage and higher education. If you were planning to buy/build a house this would be the appropriate stage.
in your 50s
As you will be nearing retirement, invest in funds that involve lesser risk. Try to transfer a portion of your investment in equity to debt because in case there is a fall in the market at the time of your daughter’s marriage you will face loss and will not get sufficient money. Therefore, if you are planning for your daughter’s marriage, shift your funds from equity to debt one year prior to the wedding planned.
Investment in senior citizen savings scheme would be appropriate for women who are above 60 years, as you will receive more returns compared to other schemes. Bank deposits and FDs will give you decent returns and your money will be safe. You can also rent a part of your house and earn money out of it.
(The writer is CEO, bankbazaar.com)