Step-By-Step Guide For Women To Save And Invest – Forbes

Women have always been known to be adept at managing money. However, they are not often considered experts or true partners in how money needs to be invested. Across the world, habitually, many financial matters are viewed through a gender lens. Everyone needs a plan, a guide to financial wellbeing.

Saving and investing money go hand in hand. It must begin early in life and ideally reflect your unique risk-return appetite. Your financial plan or your investment portfolio is much like an offspring you need to nurture it, give it time, be patient with it, and allow it to evolve with time and circumstance. A well thought-out financial plan will help you navigate the personal and financial tumult that life will throw your way.

Heres a step-by-step guide on how you can chart your route to a financially secure future:

The very first step to independence, financial or otherwise, is the ability to make informed decisions. To win the lottery, you must first buy the lottery ticket, goes the anecdote. A robust financial plan requires that you understand the basics of investing.

To plan your journey, you must know where you are starting from.

Now that you know how much you want and can invest, it is important to determine why you are investing and subsequently, where you should invest. Your why will drive your financial plan.

The power of compounding, dubbed as the eighth wonder of the world, helps grow your investments exponentially. It ensures that you earn interest on not just the principal you invested but also on the interest that is generated periodically.

Among the many things that the Covid-19 pandemic has taught us, one is that you can never be too prepared for the vagaries of life.

As is often said, nothing in life is certain but death and taxes.

In financial planning, a do-it-yourself (DIY) approach can often prove to be sub-optimal.

It is best to keep emotional and behavioral biases at bay.

Financial wellbeing is about being in control each day, financially, and feeling confident about the future. It really is as simple as thattake the initiative, create a plan, and stay disciplined. You are on your way to achieving both financial independence and true empowerment.

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Step-By-Step Guide For Women To Save And Invest - Forbes