How ably single women are manging their hard-earned money?
Celebrated British writer Virgina Woolf in one of her works A Room Of One’s Own mentions the importance of a woman having financial independence if she wants to ‘write fiction.’ Drawing upon the statement, it can be said that a woman’s economic empowerment is highly essential—whether she wants to ‘write’ or become an ‘entrepreneur.”
Times are changing. So are societal norms.
However, imprints of deep-rooted cultural mores are extremely difficult to uproot at one go. Despite facing stiff competition from feminist circles, long-standing patriarchal mores continue to hold sway till date in almost every aspect. Needless to say, women’s financial independence would be any exception, more so, if you happen to be single!
Whether it’s about starting off on your own as a financial advisor or simply experiencing the sheer joy of first employment – for single women the journey of managing finances is somewhat rugged.
Take for example, Sujata Mehta, 37, who has now been working as a financial advisor for 10 years, had to traverse through choppy waters before establishing herself. From acquiring individual clients to convincing asset management companies about her ability to time capital markets—she had lot of challenges to overcome during the initial years. “Many times, it so happened that even after an hour-long meeting, clients would still be somewhat doubtful, just because I was a woman,” recalls Mehta. But, her never-give-up attitude paid off and today her clientele base has increased manifold. However, interestingly, Mehta points out that her female clients still continue to be less in number.
It is rather strange even today; many women including professionals earning a handsome compensation choose to fall back on male members when it comes to taking decisions pertaining to financial investments.
Why do so many women tend to stay away from taking independent decisions about their own money?
Sharing her views on the same, Shalini Dhawan, Co-Founder and Director, Plan Ahead Wealth Advisors says, “This is because, financial literacy among women is extremely low. All thanks to stereotypical mindset like “ladki hain, ise kya karna hain paisa ke bare main sikh kar?” that continues to hold ‘significance’ among many.”
Resonating a similar opinion, Ruchi Sankhe, MD, Origination and Client Coverage, Waterfield Advisors says, “While attitudes are gradually changing, but social wiring is still strong and many educated women still continue to drop out of the labour force after marriage.”
Practicing psychotherapist Mansi Poddar also feels that the societal fabric of the country is to be blamed to a great extent. “Since childhood, we are made to believe that managing money is a man’s business and we buy into it easily,” she adds.
Ever-evolving societal paradigms have also affected the current demographics, especially in urban India. In the last one-decade or so, number of single women in the country has increased rapidly owing to myriad socio-cultural reasons including soaring divorce rates, women marrying late or some even choosing not to marry at all.And a large chunk of this population happens to be working professionals.
However, it is rather surprising that most of these women find it challenging when it comes to making their money grow. Unearthing reasons for the same could end up on endless discourses. While there are lots of reasons to substantiate the statement, most often it is believed that managing money hold different meaning for different women. For example, financial investments for a 45-year-old single mother would be different than that of a 24-year-old who has just starting working.
Then is there any particular or right age for women to begin with their journey of financial investments?
Well, while there is no fixed age as such, however, experts opine that, earlier the one starts, the better returns she yields.
Being single in 20s imply that you are young and it is better that you begin investing immediately to be able to reap the benefit of power of compounding. Nonetheless, in certain cases it becomes imperative that young people who have just stepped into the professional space end up facing difficulties not only in terms of investments but also in managing day-to-day expenses.
Reshma Sen, a Gurgaon-based designer employed with a leading European footwear company narrates a similar experience when it comes to managing money as a single woman. Sen, 24, lives alone in the city and has to bear monthly expenses including a rent of Rs8000. “After meeting my mandatory monthly expenses, I am left with very less, which makes it rather difficult for me to consider investing large amounts of money right now,” says Sen. Since cost of living in Gurgaon is comparatively high, she is often forced to curtail on hobbies like travelling or watching movies.
However, just like any other GenZ, Sen is focused to become completely financially independent. She also harbours a dream of funding her own wedding. Sharing her plans about the latter (blushing at the same time), she says, “Though I have been researching about investment tools such as mutual funds, I am yet to take the plunge, because, I am yet to fully-understand its functionalities.”
Among her long-term goals, Sen plans to invest in a property and secure her retirement. However, she says that given her current financial health, she needs little more time to realise these goals.
Suggesting how to make investments work for someone like Sen, Aditi Khandelwal, a certified financial planner, associated with Sarsa Financial Advisory Services, says systematically investing in a calculative manner can help Sen realise all her dreams including travel. Khandelwal suggests Sen can choose to invest either in money market fund or low-duration fund in order to realise her short-term goals like travelling. On the other hand, the former suggests in order to realise the long-term goals Sen can opt for balanced advantage funds. “However, she must ensure that the minimum investment amount is at least Rs10,000 per month to begin with,” confirms Khandelwal.
While for 20-something Sen, realising life goals through systematic investment planning is the way forward, for 33-year-old Tania M, securing her future financially is of utmost importance. A freelancer, Tania M’s tryst with managing money began when her marriage fell apart. Its then she realised the importance of being financially independent.
Sharing her views on the importance of financial literacy among women, Khandelwal comments “Whether a woman is separated, single or married, being financially literate is highly essential.” She goes on to elaborate that whether it is to sail through tough economic times or to be prepared for emergencies—being financially literate and of course independent can help women deal with critical situations in a better fashion. “Financial independence allows women to raise voices against any kind of violence,” she adds.
Dhawan on the other hand feels no matter whatever profession a woman is in today’s time, it is extremely important that she not only becomes financially prudent but also ends up taking investment decisions in order to secure her future. However, Dhawan also points out that still many women professionals choose to opt for investment tools that are risk free.
Delhi-based professor Debashree Sinha is one such example. Associated with a leading private university, 34-year-old Sinha is yet to take riskier plunges.When asked why, she says, she has never really explored personal finance as a domain; hence chooses to invest in traditional tools such as Public Provident Fund (PPF) and bank fixed deposits. “As long as my money is safe, I am happy with it,” Sinha says.
However, since her employer belongs to the private sector, Sinha has gradually started working towards her retirement goals. Being risk averse, she has opted for PPF where she has been keeping aside Rs3000 every month since the last three years. She has also been parking money in India Post’s National Pension Scheme.
Sinha aspires to invest in a property in Noida in the near future, but she is a bit worried about finances. Dhawan suggests that Sinha starts an SIP of at least Rs12000 for the next seven years so that she can make the down payment and start off with the equal monthly installments. “However, given that academics is comparatively less paid, its prudent that she avails a loan,” adds Dhawan.
When discussing about finances and single woman, it would be injustice to leave aside single mothers. Being a mother is arguably the toughest job in the world; more so when she is single, that too in a country like India. Needless to say, her battles include ensuring financial security for herself and her child.
However, modern women rewrting the stories of their lives..
Kolkata-based IT professional, writer and social activist Sumita Dutta, 45, a single mother by choice is an example of such a tribe.
When asked about whether she faced any difficulty in establishing her identity as a single mother,Dutta answers with full confidence. “I have always been very independent. And since I had already established my identity in the professional world, I did not have to worry about the same in the personal space when I adopted Rajoshi”
When it comes to managing finances, Dutta swiftly strikes a balance.Along with saving for retirement, she has been saving for her daughter’s education. “Rajoshi wants to become a veterinary surgeon and aims to pursue her degree from the UK,” says a proud Dutta. However, her only concern is the fees. Though she has been saving for this goal, Dutta is still looking for a tool that can yield better returns. Keeping in mind inflation and returns-on-investment, mutual funds are the best option for Dutta suggests Khandelwal. “A monthly SIP of `18000 in equity mutual funds for seven years is good. Post that Dutta can start another SIP in liquid debt and shift the entire corpus in the same fund for one year to reduce risks,” she advises.
Asserting on the significance of single mothers being financially independent, Dhawan says that they need to be financially savvy, as they have to fend for both—herself and her children. “We are in an age where financial literacy can either make or break futures,” she confirms.
These days financial advice is easy to find, but navigating the same can be challenging. Single women should always be in control of their finances. Since life is unpredictable, the least we can do is to secure our own future!