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Health is wealth, may it be financial, physical or mental!  

Have you ever come across the term, Financial Health? Well, if yes then have you addressed it further? If not, then let us tell you. It is simply the state of one's personal monetary affairs which has many facets to it. Like the amount of savings, you have, how much you're putting away for retirement, and how much of your income you are spending on fixed or non-discretionary expenses.

There has been a lot of noise and buzz about mental health and physical health, especially for women, but ‘Financial health’ somehow has taken a back seat. There are a lot of measures out there by the government and other policymakers, however, it is never in consideration by the women themself. Because, somehow for women, it has been inculcated to not have any concerns about money, and that this is mostly taken care of by their male counterparts.  

As per a Tata AIA Life Insurance (Tata AIA) survey * about Financial Awareness Among Women, Indian women still shy away from making independent financial decisions. The survey also found that they still rely on the ‘man of the house’ when it comes to making financial decisions, although 44% of respondents prefer to make their own financial decisions when they have the option to do so.

But it’s time we change that! 

Here are a few steps: 

Power of knowledge:

Learning is the key. It should never stop. As we know the financial investment industry is at its best evolution, hence with new advancements and product launches in the sector, let’s not refrain ourselves from learning more. To ensure that you avoid financial pitfalls such as debt traps or reckless financial behaviour, it is important to dispel your fear of money. Instead, keep a close watch and keep gaining more and more knowledge about it. 

Budgeting:

This is by far the most important step. We, women, are always donning several roles and are always on the go whether as a housewife or a working professionals. Hence, setting aside a clear budget for everything would ease the steps of financial planning. It would also help in saving up better as you would have a clear picture of how much money you have in hand. 

To transact digitally:

Financial awareness comes in handy for women once they start mapping their transactions. And, what better than digital modes of transacting? For example, using UPI or other digital modes of transactions. It will help them stay abreast with the latest developments. Also, keep a tab on a daily basis. At the end of the month, one can easily map how much was spent in the household, shopping, fuel etc. This would further ease a lot of financial planning for women performing multiple roles, making them more efficient towards their goals. 

Diversification:

Picking the right group of investment products will help you reduce the risk and the fluctuation in returns. Deploy asset allocation investment strategy to balance the risk and reward. Simply, allocate your budgets amongst different assets like equities, fixed-income, and cash and equivalents. It completely depends upon individual portfolios. 

As it is rightly said, “Success comes in taking many small steps. If you stumble in a small step, it rarely matters.” Here’s how you can start. 

The times have changed. It's time to address the elephant in the room! And, ‘Tis the time of the year, New Year is, indeed, the best time to review your financial decisions to map the coming year. 

So, let’s take a pledge to prioritize our financial health and trust us, it is as important as your physical and mental health. It is a fact that if you are financially secure then you ought to be mentally calm in a lot of situations.