Women The Great Money Managers

6 Reasons Why Women are Great as Money Managers of the Family

Women The Great Money Managers

Women the Money Managers

When we talk about Women, we know some of them as Doctors, Teachers, Professors, Engineers etc. But when the women are not working, they are called as ‘just housewife’. This word ‘Just’ before ‘Housewife’……. We need to break this bias.

 ‘Nirmala Sitharaman’ is the current Finance Minister of India who represents the Ministry of Finance as a whole.

If a woman can represent the Ministry of Finance as a whole, why can’t you take Financial Responsibility for your family?

It is not about the Profession or Post. Every woman has some inbuilt qualities within. Every woman is a great money manager or can be one.

Let’s see why she is a great money manager.

Pro in budgeting

Women have always proved their management skills that they are better at budgeting by household income and expenses to provide a comfortable lifestyle for their family.

We all must have witnessed our mother or grandmother dividing the money into different boxes or jars for various expenses such as food, clothing, education, etc. In the world of Finance, this is called “Diversification”.

This habit helps her to curtail unnecessary expenses and ensure that enough money is allocating towards savings and ultimately investments. Budgeting is the first step or backbone towards financial planning.

Long Term Vision

If you study the history of women’s savings and investments in India, it proves that a majority of the women accumulated funds over the long term to use the same for special occasions or contingencies.

For example, a mother starts buying Gold from the birth of a girl child, so that it can be used for the daughter’s marriage after 25 years. This is the best relatable example of a long-term view.

The long-Term vision is very important in Finance. A long-term perspective towards savings and investments is the key to building wealth. Women have this ability in them. Instead of being excited about short-term gains, women tend to focus on medium to long-term financial goals.

Their long-term vision ensures that women investors have started the journey towards financial freedom.

Discipline is a Key

As mentioned in the previous point, the long-term view is very important. But, what is required to have that long-term vision? ‘Discipline’ is what you require the most.

To achieve any long-term goal requires discipline and patience. It will enable you to reach your big targets faster than a scattershot savings plan. And the good news is women are known for their disciplined approach towards money management.

They set aside a certain sum as saving from household income every month, which they traditionally invested in gold. Whether gold is the right option? It is another part, however, a woman has this habit of being disciplined.

With rising awareness levels and increasing knowledge of better investment options, women have started investing in mutual funds through SIPs. The minimum amount of investment in SIP is just Rs. 100/- for many funds.

This disciplined approach towards investment makes the power of compounding work for them and thereby sets them up for long-term success.

Multitasking Skills

A woman performs many activities in a day at the same time. She is a great Multitasker. And if she is working professionally, the challenge level increases. She has to maintain a Work-Life balance.

This skill is important in managing money as well. Managing expenses, budgeting, Insurance aspect, investment according to risk profile, time frame analysis, Asset Allocation, Rebalancing of portfolio, review, etc. all these tasks are to be taken care of in Money Management.

So, you can see many successful women Wealth Managers in India & in the world. One of the examples is Swati Kulkarni. She is an executive vice president and fund manager at UTI Asset Management Company.

Always willing to learn

Learning is an inevitable part of every woman’s life. Learning is nothing but a change, and change leads to learning. The two are inseparable and go hand in hand. Many changes happen in every woman’s life that make her stronger and more independent.

However, in our society men have customarily taken care of money management on their behalf, but women now want to take the lead in money management.

In India, there are many women entrepreneurs, woman wealth managers, advisors, etc. Be it Arundhati Bhattacharya (Retired Indian Banker & former Chairperson of SBI), Sudha Murty (Indian businesswoman, teacher, author, and social worker who is the chairperson of the Infosys Foundation) or Falguni Nayar (Indian Businesswoman & CEO of Nykaa).

Analytical Approach

Women have strength and courage in the decision-making process. Studies prove that women implement an analytical approach to decision-making more often than men. To solve a problem, women showed trust in data, while men were more inclined to go with their intuition. Woman takes a decision more practically.

Women take time to look at the positive and negative side of their decision and are generally quite calm while making a difficult choice. This attitude is different from men who have been found to be quick in making judgments and less likely to scrutinize data that might prove them wrong.

I hope we have given justice to the qualities of women as far as managing money is concerned.

As we have seen that women have each and every quality to be better money managers, then why do some women think that they can’t?

The reason behind this, that I feel is a lack of technical knowledge or they are not habited to do that. But, this is not a major issue.

What money you have is not important. Thousand, Lakh, or Crore, the amount does not matter. It is important for you to start the first step towards investment if you haven’t yet started.

Also Read – Planning For your Goals? – Don’t miss out on these small things

Plan your Goals and Invest

Visit the FundBox section on our website, Plan your Goal from the Tools section and start investing with a few clicks. We are offering ready-to-invest Mutual Fund Portfolios according to your suitable time frame, risk profile, and return expectations.

You will get to know each and every detail of your selected FundBox (Mutual Fund Portfolio). By going through the details & description, you can easily find out whether this FundBox is suitable to your Financial Goals and Risk Appetite. You can also assess your risk profile from the tools section.

No technical knowledge is required, which was maybe one of the reasons for women not investing money. FundBox, the Mutual Fund portfolios are well researched by experts.

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