You may be young or middle-aged, a homemaker doing something small, a freelancer, or a full-time working professional. It doesn’t matter who you are or how much you earn. You must always set aside some savings and invest it for yourself, before you begin pouring from your cup. Here are three compelling reasons why you should do it:
#1 We Think Of Others First
By nature, we are tuned to thinking and providing for others first and, most of us have not one, but two families for which we do this exercise continuously. When your child needs help, you are there. When your parents or in-laws need support, you are there. You take care of your siblings till they can stand on their own legs. Your partner wants to quit the 9-to-5 routine and wants to become an entrepreneur, you stand by them.
In the process of taking care of everyone, you end up sacrificing on what “you” want to do in life. A promising career many times goes out of the window as other more important responsibilities take precedence. And, then a comeback looks overwhelming. Even if you have managed to keep the job, saving for the child’s education / marriage, sending out money to parents or supporting their medical needs, sharing household expenses and home loan EMIs, all take precedence over saving something for yourself.
You love travelling. You want to do more certifications/ courses so that you move up the corporate ladder. You want to start your own business venture for which ideas have been brewing in your head since college. And finally, you dream of a life where you enjoy the freedom to do what your heart tells you to.
For all this, you need to put yourself first, save enough and invest well so that the money will work for you when you fall back on it.
#2 We May Be Financially Incompatible With Our Partners
From childhood, we are always taught to adjust to everything. But adjusting in money matters can have far reaching consequences for our financial independence.
In many households, women take decisions on expenses as she is told that she is better at finding the best value for money; the partner takes decisions on investments as it is a ‘man’ thing to do. EMIs may be shared because both partners are working but, the burden may not be in the proportion of their salaries, or the assets may not be in joint names. You may live within your earnings, but your partner may thrive on credit cards. You may be ambitious in your career, but your partner may be content with less.
The reverse can also hold good. Your partner may be savvy and be investing in equities and mutual funds, but you may, in the pretext of being risk-averse, prefer investments in real estate and gold assuming it is safe. You could be the splurging type, and your partner may be thrifty.
Thus, ‘money’ is one of the key aspects to be discussed with your partner. Differences can be overcome if you draw boundaries and clearly set aside personal savings and investments. This should be separately carved out from any joint assets and liabilities. This corpus will always back you and give you the confidence to make independent decisions in life, when you must.
#3 We End Up In Unique Situations
One of the most common situations women find themselves in, is having to take a career break for childcare, eldercare, etc. Then, there are single women with children, women who are divorced/separated, women with deceased partners – the list goes on. Joint assets and liabilities become a point of contention in separation; Succession tussles happen when a partner dies without a Will.
All these situations are very unique to women. And when legal and financial angles join hands, it sends most women into a tailspin. In challenging circumstances, nothing but a financial safety net will come handy to tide over most difficult of times. Even if you have to start from scratch after a change in life situation, your investments will help you hold your head high. And building this safety net cannot be done overnight. It involves systematically thinking for yourself and putting your interest on priority at all times.
By Yourself, In Yourself
While all the above factors point to why you must invest for yourself, it is equally important that you must invest by yourself. That doesn’t mean you follow tips on social media, a suggestion from a friend here and recommendation from a relative there. For all of us, it is very difficult to find time to do all the research by ourselves too. Choose a trusted advisor to do the job for you – an advisor who will explain things to you, keep your interest in mind and not burden you with anything that will not suit you.
Lastly, invest in yourself too. You could be someone’s daughter, wife, mother or sister or sister-in-law. But you should have an identity for yourself. That identity will give you the confidence and the ability to handle all things, including your own investments.
Happy Investing!
If you wish to join hands with fellow women who have joined hands on their investing journey, reach out to Kodeeswari!
