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Women and the art of financial freedom

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Riya Mathur is a successful career woman since the past 15 years but is not very savvy when it comes to managing her own funds. "I just don't understand finance,'' she says.

Sujata Shetty earns millions for her employer but is clueless about her own finances. "My husband invests on my behalf,'' she says.

The story of Riya and Seema could well be the story of most women in India.

Most women, including successful, highly paid professionals, usually take a backseat when it comes to deciding on investments aimed at retirement or wealth creation. They are quite happy to let the male relatives or acquaintances handle their finances and investments. At times, the women are not even aware of the investments.

While this lackadaisical attitude to money may not matter much during the good times, but it could spell trouble when things are not so hunky dory. There are several instances of women grappling with serious financial issues after events like death, divorce, illness or loss of a job of their partner.

For instance, a professional was shocked to discover that her husband had taken several loans from different sources (close to Rs 30 lakh). Worse, she did not get any insurance money either as her husband had committed suicide. In another instance, a wife was well provided for but faced financial problems as she had no clue about her husband's various investments and bank accounts.

Sometimes, society norms and emotional issues pose hurdles for women who are capable of managing their own funds. ``My husband would see it as a trust issue if I were to say that I will manage my own finances,'' says Sujata. At other times, it would be seen as a sign that the women is seeking independence from the husband. Also, a women wanting to take care of her own finances may be seen as greedy or money-minded.

Despite these problems, you need to find a way to explain about the need for you to be aware of your finances if you wish to achieve financial freedom.

We spoke to experts for their advice on how women can be money-wise:
Set a financial goal
: Depending on the circumstances of your life, decide on your financial goals, be it investing for retirement or wealth creation. Make sure you spend and invest in line with your goals.

Knowledge is power: You can take an informed decision only if you know the subject well. Do the necessary research before investing. "Women need to get their feet wet. And they need to know that investing in the stock markets is 'not gambling','' points out Rajeev Kumar, chief & appointed actuary, Bharti Axa Life Insurance Company.

Take rational decisions: "Women need to be less emotional when taking financial decisions,'' says Kumar. For instance, some women refuse to sell a particular stock as it is an anniversary gift.

Learn from experience: "I burned my fingers once when I invested in equities. Since then, I keep away from the stock markets and prefer to invest in FDs,'' explains Riya.

Contrast this attitude with that of a male investor who along with his friends lost close to Rs 55 lakh in the early days of investing. Undeterred he continues to invest in the markets till date, wiser and more successful.

Women need to learn to let go of losses and move on.

Increase their risk appetite: Generally speaking, most women are risk averse and prefer investing in safe avenues. But remember, in life rewards are proportionate to risks.

Seek expert guidance: Women tend to seek the advice of relatives and friends for their investments. Instead they should "discuss their problems with experts who can guide them,'' advises Arnav Pandya, chartered financial planner and financial advisor.

Take responsibility: Finally, women should take charge of their own finances. After all, who better to take care of your money than you. ``Women manage the household budget so well. This is just an example of how they are far better equipped to handle money in an effective manner,'' says Pandya.

(Names have been changed)

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