When it comes to investments, it is a category that is rarely featured on women’s to-do-list. The mantra that can help every woman manage their money well is – earn more, save more and spend less. You have to simply follow the order – first earn, then save and then spend.
All you need to do is keep these 3 things in mind.
- Choose the right way to invest:
Just like other products, online investment plans are cheaper and convenient. You can choose to directly start investing online or you can go through an intermediary. However, the latter could be manipulative and you may have to go through a lot of paperwork.
- Choose the right investment plan:
Choose an investment plan as per your needs and risk appetite. If you have a very low-risk appetite, then choose a guaranteed return savings plan. If you have a moderate risk appetite and wish to reap the market’s benefits then you can choose to invest in a unit linked insurance plan. Estimate the returns. Consider all factors like compounding, additional allocations and tax benefits.
Consider the duration: for how long can you stay invested? Also look at the post-tax returns of an investment avenue. Will the returns be tax-free?
- Keep it Simple:
Irrespective of what is your financial goal, you need to understand that a complex investment strategy may end up de-motivating you. If you wish to create wealth, choose a plan where you invest regularly that grows your money over a period of time.