7 MinsMarch 07, 2020
The theme for International Women’s Day (IWD) 2020 is ‘Each for Equal’. The idea is that each one of us should do our best to achieve a gender-equal world. Empowering women financially is a major step towards achieving true gender
equality. As a woman, the best gift you can give yourself on International Women’s Day 2020 is to start working towards your financial independence. Follow a simple four-step process: ESIP – Earn-Save-Invest-Protect.
Earn
Today, women constitute a very significant and essential part of the workforce. Women professionals are leading several global companies. However, if your family or other circumstances don’t allow you to take
up a full-time job, there are several other opportunities available today to earn an income. The digital revolution has opened up various work-from-home options for women — these range from doing transcriptions, translations, writing/editing
to designing. The advent of food delivery apps has also enabled women to monetise their cooking skills by working as home chefs. If you have a flair for selling, you could become an agent for a life and/or general insurance companies. Just
surf the web and figure out which of your innate skills you can cash-in on!
Or you could start your micro-enterprise. There are schemes such as the Pradhan Mantri Mudra Yojna (PMMY) that give collateral-free credit to aid your entrepreneurial
journey.
Save
The second step towards financial independence is saving what you earn and carrying out your financial transactions independently. Do this by opening a savings account in a bank that has a nationwide reach and also
offers the latest digital technology. Take advantage of Axis Bank’s Women’s Savings Account, a new type of savings account, that offers benefits such as low
opening deposit, free cheque books, low average monthly balances, personal accident insurance cover, and Axis eDGE rewards.
Invest
Apart from trying to save from your income, it is crucial that the money earned must grow. In today's world, with increasing responsibilities and wishes, it is better to invest your savings to create capital for future
security. A woman desires to explore the world, create something of her own which sustains for the long term, and at the same time keep her family in a state of wellbeing. To achieve these goals you must explore bank deposits and mutual funds
as a simple and effective avenue for investments.
Fixed Deposits and Recurring Deposits: These are fixed-income instruments that offer guaranteed returns at the end of the investment period. You can invest in FDs if you have a lump sum amount. Or if you want to set aside a fixed
amount every month you can choose an RD. You can start with amounts as little as Rs 500 in an RD or Rs 5,000 in an FD.
Axis Bank offers flexible tenures on FDs and
RDs. In case of any emergency, you can also get a loan against FDs. Some FDs help you save on taxes. You can open or close a fixed deposit at any time through Internet or Mobile Banking.
Mutual Funds: The best way to achieve the objective of long-term wealth is by investing in Mutual Fund units through the Systematic Investment Plan route.
You can start with as little as Rs 500 every month. With a wide range of schemes, you can choose one that meets your investment style. If long-term goals are what you are looking for, look at equity funds such as large-cap or multi-cap funds,
which give inflation-beating returns. Or choose a balanced fund that is less volatile than a pure equity fund. Debt funds are suitable for shorter-term goals as they have very little risk. Axis Bank offers a range of mutual fund schemes from
leading asset management companies. Choose the ones that meet your needs, and can fulfil your various life goals. Click here to buy mutual funds online.
Protect
Life is unpredictable, but you can cushion yourself from nasty surprises by buying adequate insurance.
Or you could start your micro-enterprise. There are schemes such as the Pradhan Mantri Mudra Yojna (PMMY)
that give collateral-free credit to aid your entrepreneurial journey.
Health Insurance: Plans that cover the entire family are cheaper and hence generally the preferred option. However, these plans may be inadequate when
it comes to women-specific ailments such as breast cancer, uterine/cervical cancer, ovarian cancer, etc. Hence, also buy a critical illness plan designed specifically for such illness that can help bridge this gap. Since such plans offer payment
once the disease is diagnosed, they can be used for income replacement during the treatment period.
Life Insurance: Today, when a double income family is more the norm than the exception, it is essential to buy a separate
life insurance policy for the lady of the family. The insurance can help pay for your planned goals, in your absence. Besides, life insurance plans for women are cheaper than men because women tend to live longer than men and are less likely
to suffer from tobacco and alcohol addiction. Hence, don’t neglect this important aspect of financial planning and buy adequate life cover for yourself. You can also calculate your premiums using a life insurance calculator.
Axis Bank has tied up the leading insurance companies to offer you the best plans at cost-effective rates. Buy them online at the click of a button. For health insurance, the partners are Tata AIG Health Insurance and Apollo Munich Health Insurance
(now known as HDFC Ergo Health Insurance), while for life insurance the partners are Life Insurance Corporation and Max Life Insurance. Click here to know more about our Insurance Plans.
Disclaimer: This article is written by The Source, a Mumbai-based content creation firm. Axis Bank does not influence the views of the author in any way. Axis Bank and The Source shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision.
