How often have you heard the term financial independence and pondered on it? What does financial freedom mean to you? Do you think financial freedom should be a priority?
Let’s explore the answers to a few such questions
What is financial freedom?
Margaret Bonnano quotes "Being rich is having money; being wealthy is having time."
People's definitions of financial freedom vary based on a wide range of factors, including age, gender, location, and objectives. For some, it can be as simple as having enough wealth to not worry about money. For others, it might be an opportunity to take a lower-paying or non-paying job in order to pursue their passion. Yet others might find their financial freedom in being able to travel to destinations they please or buying a home. Similarly, for a homemaker, it may mean spending money whenever she wants or sustaining herself in case of emergency, and so on.
In broad terms, financial freedom means ‘Managing your money and life in the way that works best for you. A feeling of financial health and freedom, free from stress and worry.’
What does financial independence mean for a woman? Why are more and more women jumping on the financial freedom bandwagon?
In basic terms, financial independence improves women's sense of security and respect, regardless of their socio-economic status. Breaking free from financial constraints enables women to retire early by liberating them from the chains of financial stress and helps them bask in the joys of a well-deserved retirement.
Indian society had traditionally been male-dominated, with women often relegated to the role of caregivers and homemakers. This had led to a belief that women are not capable of managing finances or making important financial decisions. Other factors that contributed to this were lack of access to education and job opportunities, workplace discrimination and bias, cultural and societal expectations, etc.
In recent years, more women have been seeking financial independence due to higher education, career opportunities, changing social norms, desires for autonomy, financial security, and better access to financial products and services.
Why should financial independence be a priority for a woman?
1. Empowerment: Women now have greater access to financial products and services that can help them achieve their financial goals and attain financial freedom. This includes access to credit, insurance, and investment products that can help them grow their wealth and achieve their financial aspirations. It allows them to pursue their goals and to live life on their own terms.
2. Gender Equality: Today, women work in a variety of roles yet not all working women are financially independent. Investing decisions are still made by the men of the family for most working women. It's also possible that they are not saving enough or not saving smartly, i.e., they barely outpace inflation. Achieving financial independence is a crucial step towards achieving gender equality. It ensures that women have equal access to economic opportunities and resources, and are not dependent on men for financial support.
3. Improved Well-being: Women and their families benefit from her financial well-being. There is a reduction in stress and anxiety associated with financial insecurity as well as an increase in future stability and security.
4. Role Model: Women who achieve financial independence can serve as role models for others, inspiring future generations of women to pursue their dreams and aspirations.
Overall, financial freedom for women is essential for promoting gender equality, empowering women, and improving their well-being and that of their families and communities.
In a world filled with opportunities, financial education is the key to unlocking them. And yet, many (if not all) women continue to see their earnings as supplementary to what their partners make.In order to ensure that your money is managed properly, we recommend that you educate yourself on financial matters. Participate in a financial literacy program and/or read financial blogs, journals, magazines, and newspapers. You can also seek the guidance of unbiased business experts who can guide you through wealth creation.
Following are a few examples of empowering women and their views on financial independence.
1.Sheryl Sandberg, COO of Facebook and author of Lean In, has encouraged women to negotiate for better salaries and benefits, stating, "Knowing that things could be worse should not stop us from trying to make them better." She has also emphasized the importance of building a strong support network and finding mentors to guide you on your financial journey.
2.Priyanka Chopra, a famous Indian actress and producer, has spoken about the importance of financial independence for women in multiple interviews. In an interview with Harper's Bazaar, she said, "Financial independence is paramount. My mom always said, 'If you don't have your finances in order, you're always going to be at the mercy of someone else.' In another interview with CNBC, she stated, "I think the most important thing is financial independence, not just for women, but for everyone. When you're financially independent, you have the ability to make choices in your life. You're not stuck in a situation because of financial reasons."
3.Arundhati Bhattacharya, former Chairperson of State Bank of India, says "Don't depend solely on your spouse or family for financial support. Create your own financial identity and have a backup plan."
4.Melinda Gates, co-founder of the Bill and Melinda Gates Foundation, has emphasized the importance of investing in women's financial empowerment, stating, "When women are able to participate fully in the economy and public life, their families and communities prosper. It's not just the right thing to do, it's the smart thing to do."
5.Falguni Nayar, the founder of Nykaa, has spoken extensively about the importance of financial independence for women. She says “"As women, we need to take charge of our financial future. We need to educate ourselves about money, invest wisely, and make smart financial decisions that will help us achieve our goals and aspirations.
The trend of more Indian women opting for financial is likely to continue as more women gain access to education, career opportunities, and financial products and services, and as societal norms continue to evolve to be more inclusive and supportive of women's financial independence. The conclusion we wish to make is that more and more women should begin educating themselves about finance, invest in themselves and their skills, set clear financial goals, and make a plan to achieve them. It may take time, dedication, and hard work, but the rewards of achieving financial freedom are truly worth it.
In the words of Falguni Nayyar, – “Don't wait for someone else to give you financial independence. Take charge of your own financial future and make it happen for yourself.”
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Sanjana Patil
Service Communication Partner
Seventh Contact Hiring Solutions.
