5 personal finance tips for women in India

Manjula NR

Lakshmi is the Indian goddess of wealth, fortune and prosperity. But when it comes to her mortal counterparts, the story for Indian women has been starkly different. For a long time, Indian women had taken (or were given) a backseat when it came to money. But the situation is slowly changing. A new generation of educated women is working in well-paid jobs and single-handedly managing entrepreneurship across the country. This has resulted in women having a more considerable disposable income. With this in focus, let’s discuss different personal finance tips for women in India.

1) Be aware of your spending habits

“It is a truth universally acknowledged that a woman in possession of money must be in love with shopping.” Jane Austen didn’t write this line, but she could have. Women are often pegged as shopaholics, and while this is a stereotype no doubt, there is a kernel of truth in it. Hence, when different e-commerce websites offer ‘mega’ discounts on a weekly basis, it can become all too easy to go on a shopping spree right from your couch. Shopping is not a bad thing, but it is essential to draw a line and balance between saving and spending. Don’t spend more than you earn. This allows you to build savings and create wealth in the long run.

2) Don’t rely solely on your partner for financial needs

In India, a large number of women are competent homemakers, but when it comes to money-matters, they depend on their spouse or parents. Financial independence is an essential goal for every woman in the country. This not only gives you the freedom to make your own financial decisions, but it also boosts morale and makes you self-sufficient. So whether you want to buy things, go on a trip with your friends or even increase your skills by signing up for a new course, you can now do it by yourself instead of depending on others for money.

3) Create an emergency fund

The future is uncertain, and it is always good to have a Plan ‘B’ when things go south. For example, a sudden medical emergency, a change in the country’s economic scenario or a sudden layoff in your company are realistic scenarios that could occur in life. And the best way to minimise the damage in such situations is to be prepared. This is where an emergency fund can be beneficial. Experts recommend that an emergency fund should be equal to six months of expenses. This can help you stand on your feet for a sufficient period despite any financial setbacks.

4) Have an investment plan

As a woman, there are many financial goals you may wish to achieve over time. Wealth creation, funding your child’s educational expenses and retirement planning are a few examples. This is why it is a good idea to sit down with your spouse and create an investment plan for you and your family. Set aside a certain percentage of your monthly salary towards investments for such goals. For example, when you invest just Rs. 10,000 per month in mutual funds through a Systematic Investment Plan (SIP), you can create a corpus of Rs. seven crore at the end of 30 years!

5) Invest in yourself

This is perhaps the most crucial financial tip for women. Many women feel intimidated or are afraid to ask questions about financial matters because it appears complicated. Instead, they rely entirely on their spouses to manage their finances. The best way to avoid this situation is to educate themselves about money management and investments. For example, you can apply for a financial course at your local college or even online to get a better understanding on how to manage your money.


These tips can help you create your financial assets in the long term. This way, you can plan your retirement, holidays, and the future of your family without any hassles.