In simple terms, “financial independence” means having enough savings so you do not have to rely on work to support yourself. This might seem a daunting task, but you can achieve this by saving money regularly and investing wisely. Be aware that your savings (income minus expenses) will ultimately determine how much you can accumulate and how quickly you can achieve financial independence. As per a thumb rule, the higher the monthly savings, the higher would be your accumulated corpus.

Next, when planning for the future, it is also important to pick the right investment scheme according to your risk tolerance limit. If you are a conservative investor, you should ideally put your money in options that are not linked to the market. Conversely, if you are a moderate or aggressive investor, you can invest in stocks or equity/ hybrid mutual funds.

In this article, let’s study some important financial tips you can follow as a female investor. Also, you will learn the 5 best personal finance facts that can help you achieve financial independence faster. 

• To achieve financial independence, try to save at least 10% of your monthly income.
• Invest your monthly savings in retirement schemes like PPF, NPS, or SIP.
• Become money-smart by actively participating in family financial decisions.
• Keep track of daily and monthly expenses to understand your spending patterns.

To attain financial independence, female investors must save regularly and make smart decisions with their money. Follow these five tips for better results:

• Aim to save at least 10% of your income monthly. You can choose to invest in a retirement scheme like PPF, or NPS. Alternatively, you can even start a SIP in retirement mutual funds.
• Always take advantage of savings options available at work or school. Don’t wait for perfect conditions. You should have an “act now” mindset.
• Do smart debt management by paying off high-interest debt first. However, avoid paying off so quickly that it hurts your credit score.
• Build an emergency fund by saving three to six months of living expenses for emergencies like medical bills or car repairs.
• Gradually, establish a good credit score. A strong credit score will help you secure a loan at favourable interest rates and even make you eligible for high-reward-paying credit cards.

To attain financial independence, female investors must save regularly and make smart decisions with their money. Follow these five tips for better results:

• Aim to save at least 10% of your income monthly. You can choose to invest in a retirement scheme like PPF or NPS. Alternatively, you can even start an SIP in retirement mutual funds.
• Always take advantage of savings options available at work or school. Don’t wait for perfect conditions. You should have an “act now” mindset.
• Do smart debt management by paying off high-interest debt first. However, avoid paying off so quickly that it hurts your credit score.
• Build an emergency fund by saving three to six months of living expenses for emergencies like medical bills or car repairs.
• Gradually, establish a good credit score. A strong credit score will help you secure a loan at favourable interest rates and even make you eligible for high-reward-paying credit cards.

Top 4 personal finance facts for girls

Apart from the tips mentioned above, female investors should also learn these five most important personal finance facts:

1. Always have your own bank account

Having your own bank account gives you financial independence. That’s because you won’t have to depend on others to manage your money. It allows you to save for future needs and most importantly, gives you “better control” over your spending and savings.

Your personal bank account ensures that you can plan ahead for your personal goals and any emergencies that may come up.

2. Get involved in big money decisions in your family  

To become money smart, it is important for females to actively participate in family financial decisions. In most families, many big and small choices about money are made daily. Being part of them ensures that you have a say in what’s happening with your finances.

On the negative side, if you are not involved, you might miss out on opportunities to make the right decisions for yourself and your family.

3. Regularly track your expenses  

Be aware that how quickly you can gain financial independence mostly depends on your monthly savings. And the best way to enhance your savings is by tracking your expenses. By doing so, you not only gain control over your money but also avoid wasteful expenditures.

Ideally, you should start by recording all your daily expenses and then monitor your monthly income and expenses. This helps you understand how much you are spending on:

• Debt
• Savings
• Other necessities

Upon repeating the same process for a few months, you will get a clear picture of where your money is being spent and how much is left after expenses. Now, using this information, you can figure out areas where you need to save more or spend less. Also, you can better decide how much you can invest monthly through SIPs or RDs.

4. Make a realistic retirement plan  

To quickly achieve financial independence, you must start planning for retirement in your 20s and 30s. That’s because these are the most productive years of your life. During this time, you must save and invest wisely to get a secure financial future.

Start by researching different retirement plans and choose one that fits your goals. Some common options you can consider are PPF, NPS, or any retirement mutual fund. Please note that by starting early, you give your investments time to grow. This gives you enough savings to live comfortably during your retirement years.

If you are looking for safe investment option, then you can consider investing Bajaj Finance Fixed Deposit. With a top-tier AAA rating from financial agencies like CRISIL and ICRA, they offer one of the highest returns, up to 8.85% p.a.