Last Updated on November 4, 2023 by BFSLTeam BFSLTeam
Today’s world demands that women should be financially independent as well as emotionally independent. Women in the current digital era are more educated and ambitious than ever before. Families have recognised the need for educating a girl child so that she may never have to depend on a male for her requirements and can financially sustain herself should the requirement arise.
Women, themselves, acknowledge the fact of being financially independent and being able to afford their own lifestyles. In view of this, if you are wondering what it really means to be financially independent, and financially robust, you can consider a checklist compiled to guide you.
The 5-Point Checklist – Becoming Financially Independent
Being financially independent means being financially strong and confident. Having a source of income translates to you being able to finance your needs and your wants in case you ever have to. What’s more, if you are single and have plans to marry in the future, you come across as a woman with a sense of self-esteem and the ability to cope with issues. Here is your financial checklist that lets you know what you should consider to become financially independent and how to do so:
- Checklist Item #1 – Have an Emergency Fund
An emergency fund is a corpus that you should have collected in case of any sudden financial emergencies that crop up. Ideally, an emergency fund should be equal to the amount of 5-6 months of your monthly expenses. For instance, if your monthly expenses are equal to Rs. 40,000, then your emergency fund should be Rs. 2,40,000.
- Checklist Item #2 – Have an Income Source
This is important whether you are married, getting married, or single. Having your own source of income is essential for you to make your own financial decisions and be financially independent. You could either start a small business or do freelance or part-time work, but some source of income is necessary. This gives you self-respect and a financial identity of your own.
- Checklist Item #3 – Have a Source of Income in the City You are Moving In case you are relocating from one city to another or even changing your country of residence, due to reasons of marriage or other reasons, you may want to ensure you have a way to earn your own income in the location you are moving to. For salaried professional women, marriage may be an important step, but so is finding an income opportunity to maintain your career or business.
- Checklist Item #4 – Start Your Investment Journey
Whether you are employed or not, it is important to save and invest some capital at regular intervals. This is essential to build your wealth gradually. In fact, if you are about to get married, or have got married, any gifts received before or during your marriage may be invested (according to Hindu law). Your gifts are your “Streedhan” and these may be invested.
- Checklist Item #5 – Secure Your Documents
To make certain investments and conduct any other official procedures, like opening bank accounts, etc., you need to have your documentation in order. It is a good idea to collect your important documents and have them safely stored in one place, as well as store them digitally. These documents include your PAN and Aadhaar cards, Voter ID, Driving License, Passport, any bank passbooks, Policy Documents (Life Insurance, Term Insurance, Health Insurance, Vehicle Insurance), your education mark sheets (10th, and 12th grades, and graduation degrees), Property Documents, parents’ important documents on which you may be a nominee, etc.
Important Conversations
Irrespective of whether you are already married or about to get married, it is important to have relevant conversations related to finances with your spouse (or to-be spouse). These may sound like delicate issues to you, but they must be truthfully spoken about at the onset so there is no false expectation or assumption that may cause issues later.
You may want to discuss your own liabilities (if any) and those of your spouse (if any) and understand how these will be handled from a financial standpoint. The second thing you may want to discuss as it relates to finances is the financial responsibility you or your spouse may carry in the marriage.
Your Financial Checklist – Your Financial Friend
Having a checklist to become financially independent puts you on the right track to reach your goal of achieving financial strength. Through financial strength, you can develop the confidence to save and invest with discipline, knowing that you will ultimately be a winner financially. While you may be a confident woman already, financial independence will only boost that confidence further and give you a sense of well-being and positivity in most of your ongoing decisions related to finances. Being financially independent makes you a strong person, able to make your own choices and cope with any emergencies that life has in store for you.
