The year 2021 began with a resounding crash as glass ceilings were shattered by strong and determined women across the world. Kamala Harris made history when she became the first woman to become Vice President of the United States. In the wake of this tremendous victory, Whitney Wolfe Herd, founder and CEO of the dating app Bumble, became the youngest self-made billionaire woman after her company went public.


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Obviously, nothing prevents women today from achieving their dreams and advancing to the highest levels of their respective fields. For millennial women, the world is their oyster. Supported by education, millennial women are well positioned to take advantage of the many opportunities that may now be presented to them. However, when you go out and break glass ceilings, it is important that you understand that in addition to launching a great career, you also need to plan your finances wisely. You are already creating wealth. You must now manage, develop and preserve your wealth.

Manage your finances like a champion!

As a millennial woman, you are probably just entering the workforce or have a twelve to fifteen year career. So, given your longer investment horizon, you may want to consider investing at least 50% of your portfolio in equities. Remember that stocks are a driver of long-term growth. In the short term, stocks can be volatile and generate low to negative returns. However, in the long run, they tend to perform well. It can help you save for big goals like buying a home or starting a retirement fund. At the same time, you need to make sure that your money is well protected and able to meet your unique needs. So, you should also consider investing some of your money in debt mutual funds and government programs and specified investment plans. By taking a balanced approach, you can grow and protect your money.

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Below are some basic rules you should follow as you embark on your financial planning journey.

  • You’ve done the hard part to make money, now is the time to protect and grow that money.
  • Your savings and investment journey should begin as soon as you begin your earning journey.
  • You have to be smart when it comes to budgeting. Your mantra should always be to save more, spend less, and be honest about your spending habits.
  • Don’t rely on credit cards to meet discretionary spending or fund short-term goals.
  • Don’t take on big debt – that is, big loans at the start of your career.
  • If you’ve taken out a loan, make sure you always have at least six months of EMI set aside in a safe investment vehicle.
  • The key to the success of your wealth management plan is diversification – this way your portfolio will never go out of style.
  • Start a systematic investment plan (SIP) and invest in it for the long term – a SIP is an investment vehicle that allows you to invest a fixed amount in an investment of your choice and at intervals that work best for you . You can start small and increase the amount of investment over time.
  • Buy an insurance policy that can help mitigate the risk of unforeseen circumstances.
  • Be disciplined and follow your investment plan wisely.
  • A DIY approach may not always work when it comes to wealth management.
  • Most importantly, don’t be afraid to have conversations about money and investing.

You are a unique person with your own requirements. You need to make sure that your financial plan is just as unique and holistically addresses your needs. The best part is that today you also have access to a wide range of digital solutions and tools that can be leveraged to better understand and plan your finances. These tools include SIP calculators, budgeting apps, and financial planning apps. Undoubtedly, it’s hard to ignore the thrill of instant gratification and argue with the logic of You Only Live Once (YOLO). However, to secure your future, continue living on your own terms and consider starting your wealth planning journey today.

Read also : Understanding the financial needs of millennials

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