5 Reasons Why Financial Independence is Important for Women

Introduction

Like Bob Dylan once sang, “the times they have changed.” Women have shattered every barrier and glass ceiling and are now active in every sphere of life. They are completing their education, joining and rising to high positions in the workforce, and even participating in politics.

However, even as women strive to succeed in society, it is important for every one of us to promote the financial independence of women. They must be able to depend upon themselves to earn a living, manage their money, etc. Only then will they be able to make their decisions completely independently and live their life.

What is Financial Independence?

Financial independence is the state of having income or wealth to be able to pay one’s living expenses for the foreseeable future without depending on others for money. 

There are many ways to be financially independent, each with its benefits and drawbacks. We’ll be discussing some of these approaches later in the article. 

Why is financial independence important for women?

Some of the benefits of being a financially independent woman are:

1. To deal with emergencies: Every family needs to be prepared for unexpected emergencies. Accidents can happen, someone can fall sick, the male partner can be laid off, etc. In such situations, if the woman is financially independent and has her source of income, it is easier for the family to cope with temporarily or permanently losing one source of income.
2. To keep up with inflation: With time, living costs have been steadily rising due to unchecked inflation. In such a scenario, households where the women are also active earners, can cope much better than households where only the men are earning. The more sources of income, the more comfortable a life the family can lead.
3. For better mental health and self-confidence: With financial independence comes a sense of security, responsibility, and self-confidence. This is better for your psychological well-being. Women who are not financially independent are dependent on their family members, be it their parents, husband, or someone else, for their security and comfort. They cannot do anything or fulfill any aspirations that their family does not approve of. If you’re financially independent, you can fulfill your dreams and aspirations yourself without having to take permission from anyone. This freedom and self-reliance will immeasurably boost your self-confidence.
4. To not be dependent on anyone else: Many women are in abusive relationships or households. They have to put up with mental and physical ill-treatment since they are not financially independent and rather rely on their abusers for money. Since they will not be able to make a living if they leave their family, they have to put up with the abuse. As such, women need to be financially independent so, if necessary, they can remove themselves from an abusive situation. Women often don’t leave abusive husbands because they worry about being able to raise their children. Financial independence will alleviate this worry as well. 
5. To be an ideal example: A strong, financially independent woman who can support her family by herself is a role model both to her children and to other women who her example will inspire. By being financially independent, a woman can prove to those around her that society’s gender biases can be overcome. Her children will be encouraged to be independent, strong, and self-sufficient when they grow up.

How can a woman be financially independent?

As we mentioned above, there are many ways for women to become financially independent. Some of the steps you should follow to achieve the goal of how to become financially independent women are:

1. Make saving a habit: When you first start earning, fix a certain portion of your salary that you will save, and stick to that plan. Figure out which of your expenses you can do without, e.g., cutting down on the electricity bill as much as possible, cooking yourself instead of eating out, etc. Resist the initial temptation to splurge even once in a while. Once you’ve formed the initial habit, it’ll be easy to adhere to that. 
2. Get an insurance policy: Get a health insurance policy immediately when you start working. Since healthcare costs are very high, any hospitalization in your family will impose a heavy burden on your finances, especially if you’re in the hospital and you have to stop working. Insurance can tide you over such an eventuality.
3. Keep track of your credit score: Ensure that your credit score is high so that if you ever need to, you can borrow money without running into any trouble. To do this, always pay your credit card bills and EMIs as soon as they are due. Taking a small personal loan can help build your credit score. Use an identity theft protection service to alert you to any changes in your credit score.
4. Diversify your investments: If you are investing in mutual funds etc., make sure to spread out your investments. One way to do this is to invest in hybrid funds like asset allocation funds. Since your investment is spread across different asset classes, other assets can make up the difference even if one performs poorly.
5. Keep track of your savings account: Your family members might want to have joint savings account with you. In that case, they can access your savings as well. To be completely financially independent, always have at least one savings account that you completely control, which only you are aware of and from which only you can withdraw money. This will ensure that you always have some funds to fall back on in an emergency.

Conclusion

In today’s world, financial independence for women is a must who wants to have complete control over their own life and decisions. To become financially independent, you need not pray for a windfall or master complicated financial concepts. You only need to apply some simple rules of financial management and spending, from which you can reap massive benefits.

Also, getting a well-paid job with a satisfactory role and responsibility is all it takes to become independent. If you are struggling for financial independence in this competitive world, check out Qween, which provides jobs to boost your economic, emotional stability, and security.