Although women are generally financially disciplined, their reluctance to take the lead in managing finances often comes in the way of their financial independence.

Even educated and working women are often dependent on money matters. "Women should understand that personal finance is not rocket science. They can do it on their own, "says Preeti Zende, a SEBI-registered investment advisor and founder of ApnaDhan Financial Services.

Let's look at some ways that can help you take charge of your finances and achieve financial independence;

Create a contingency fund to cover career breaks

This is the first step in any individual's financial planning process, but the possibility of women taking more career breaks cannot be ruled out. The main rule is that you must set aside an amount equal to at least 6-12 months' worth of household expenses in a fixed deposit or liquid fund. However, women also generally have to take career breaks due to reasons such as pregnancy, childcare, and spouse's work. So, they should have a buffer fund of two or three years of their expenditure.

Have adequate health and life insurance.

In addition to an emergency fund, insurance is another tool for protecting yourself from a financial crisis. You need a good health insurance policy for your treatment. Look into creating an independent health plan, even if you're covered under corporate or family floater policies. "Look to start with a personal cover of at least Rs 25 lakh - a basic cover of Rs 7.5 lakh-10 lakh and a super top-up plan to take care of the rest. This combination will ensure a low premium outgo. If you have children, buy a term insurance cover worth at least 10-15 times your annual income to protect their financial future in your absence.

Contribute to household expenses, but also create your own assets

Women tend to focus on household expenses, ignoring the need to invest for themselves. "Usually, women take care of regular household expenses, while the husband's salary is transferred to the family's savings. However, while women can continue to contribute to their household budget, they must make a habit of using a portion of their income to create their own assets. Those who do not have financial knowledge can start with simple instruments like bank or post office recurring deposits and fixed deposits. Or you can start with an index equity mutual fund and a hybrid mutual fund.

Even if you are not knowledgeable in financial matters, you should try to learn the basics of money management. Take the time to learn about your money - explore savings accounts, investments, and budgeting tools. The more you know, the more empowered you will feel. Understanding your financial situation will give you benefit and control. This may take some time, but follow up.

Be aware of your family's finances and assets.

During COVID-19, in particular, many families lost their breadwinners and had no access to deposits or life insurance policy details. To avoid such crises, it is important to know about financial investments for your family and other assets.

Women should seek information and be aware of the investments made to secure the future of their families. Homemakers, in particular, should be aware of the nominations in investments made by their husbands. Women who have created their own assets should also ensure that their nominations are updated. Apart from nominations, it is also advisable to prepare a will to ensure that your investment is used for the welfare of the beneficiaries you choose.

Entrepreneurial ambitions? Plan in advance

Inspired by the success of many start-ups in India, many now want to walk that path. Many women are attracted to the freedom that comes with turning their passions into business ideas and becoming your own boss. Then, some want to upskill themselves after a career break or when they are trying to make a change in the job profile. If you also have such aspirations, set goals, make a financial plan and work towards creating a corpus.

Don't forget your retirement goals.

Finally, in the pursuit of family well-being and happiness, don't lose sight of your own retirement goal. Over the years, the social structure of the country has changed. It's not just men who need to plan for retirement - it's gender-neutral. Women are investing in their children's education. Regardless of your personal circumstances - whether you're married or single - you should start investing from scratch for your personal goals.

Invest in index, large-cap or diversified equity funds through systematic investment plans (SIPs) in a structured manner, and be prepared to weather any market volatility in the medium term. Although the estimate of the ideal retirement corpus depends on many factors, the main rule is that you should have at least 30 times your annual expenditure at the time of retirement.