We celebrated our 75th Independence Day and may this Independence Day bring true independence & financial freedom to every Indian.
Freedom can be translated into numerous dimensions which can mean different for everyone. For a few it can mean going out in a park without a leash around their neck, for few it can mean freedom from judgement because of gender; for few it means the liberty to buy whatever they want, not because they can’t afford it, but because they don’t have to ask someone else to buy it for them. This Independence Day apart from celebrating sovereignty and freedom of our country let’s also celebrate economic independence.
To be truly free one has to be economically independent. Economic independence provides a person with confidence and security. Are women equally financially independent as men in our country? I think we know the answer however as a society we may not want to acknowledge. Women in general has less access to financial freedom and that needs to be changed. This may be changing slowly however it should change at a faster pace. Despite patriarchy, poor access to financial services and financial freedom and pressure of being a mother, women have stood out beating all the odds. They believed in in their ideas, became financially independent and provide employment to others (men and women).
Vandana Luthra is the founder of VLCC. When Vandana Luthra thought about the idea of beauty and wellness as a business model, she had to endure criticism, satire and sarcasm. It was an alien concept back in the 1980s. She started with a small wellness centre with a bank loan in 1989 in New Delhi. Since her idea was ahead of time, she faced resistance and had to convince doctors about the concept of wellness. Responsibilities tripled because she was a mom who was struggling to create an identity in a male-dominated world. She held onto her idea; and her trust landed her a Padma Shri award in 2013. VLCC has outreach in 11 countries in Southeast Asia, East Africa and the GCC region. The company has a manufacturing unit in Singapore and India. She was later included in the 33 most powerful Indian female entrepreneurs list by Fortune India. She is appointed as the chairperson of the beauty and wellness sector skill Council by the government.
Allyson Felix apart from being one of the most decorated track and field athletes is also a mother. To talk about her triumphs and trophies she has 27 gold medals, eight silver medals and five bronze medals. Despite these achievements when she was pregnant with her first child Nike reduced the price of the contract by 70%. Nike told her to know her place and just run. She started her brand of running shoes called Saysh, the tagline of the brand is “I know my place “. When Felix came back from Tokyo Olympics, she had 11 medals adorning her neck. She in an interview said that she feels proud for knowing her worth and her place. Competing in Olympics with her own brand was the biggest moment of her life. Her determination forced Nike to change its maternity policies for good.
Shakeela Shaikh from Kolkata. As of now, she works as a homemaker and an artist, who is known globally for collage art. Her artwork has decorated walls of homes across India, the US and Europe. But life wasn’t very smooth for Shakeela, she was born in abject poverty and was the youngest of six siblings. Her father was a vegetable vendor with a meagre income, at times the family slept with empty stomach. She was married off to a man who was 15 years older than her; already married, at the age of 12. Shakeela‘s life changed when she met a retired government employee and a passionate artist Baldev Raj Panesar. Her first collage – a depiction of vegetables and fruits amazed her father, husband, Panesar and fellow artists. Motivated by her close ones, in 1990 she exhibited her paintings for the first time and earned Rs.70,000. There was no going back then, Shakeela recognized her skill and believed that her skills will pull her out of the trap; guess what- it did!
Priya Paul who is chairperson of Park hotels lost her father and her younger brother within a short span of two years. But now that her dad was gone at the age of 23, she had to learn to trust her own decisions. While working she realized loopholes and renovated the hotels which created a revolution in the hospitality industry in India. She also introduced out-of-the-box concepts like boutique hotels, amusing corners for guests to hang out, themed lounges and in-vogue restaurants. Her success now encompasses six hotels in Kolkata, Chennai, Bangalore, New Delhi, Hyderabad and Visakhapatnam. She received the Padma Shri award from the Indian government in 2012. Apart from being a successful entrepreneur, she is also a mother.
There are many such examples where women fought against all the odds and became truly successful in their way & financially independent.
How women can be financially independent in 5 simple steps?
1. A person cannot hit a target if he has no clue what the target looks like. Knowing our finances plays a big role here. One needs to have knowledge of debt, fixed monthly payment, expenses and other numbers that rule our lifestyle. It’s easy if we know the amount of loan we have like car loan, hone loan, credit card loan etc. Apart from that a person needs to know about his savings, investments and sources of income. Keeping track of these numbers helps us achieve financial freedom.
2. After knowing our finances, we need to set goals and a plan that directs its achievement. Of course, these plans will be rough draft because no one knows what future may bring. The plan has to encompass long-term and short-term goals like children’s education fund, fund for next three years etc. Generally, people put 20% of their income into savings. Whenever you are in doubt follow the 45/35/20 saving rule rule. It means 45% of the income is for monthly bills, 35% is for spending on things that you love and 20% is for savings. Try inculcating inflation into your financial plans to make them foolproof.
3. Everyone hates one thing – debts. Hence paying off debts quickly is a smart strategy. Apart from draining money, debts also drain you psychologically and are chains of financial independence. To reduce debts make sure you think twice before swiping your credit card on the machine, or buying an item on loan.
4. We never know what future may bring (Covid 19) hence creating an emergency fund is essential. Setting aside six months of living expenses in an emergency fund is important because it can be easily converted into cash when needed. Whenever choosing investments for emergency fund make sure that they are highly liquid and provide good returns. Emergency fund is of no use if you cannot withdraw it when needed.
5. Keep investing systematically and logically your hard earned money. Financial independence is not only about having a fat wad of cash in your wallet or a big number in your bank account. It’s also about making good decisions in times of trouble. Asking qualified investment advisers for advice never hurts.
Every successful women and men have one attribute in common. It is the intrinsic belief that their idea will be a hit despite poor support. This Independence Day apart from celebrating freedom and financially free women let’s celebrate by creating an environment that will help women to become independent in their financial journey.
Together stronger!