While these numbers signal progress, the question remains—are women truly building wealth, or are these just the first steps toward financial independence?
Many Indian women still face two major roadblocks to wealth creation—saving enough and making tough investment decisions.
Juggling multiple responsibilities often makes it challenging for women to save effectively. However, just like any strong structure needs a solid foundation, wealth-building begins with disciplined saving. Relying on luck is not a strategy—consistent savings create financial security and long-term growth.
Art of smart saving
To save 25-40% of their income each month, women can start by tracking expenses and cutting down on unnecessary lifestyle costs.
Simple habits like uninstalling shopping apps, using the 48-hour rule (leaving items in the cart before purchasing), and scheduling no-spend days can make a significant difference. Maintaining a gratitude journal may also help shift focus from short-term gratification to long-term financial goals.
Another key obstacle to saving is debt. The easy availability of loans has led many to rely heavily on borrowing, making debt a way of life. High-cost loans—such as credit card debt, personal loans, and salary advances—can quickly erode financial stability.
Also read: From a modest start to 10x SIP investment: A 32-year-old’s journey
To regain control, individuals should prioritise a structured debt repayment plan and ensure that EMIs do not exceed 30% of their take-home income. This approach helps free up resources for savings.
Investing comes with its own set of challenges—where to invest, for how long, and how to navigate market volatility. The flood of financial advice on social media often adds to the confusion, making decision-making even harder.
However, social media should not be the go-to source for investment guidance. A recent analysis revealed that over 70% of stock recommendations from fifteen popular influencers (each with more than 5,00,000 subscribers) delivered negative returns between 2018 and 2022.
Instead, rely on credible and accountable sources such as personal finance columns in financial dailies or learning courses from reputed institutions.
When selecting investment products, keep these two essential checks in mind:
1. Regulation: Ensure the product is regulated. Unregulated options—such as gold savings schemes from jewellers, cryptocurrencies, and invoice discounting—lack standardised reporting and grievance redressal mechanisms, increasing investor risk.
2. Real returns: Always assess whether the post-expense, post-tax returns beat inflation. For instance, some insurance companies promote tax-free index funds, but their high fees result in significantly lower returns compared to regular index mutual funds. Focus on net returns rather than gross returns to make informed investment decisions.
A well-planned equity allocation is key to building long-term wealth, and a step-up SIP can further accelerate the process.
To accumulate ₹1 crore in 10 years, one would need to invest ₹87,000 per month in a SIP, assuming a 12% annual return. However, by increasing the SIP amount by 10% each year, this monthly investment can be reduced to ₹55,000. Alternatively, with the same ₹87,000 SIP and a 10% annual step-up, the corpus could grow to ₹2.80 crore instead of ₹1.80 crore in a regular SIP.
Power of staying invested
Equally important is the discipline to stay invested. Studies show that SIPs held for over seven years have little to no risk of loss compared to shorter durations of 3-5 years.
Yet, market volatility often leads investors to second-guess their decisions, and many, including women, may feel the urge to pause or stop their SIPs. However, moving in and out of the market can mean missing crucial high-growth periods, as market returns often come in spurts.
Accelerating wealth isn’t about having a large sum to start with—it’s about making smart, consistent, and informed financial decisions. By following these steps, women can take charge of their financial future, build lasting wealth, and create a positive impact on their families, communities, and beyond.
Go for it!
Also read: Caregivers to contributors: Can India unlock the full potential of its female workforce?
Happy Women’s Day!
Mrin Agarwal is the founder-director of Finsafe India.
