Personal Finance for the Millennial Woman

Millennials are a generational cohort that are unique in their outlook to life, preferences, opinions, and even purchase behavior. Globally, their formative experiences have had unique influences that stand them apart from any other generational cohort till date. The Millennial woman, thus, is a very distinct persona that needs to be understood in the context of personal finance and financial empowerment.


Holding forth on where the Millennial woman stands today and on her relationship with personal finance at the recently concluded Femvest 2021 virtual summit on women’s financial empowerment, Mr.Lav Kumar, Zonal Head West - Retail Sales at LIC Mutual Fund, spoke on ‘Personal Finance for the Millennial Woman'


From the Vedas to the Millennials


Any woman born between 1981-1996 is a millennial woman and they belong to Generation Y. One thing which is very special and unique and is found out by various surveys is that Millennial men and women are more loyal to the organization or society where they work or stay. Millennial men and women are more adaptive and are more loyal to their working organization and values.


It is generally said and even found out by various surveys that women are very risk averse. It may or may not be true but there are many psychological reasons behind it. In the medieval ages, our Vedas talked about 'streedhan'. This concept of 'streedhan' got deformed into dowry system. So the concept of streedhan has been there in the system for a very long time.


"Things are changing for better now and gradually we are heading towards a society where women are no longer looked down," observed Mr. Lav.


The stages of saving and investing


"The biggest mistake is not learning the habit of saving properly,” says globally renowned investor Warren Buffet. The habit of investing and saving should be inculcated from day one. It should be in fact a part of the student's curriculum.


"The first stage of handling personal finance for the Millennial woman is to start early and to learn the habit of saving and investing. When you are  taking charge of your own personal finances, it is important to make those calculated and informed decisions," stated Mr. Lav.


"The second stage post-marriage is the most crucial stage. Here, you need to figure out where can you actually make investments and what all goals you need to achieve," continued Mr. Lav. He believes that while you are planning for your investments, you need to be prepared for any kind of eventuality. Learn new skills and make those informed decisions because then you know exactly what is the risk and what is the return.


Six thumb rules for wealth creation


1. Keep at least 10℅ of your income aside.


2. Invest those savings, so that it grows.


3.Avoid debt; the more you avoid debt the better it is.


4.Don't speculate to get fringe benefits.


5.Invest in yourself, gain knowledge, and learn new skills.


6.Safeguard your future and safeguard your fortune.


It is no longer gender specific about what a woman can do and not do. Choosing a good advisor and good platform is very essential before you want to make investments. "A lot of people say that  Millennials are more inclined towards quant model and when the markets are going up it is very easy to make money. But when we analyzed the data we saw more of our female investors entering the Mutual funds than entering stock market directly. Women are not risk averse; they just take calculated risks," said Mr. Lav.


Mr. Lav concluded his talk with this quote:


Millennial women are smart enough to decipher what is good for them and to take those decisions on their own.