You're not bad with money - You've just been told you are

There are times at work when you pretend to be busy (to not get actually busy), scrolling through social media with the same intensity as if you're crafting groundbreaking insights. At such times, I often stumble upon one such mind-blowing insight, which you've most probably encountered before - 'women 🍵'.

If you haven't come across this before (congratulations), it's an all-purpose insult used to blame, belittle, or mock women for just about anything.
Bad breakup? 'Women 🍵'
Talking about a negative experience? 'Women 🍵'
Lost her money in the stock market? 'Women 🍵'

The internet is filled with these casual, almost comedic jabs that subtly reinforce harmful stereotypes. It's easy to dismiss them as jokes, but repeated enough, they become a narrative that shapes how society views the gender as a whole. One such narrative is about money. The idea that women are "too emotional" or "bad with finances" is embedded so deeply that it keeps women from taking charge of their investments.

The ironic truth is that research shows that women are often more disciplined and consistent investors. The problem isn't that women are bad at investing, it's just that the narrative is rigged against us.

This article aims to challenge that stereotype by providing women with practical tools and guidance to take control of their financial futures without being held back by outdated biases. Let's get started.

Suggested read: The cost of playing it safe: Why women need to invest

Investing mythbuster: Cutting through the nonsense

Investing has always carried an air of intimidation, especially for women who are often conditioned to believe it's not "their thing." The problem isn't just the lack of financial literacy, it's the persistence of myths that reinforce hesitation and fear. Let's break down some of these misconceptions about investing and see why they don't hold up to reality.

Myth 1: Investing is too risky

Reality: Not investing is riskier. As years pass, inflation will persist, but the value of your savings won't. There are quotes like 'time waits for no man' and 'time is money' that we casually throw around everyday. It's now time to actually listen to them. Instead of letting your savings sit idle and erode, invest your savings, diversify your portfolio, and stay invested.

Myth 2: You need a lot of money to invest

Reality: If asked to choose between reading a rags to riches story or a riches to riches story, which one would you choose? Probably the former. These stories are inspiring, motivating; they give you hope, and make you feel better about the world in general. In India, the stock market allows investments as low as Rs 500 in mutual funds. The goal isn't to start big; it's to stay consistent. Systematic Investment Plans (SIPs) make it easy to build wealth bit-by-bit. Try making your story a reality.

Myth 3: You need to be a finance expert

Reality: You don't have to be Warren Buffett to start investing. Mutual funds are professionally managed, making them beginner-friendly and accessible to everyone.

Myth 4: You will lose all your money

Reality: Yes, investments can go up and down, but long-term investments - especially in diversified mutual funds - have historically shown steady growth. Choosing the right fund and staying patient makes all the difference.

Suggested watch: Women's Day Special: Investing myths that hold women back

Step 1: Build your financial safety net first

Before jumping headfirst into investing, it's crucial to build a safety net. Think of it as your financial parachute - if life pushes you out of a plane, you want to make sure you don't hit the ground at 100 kmph.

The biggest fear when it comes to investing is losing money when you need it most. Imagine losing your job tomorrow. Would you be okay for the next few months without immediately liquidating your long-term investments? If the thought makes your stomach flip, it's time to build that buffer.

An emergency fund acts as your financial cushion for unexpected expenses - like medical emergencies, job loss, etc. It's the boring but necessary foundation that keeps you stable when life throws you off balance.

How much should you save?

We recommend setting aside 3-6 months of essential expenses in an emergency fund. The exact amount depends on your lifestyle, financial obligations, and risk tolerance.

Where to keep your emergency fund?

Not in stocks. Not in fancy, high-risk funds. Not under your mattress. Your emergency fund should be:

• Liquid and accessible: Use a fixed deposit or a liquid mutual fund.
• Safe from volatility: This isn't the money you take chances with.

Once that's set up, we can start talking about the fun part - actually growing your money.

Suggested read: Emergency fund: Why it's crucial to have one

Step 2: Start small with SIPs (systematic investment plans)

Once your financial safety net is in place, it's time to take your first step towards wealth creation.

When you hear the word "investing," your mind might conjure up images of Wall Street moguls throwing cash around like it's Monopoly money. However, the truth is, investing doesn't have to be intimidating or expensive. You don't need lakhs to get started. All you need is a plan - a Systematic Investment Plan.

Think of SIPs as your financial gym membership, except this one doesn't guilt-trip you if you miss a session. You invest a small, fixed amount every month into a mutual fund of your choice. It's automatic, consistent, and painless.

Why SIPs are the smartest first step

Investing doesn't have to feel like a financial marathon. SIPs make it easy and stress-free by letting you invest small amounts regularly - no drama, no heart palpitations.

• Affordability: You can start with as little as Rs 500 per month.
  
• Consistency: Automate your investments so you never "forget" to save. It's like setting up a subscription to wealth.
  
• Rupee cost averaging: SIPs buy more units when prices are low and fewer when they're high, averaging out your costs over time. Basically, a built-in safety net.
  
• Compounding magic: The earlier you start, the more your money grows. Small amounts today can snowball into significant wealth over the years.

Imagine investing just Rs 5,000 per month at 11 per cent annual returns. In 20 years, that could become around Rs 41 lakh - all while you sip your morning coffee guilt-free.

Suggested read: SIP: The smartest way to build wealth

Step 3: Set clear, realistic goals

Investing without a goal is like cooking without a recipe - you might end up with a masterpiece, or you might end up with charcoal. Setting clear financial goals is essential to knowing why you're investing and how to measure your progress. Plus, goals keep you motivated when the market gets moody.

Why goal setting matters

Goals give your investments purpose. Instead of vaguely hoping for "more money," you're working toward something tangible - a house, retirement, your dream vacation, or financial independence.

Your goals should be:

• Specific: Know exactly what you're saving for.
  
• Measurable: Put a number on it - like Rs 10 lakh for a down payment.
  
• Achievable: Don't expect a Rs 1 crore portfolio in three years with minimal investment.
  
• Relevant: The goal should actually matter to you.
  
• Time-bound: Set a clear deadline to stay focused.

Suggested read: A simple financial framework to build wealth

Step 4: Keep learning and stay consistent

Investing is somewhat like adopting a plant. You can't just water it once, walk away, and hope it turns into a jungle paradise. You need to nurture it, check on it occasionally, and make sure it's not wilting in the corner from sheer neglect.

Financial knowledge = financial confidence

Don't fall into the trap of thinking you're "just not good with money." Follow credible sources, learn from people who know what they're doing, and join communities where you can ask questions without feeling judged. The more you know, the less you'll fear.

Consistency beats timing

Don't stress about timing the market. Instead, focus on consistently adding to your portfolio. Time in the market always wins over trying to predict highs and lows.

Annual portfolio check-up

Just like a wardrobe purge, go through your portfolio once a year. See what's working, ditch what isn't, and make space for what fits your goals now.

Key takeaway

Women are already natural planners, multi-taskers, and problem solvers. These are skills that make for brilliant investors. The power to secure your future is already in your hands - just grab it. How, you ask? Start by building your safety net, setting clear goals, and choosing your first mutual fund. Check out our guides to get started.

A simple financial framework to build wealth
How to choose the right mutual fund?
Your first fund: Stop waiting for the "perfect" investment

This article was originally published on March 25, 2025.