Financial Planning for Working Women & Entrepreneurs
The best indicator of an economy’s progress is measuring the percentage of women entering the workforce. According to a survey conducted by DD India, the Female Labor Force Participation Rate (LFPR) rose from 23% in 2017 to 40% in 2025 — source. Not just that, more than 3.69 crore registered micro, small, and medium enterprises (MSMEs) are women-owned, i.e., 38% of all registrations — source.
This just means one thing: India is progressing at its core, but for the real change to be visible in the economy, it may take a bit longer than expected. One reason for this could be the low number of women investors in the stock market. At present, only 25% of women invest in the financial markets — source.
We need these two numbers to be in perfect sync: if 40% of women are in the workforce, then 40% of all investors should be women. The nation will automatically develop when this additional 15% of women start investing. And for that to happen, we need a broader reach for financial awareness.
Women need extra support in financial planning. Unlike men, who have time to watch YouTube videos about wealth, women rarely have spare time. If they are mothers, forget the word "time" from their dictionary.
That is why every woman should know these six steps in financial planning. Once you learn and follow these, you can build a successful career along with a successful family.
Step 1: Expenses + Loans at 70% of your monthly Income.
Once you note down your monthly income, multiply it by 0.7 to get this number. This should be the maximum you should spend on rentals, groceries, travel, and EMIs. If the current number is above 70%, you should either seek better income sources or reduce your expenses/debt.
For example, if your monthly income is 1,00,000, then the Step1 amount = 0.7 x 100000 = 70,000.
Step 2: Emergency Funds at 3x of Step 1.
You need to have at least 3 times your monthly expenses plus your loan amount (Step1) in your emergency fund. If you are an entrepreneur, target 6x Step for your emergency fund.
For example, your Step 1 amount was 70,000, so your emergency fund should be 3 x 70000 = 2,10,000.
Get Balachandran Viswaram’s stories in your inbox
Join Medium for free to get updates from this writer.
Step 3: Your retirement corpus should be 200x your monthly income.
The portfolio you need to build for retirement should be 200 times your monthly income. This ensures that you have the balance needed to achieve financial independence.
For example, if your monthly income is 1,00,000, your retirement corpus should be 200 x 100000 = 2 crores.
Step 4: Invest 20% of your income today.
To build the retirement corpus required in step 3, you need to invest 20% of your income for 20 years. A normal SIP at 13% ROI would yield you a corpus of 2.26 crores in 20 years. SIP can be made for equity mutual funds or direct stock purchases.
If you can, do a 10% Step-Up SIP to keep up with inflation. This would likely generate a corpus of 4.38 crores in 20 years.
Step 5: Withdraw 1/200 (0.5%) of your corpus each month.
The corpus you created in step 4 is more than enough to cover your expenses in retirement. If your retirement corpus is 2 crores, then you can withdraw 1 lakh a month.
Step 6: Protect everything else with Insurance
Of your monthly income, 70% goes to expenses and 20% to investing. Of the remaining 10%, you should choose to protect the assets you have created with insurance.
If you are in your 30s, term insurance for you and your spouse, medical insurance for your family, and car insurance should not exceed 6-8% of your monthly income.
I will be talking about these 6 steps for financial planning as part of the Royal Queen Wealth Summit, organized by the Rotary Club of Cochin Royals. It's exclusive for women, and there are only a limited number of seats. It’s on the 14th of November 2026, at St. Teresa’s College, Ernakulam, from 2 pm to 5 pm. For registration, fill out this form at: https://forms.gle/JhghoEVkBt3pa6JXA
Or scan this QR code to register.
