Your money needs to grow faster than inflation just to stay useful. That growth usually comes from a thoughtful mix of instruments: fixed deposits, debt or equity mutual funds, gold or even real estate, depending on your time horizon and comfort with risk. Over longer periods, these vehicles have historically delivered returns that outpace inflation.
But before we move to goals and instruments, a few warnings.
The cash trap. Many women keep large sums in cash, even when running businesses, to save on taxes. But cash cannot buy you security. Without money in formal accounts, you cannot build credit, buy assets, or plan for the future.
Ignorance is not bliss. Covid-19 underlined this fact brutally. A lawyer’s wife I knew was left scrambling when her husband was hospitalised. She did not know where the documents were, what accounts existed or how to access money. This blind faith can prove costly. Trust your partner, absolutely. But also know where things are. Emergencies do not wait for explanations.
Beware of “too good to be true.” If it is too good to be true, it is not true. No one can guarantee to double your money. If someone claims they can, it is a red flag. High returns...