Vijaylakshmi Saxena, CFO of Educate Girls, emphasises that effective financial planning can transform not only individual lives but also entire communities.
Drawing on her expertise in nonprofit finance, Saxena shares invaluable insights into the role of financial planning in driving social change.
Lessons from nonprofit finance
Nonprofit organisations operate with a mission-first approach, focusing on maximizing social impact rather than revenue. Saxena notes, “In a nonprofit, the goal is to maximize social impact, not revenue.”
This perspective serves as a reminder that financial planning should align with one’s broader life goals, whether that’s achieving personal milestones or contributing to societal well-being.
However, nonprofit finance also comes with challenges, particularly around funding. “Most nonprofits rely on institutional funding and CSR grants, which can be volatile,” Saxena explains.
This unpredictability mirrors the financial hurdles many women face, from inconsistent income streams to unexpected expenses.
To navigate these uncertainties, Saxena stresses the importance of responsible financial planning.
Compliance with regulatory standards is another lesson individuals can draw from nonprofit finance. Just as nonprofits must adhere to CSR and FCRA requirements, individuals need to stay updated on tax regulations, retirement planning norms, and investment guidelines to optimize their financial health.
Education as a catalyst for financial empowerment
Saxena sees a strong link between education and financial inclusion. “Education empowers girls with skills for informed financial decisions,” she explains.
Educating women equips them to make better choices about saving, investing, and managing debt, which can lead to a more secure financial future.
Breaking barriers in leadership
Financial planning is also crucial for women in leadership roles. Saxena advocates for more women in decision-making positions, stating, “Women should be seen as equal partners in the workforce.”
Equitable opportunities and representation in leadership are essential for addressing gender disparities in wealth and financial security.
Saxena’s call to action resonates deeply: young women must be empowered to step into leadership roles, take charge of their finances, and inspire others to do the same.
Practical financial planning tips for women
Drawing from Saxena’s insights, here are some tips for women to strengthen their financial health:
- Define your short-term and long-term financial objectives, whether it’s buying a home, starting a business, or saving for retirement.
- Allocate a portion of your income to a fund that covers at least 3–6 months of living expenses.
- Diversify your investments across instruments like mutual funds, stocks, and fixed deposits to balance risk and returns.
- Take courses or seek mentorship to improve your understanding of financial concepts and strategies.
- Join women-focused financial communities or networks to share experiences and gain advice.
