Why women must build a ‘power fund’ early to secure their financial future

Unfortunately, this delay often affects women more severely than men. A major disruptor? Marriage, a life transition that can dramatically alter a woman’s financial trajectory.

Here are a few real-life cases (names changed) that illustrate the lasting consequences:

The illusion of financial security

Kashvi quit her job soon after marriage, trusting in the apparent affluence of her spouse’s family.

But the rich lifestyle was a façade. Her husband had no stable career or savings habit, and the household relied heavily on the pension of a soon-to-retire government executive—her father-in-law.

With a second baby on the way and ailing in-laws to care for, resuming her career was out of the question. Her personal savings had already been spent on wedding costs and helping her own family, leaving her financially exposed.

Starting over at 40 after divorce

Sakshi, married into a conservative household, returned to her father’s home with her six-month-old child after a difficult marriage and divorce.

With her father’s support, she rejoined the workforce, but starting over at 40 meant battling lawyer fees, loan repayments, and a complete lack of financial assets.

The one-time alimony she received was barely enough for her son’s future education. To complicate matters, her brother, living in the same house, grew insecure, fearing she might claim a share in their father’s property. She is now considering moving out and renting, adding strain to her already tight finances.

The confidence gap

Punita moved to the US a year after marriage, leaving her job to support her husband’s career. Six years later, she returned to India with a child and found herself out of the workforce for even longer while resettling.

Now 40, she struggles to decide whether to return to her original profession or start afresh. The long hiatus has eroded her confidence, making it harder to apply for jobs, negotiate pay, or aim high. She worries about settling for roles and salaries far below her potential.

While the details differ, these stories share common threads: multiple career breaks, loss of financial identity, and the absence of a personal financial cushion. Other contributing factors include temporary sabbaticals that turn permanent, divorce and legal battles, caregiving duties, relocations for a spouse’s career, and lack of support systems.

These disruptions don’t just cut into a woman’s earning potential, they also take an emotional toll, leading to self-doubt, low self-esteem, confusion, and frustration. It’s a conversation that needs to happen more often.

The solution: Build a financial foundation early

During life transitions, a dedicated savings and investment corpus can be a woman’s most valuable asset. It offers emotional security, the freedom to walk away from unfavourable circumstances, the confidence to restart, and a launchpad for future goals, whether for children’s education, home ownership, or career pivots.

The early working years are a golden window for young women to lay this foundation. With fewer responsibilities and greater capacity to save, it’s the ideal time to create a long-term “power kitty.”

Here’s how to make the most of it:

Start from your first paycheque. Aim to invest 60–70% of your income in the early years, before financial commitments rise.

Focus on growth assets. Allocate 80% of savings to equities, which can outpace inflation over time. Use a monthly SIP to automate and stay disciplined. Increase your SIPs annually by a set percentage or amount as your income grows.

Harness compounding. For example, a ₹10,000 SIP starting at age 23 with a 10% annual step-up and a 10% post-tax return will grow to approximately ₹30 lakh by age 33. Left untouched, this could reach around ₹48 lakh by age 38, even without further investment.

Keep it untouchable. Don’t dip into this corpus for lifestyle spends such as weddings, travel, or shopping. Let it grow undisturbed.

This “power fund” should be non-negotiable, self-owned, and sacrosanct.

As American writer and politician Clare Boothe Luce once said: “A woman’s best protection is a little money of her own.”

Roshni Nayak is a Sebi-registered investment advisor and founder of GoalBridge.