Review: Be Financially Smart by Nita Menezes

A comprehensive guide to the world of finance that provides concrete strategies demystified through real-life stories, Be Financially Smart emphasises the pressing need for financial literacy. According to a survey report by Standard & Poor’s, despite comprising 20% of the world’s population, only 27% of India’s populace is financially literate and a staggering 80% of women grapple with financial illiteracy.

Right through her three-decade long career, Menezes has found women taking a back seat when it comes to financial decisions. The reasons for this are usually related to fear, lack of interest or the fact that it is considered taboo for women to talk about money in their family. However, the rise in the number of unmarried and divorced women means that financial independence is imperative. “Let’s collectively change the narrative, fostering a culture where financial conversations are not just welcomed but celebrated,” she writes.

Menezes begins with her own example of receiving a yellow hair dryer back in 1992 as an additional incentive by an investment scheme that promised quick and high returns. Enticed by this bonus, she invested her hard-earned money, only to realise later that it was a scam. Ironically, it was a lack of awareness which taught Menezes her first important life lesson. The incident also proved to be a personal trigger for her to acquire the necessary knowledge and skills to take charge of her financial life. She goes onto a share another powerful example: her friend, who, though financially secure, tragically lost her husband during Covid while simultaneously being laid off from her workplace. “Life is unpredictable, and financial challenges can arise unexpectedly. Whether it’s job loss, illness or unforeseen circumstances, being prepared is the key,” Menezes cautions.

The author focuses on certain unique challenges that women face throughout their financial lives, such as having a smaller income, taking career breaks and often outliving men. “One of the key principles of life planning is aligning financial decisions with personal values,” she writes. She offers the SMART Money Management Accounting System, a dynamic approach that adapts to one’s financial goals and lifestyle. After opening a bank account and other initial processes, Menezes recommends setting a budget and tracking one’s expenses by means of a cash flow statement. Next, she advises having an emergency fund to cover unforeseen and urgent expenses.

“Through the lens of significant events like demonetisation and the recent global pandemic, the resilience and saving prowess of women has emerged clearly,” she writes. She then explains how to select appropriate investment plans that align with one’s goals as well as diversifying one’s portfolio by allocating assets across a spectrum of options, to mitigate risk and optimise returns. “The trick is to match the vehicle with your destination. If you’re looking for steady growth, mutual funds or SIPs could be your companions. If you’re comfortable with risks and want potentially higher returns, stocks might be your route of choice,” she guides.

Menezes also underscores the importance of investing money early, even if with a small amount. “The sooner you start investing, the more time your money has to grow,” she writes. Further, she urges her readers to consider enlisting the assistance of a qualified financial coach or mentor to impart insights and guidance. She advocates continuous learning in the journey to ensure adaptability in managing finances. Further, she explains the importance of having health and life insurance, and the benefits of getting them at a younger, healthier age. “Accidents, illnesses and untimely deaths don’t discriminate – they affect the unsuspecting and cautious alike,” she warns.

She underlines the significance of nominations and wills, which ensure that one’s assets seamlessly transition to the right hands, avoiding legal entanglements and delays. In the book’s last section, she alerts her readers about groupthink and ‘finfluencers’, “dishing out financial advice like confetti” on social media. She also highlights how to recognise financial abuse and manipulation as well as how to overcome it.

Along the way, the author stresses on the need to integrate financial literacy into the school and college curriculum. She encourages women to engage their children in discussions about money, and the importance of saving and investing early. “By equipping individuals with the necessary financial knowledge and tools from an early age, the transition from their learning years into their earning years can happen seamlessly giving them a great head start into their financial lives,” she says. In a similar vein, she explains how domestic staff can be empowered financially by extending help and counselling to them from time to time.

Menezes breaks the barriers surrounding several complicated concepts in an organised, step-by-step manner, making this book a helpful resource, not just for women, but anyone trying to navigate the complex world of finance and money. “Let’s empower ourselves, let’s be financially smart women and let’s create a future where we’re in control of our financial destinies,” she concludes.

A freelance writer based in New Delhi, Neha Kirpal writes primarily on books, music, films, theatre and travel.