Did you know that less than half of women are currently investing? According to a survey done by NerdWallet, 48% of women are investing, in comparison to the 66% of men who invest.
Why are there more men than women investing?
And what can we do to change that?
Why Should Women Invest
There are so many reasons that women should invest.
The most important reason is financial equity.
We are all acutely aware of the wage gap between men and women and how this affects us mentally. Women also have the pink tax to consider (unfair, but I digress).
Investing is one way that women can bridge the gap and build their own wealth.
With that in mind, here are some tips for you as you work to invest in your own wealth!
Tips For Investing
Replace Fear of Unknown with Knowledge
In the conversations I’ve had with other women the overwhelming feeling when it comes to investing is fear.
We are fearful of investing in the wrong thing.
We are fearful of making a giant financial mistake.
We are fearful of looking like we don’t know what we are doing.
But instead of being fearful, what if we had knowledge?
Do your research! Take the time to learn about the ins and outs of investing. Become knowledgeable for yourself so you feel confident in your decisions.
Take Time to Research, Then Act with Confidence
Once you feel you’ve done the research, act with confidence!
Decide where and how you want to invest your money and just do it.
Be confident in your decisions!
The sooner you begin, the better off you’ll be in the long run.
Set Clear Goals
What are your financial goals?
Determine those before beginning your investment journey.
A simple way to determine goals is to use the word S.M.A.R.T.
Make goals that are:
A note on time-based: remember that all investments come with the inevitable ebb and flow of the market. Your time-based portion of your goals should be about when you invest and how much you invest at that time, not necessarily how much your ROI should be at a given point in time. We don’t have control of the market (but wouldn’t that be nice?)
Find Someone You Trust
I know this could seem to contradict what I wrote earlier about becoming knowledgeable.
You should have knowledge on your own. And you should find a financial advisor that you trust that you can bounce ideas off of and get tough love from.
I’m not saying this person has to be a female, but there is something about being a woman who invests that only other women who are investing can understand and empathize with.
Whether you find a female financial advisor or not, search for a person who you trust to help you make decisions.
One of the easiest ways to start your investment journey is actually in your workplace.
Does your employer offer a retirement plan like a 401k or a simple IRA?
Look into it! You might find that you can be investing already.
Diversify Your Investments
Have you ever heard the phrase “don’t put all your eggs in one basket?”
That advice applies to investments too!
You don’t want to invest all your money in one place because then if (when) that investment drops in value, so does all of the cash you put into it.
Instead, take the time to diversify your investment portfolio.
Some ways to diversify your investment portfolio is to invest in things like:
- Hedge funds
- Private equity
- Or my favorite – real estate!
Be In It For the Long Haul
Investing is a long game. Especially now with the market at all-time highs, it can be really tempting to pull investments now.
Don’t do it!
We can’t assume that we will get an immediate return on our investments.
You shouldn’t think you’ve made a mistake if the market doesn’t go in your favor.
INSTEAD, give your investments time to handle the ups and downs of the market.
And like I mentioned in my article about Investing in Real Estate Young, the sooner your start the better!
Do It For Yourself!
Notice I did not say Do It Yourself.
You should find someone who is an expert that you trust. But don’t let others make your choices for you. Invest for yourself. You’ll be happy you did!
Currently, women are less likely to invest their wealth than men are.
Let’s change that!
Do you have questions about investing? I’d love to chat with you!