Did you know that 58% of women leave financial planning to their male partner? This includes investing and saving for the future. Perhaps women feel intimidated by finances or investing because they are traditionally male-dominated fields. While women are involved in the industry, most higher-level positions are held by men. Despite this, women have many skills, habits, and attitudes that can help them achieve their financial goals. What’s more, women live longer than men, and so have even more reason to secure their financial futures.
Women are equally capable or even better at investing than men! Here is your guide to investing and growing your savings.
In general, women tend to be more conservative when investing. We prefer to avoid too much risk. However, over the long term, women generally get better returns than men. This is also true when it comes to investment types. For example, opportunities in new industries such as cryptocurrency tend to be favored by men. Women, on the other hand, are warier and prefer to wait for opportunities with a longer track record. Some examples of investments with a successful track record include:
Plus, women are generally less impulsive than men. That means we are able to wait out ups and downs in the market more calmly. In addition, women are less likely to buy on a whim, which means our decisions are more likely to be well-thought-out.
In years past, women tended to not feel confident about their investment and finance knowledge in general. However, that’s changing. As women learn more and prioritize financial literacy, we’re building our confidence. You, too, can build your confidence by taking an online course, signing up for a class, or by hiring a financial planner who can walk you through the basics. For example, Samantha used to avoid budgeting. However, after taking my online course on Personal Finances, she discovered a few opportunities for saving. Now, she’s investing in bonds to ensure her money grows in the future.
Women tend to save more than men, even though women often experience a wage gap. So, if that describes you, keep up the good work and continue to feed your savings account. If you don’t have a habit of saving, try to start one. You can start by setting aside part of each paycheck in a savings account. Another important strategy is to stay away from debt. Fortunately, women are more likely to pay bills on time than men. So, keep paying your credit card bill off each month to avoid paying lots of interest fees.
Unfortunately, women are more likely than men to buy things they don’t need. Emotion-based purchases may fuel these decisions. For example, after a hard day, you may decide to treat yourself to a shopping spree. Or, you might be tempted to spend a bonus or tax return rather than invest it. But, you don’t have to succumb! There are strategies that can help. For example, wait 24 hours (or longer!) before making purchases to be sure that you really need and want the items. When online shopping, you can easily do that by leaving the items in your cart.
With these tips, you can start growing your savings and building your investments. If you’re considering hiring a financial planner to help you, make sure that they can see the feminine side of your finances. It’s a big bonus if your financial advisor knows what it’s like to be a woman and shares a woman’s unique financial perspective.
Are you ready to transform your financial well-being through investment? Get in touch with Elaine King today!