Let us face the facts; when we think about investing, our gender is not the one that will stand out as “the investors”. If I were to use myself as an example, even though I was a Financial Advisor, I was always the last to make the leap and put my money where I know it would work for me. I preferred saving over investing, because (well, let us say, I believe I represent the majority of women); I did not want to make the effort. I am risk-averse. I did not think I had enough to make it worthwhile, or I just thought it better to leave it to the men, after all, aren’t they the better investors? It was not until I left the comforts of the nine to five I seriously began to put my financial future as a priority and started investing.
Can you see the necessity of this blog post? If I represent the majority of women, then we are in trouble, and this needs to change.
I believe as women our mindset needs to change. Historically whenever one thinks about investing, the men are usually looked at while women take care of the less important matters. But, with more women being present in boardroom meetings and “shattering” glass ceilings; a shift in our thinking and how we view our responsibility to our financial well-being is needed. We must begin to take control and begin to work towards building our wealth not only for ourselves but also for our loved ones.
Here are a few reasons why we should take control of our financial future through investing.
- Because we can.
- We are becoming more educated.
- Advancing in our careers or operating very profitable businesses and therefore commanding/making more money.
- We are better savers.
- We are living longer than men.
- Plan our retirement – ensure that we will likely maintain our current standard of living.
- Further wealth creation.
While we are good at saving, we will get nowhere if our money sits idly in a commercial bank savings account, earning less than 1% and paying out more in fees and taxes. An investment account and, more broadly, a portfolio exposes us to opportunities that will yield a higher return and grow our money over time.
Statistically, we are said to be less likely to invest, and I believe this is driven by fear. Once again, we may be thinking about the different scenarios that may arise if we put away our money on long-term products. We may also think about the likelihood of losing some of our investments if we have non-performing investment vehicles in our portfolio. We absolutely cannot allow fear to drive our decisions. Think about the term, no risk, no return.
Let us help you to move beyond fear. Let us become equal to or better than the men in this one area. After all, there are so many other beliefs that create a gap between ourselves and the men. Let us help you to eliminate this investment gap.
Here are 6 tips to help you get started towards (further) wealth creation and dismantling the stigma that we do not know how to invest!
Get rid of the negative thoughts surrounding money – you hear it all the time leave the men to deal with the business. We are not good at managing money. This thinking leads me to ask—what about the boss babes who are crushing it in business and doing it solo? Where is the man to leave the business decisions to, where is the man to manage their finances? As single women, your financial well-being needs to be the topmost priority. Your financial well-being is your security. And so the negative mindset about our inability to manage our finances and money, in particular, has to go. We must understand that where there is no money, there is emotional pain and many other things. Change the mindset and begin to believe that you can build wealth for yourself, and you will make good money decisions such as spending less and investing more!
Become confident – You got this, confidence begins when we inform ourselves. So information will become your best friend. The decision to invest and create an investment portfolio can be very daunting when you are on the outside looking in. You will realize that it is just paper tigers when you begin to understand the basics of investing.
Team up with a great financial advisor and ask lots of questions – With the right advisor, you will get the information to begin your journey towards wealth creation. Ensure that your advisor takes time and goes through at a basic level allowing you to understand what you are getting in. A good advisor will want to know about your situation to include your children if any, then tailor a portfolio that incorporates all aspects of your life. Short, medium & long-term goals to ensure that you are well covered. Ensure your spirit connects, and you will know; ask for someone else if you are not satisfied. It is your money, and you must be sure!
Educate yourself, become financial savvy – Do not leave the decision to your financial adviser. There are resources available online that will be useful to you. Make it a priority to do your research.
Ensure you are diversified and that you have an emergency fund for short-term cash flow as well as medium to long-term options. Ensure that your money is in investment solutions that are safe as well as medium to high risk. A well diversified portfolio helps to manage your risk when one portion of your portfolio is under performing. Your risk exposure should also be dependent on your age.
Keep track of your portfolio’s performance periodically. It amazed me when clients would leave decisions up to me, and then a year or years would go by without any question about the performance of their portfolio. Talk about blind trust. Always remember that it is your money and unless you are filthy rich and even then, you must know what is happening. You must know how your investment decisions are paying off.
Stop delaying your financial wellness and thinking you don’t know enough. Stop thinking you do not have enough money to begin your journey towards financial freedom. We encourage you to accept that now is the right time to start. It is the beginning of a new year, a new decade. We are usually more open to trying new things. How about making your financial well being a new thing, a priority. Seek the help you need and start the journey towards wealth creation.
If you need help in finding a financial advisor or maybe you need a bit more information, send us a note at info@thebeyondwoman.com. We will be happy to connect you with someone.
Cheers to a New Year & Decade of being courageous and taking hold of all that is already in our grasp with God at the fore.
