Investing Tips For Empowering Women’s Confidence

Why aren’t women investing as much as men?

Contrary to popular belief, there isn’t as significant of a financial literacy gap as there is a confidence gap between men and women. Turns out the financial confidence gap of 60% has more with women not tapping into what they already know about money when it comes to making investment decisions. Women tend to be more conservative in investing, which prevents them from significantly building their financial fortress. Although it’s good to know as much information about your investments as possible, the need to feel that you must become an investment expert before you can fully participate in building wealth in the markets can often get in the way of women creating her financial fortune.

The difference between saving and investing:

Women might consider saving money in their savings accounts as investing, however, this might not be the reality. Saving is holding your money in a safe account for a temporary period and investing is putting that money in investments to grow for a long period of time in the hopes of becoming a significant if not primary income resource. With the very low interest rates of savings accounts, money that goes into these accounts can only be considered ‘savings and not investment accounts.

Is time your friend or foe?

By taking advantage of compound interest, you can grow your investments significantly over time. On the other hand, keeping most of your money in savings account you can significantly miss out on investing opportunities especially as you get closer to retirement and have a shorter window to invest.

How can women break the confidence barrier and start investing?

A significant way to fix the confidence issue is to truly understand what the worst outcome might possibly be and how we might react to that. Do the potential benefits outweigh the potential costs? Working with a financial expert who can explain all the details of your investments with you can help you to get answers to these questions and make educated decisions without the fear factor. If you can handle the worst possible outcome after having a better understanding of return potential of an investment, then you can consider taking the risk.

How can we gain this knowledge power? By having money conversations!

If you have questions about your investments, you should always ask your financial planner. There are no stupid questions when it comes to handling your money! If you are working with someone who makes you feel this way you have permission to move on. As much as you might perceive your questions as silly or embarrassing, you are entitled to have a complete understanding of how your money is invested and managed. This also builds the trust element between you and your advisor and helps you to take advantage of better investing decisions.

How can women build their money confidence to make investment decisions?

1. Get out of your comfort zone:

Talking and asking about money might be uncomfortable, however, they are vital for you to step out of your comfort zone and take the reins on your finances. By asking questions and getting clarity on what you need to know, you can build your confidence, gain significant financial knowledge and better understand your financial opportunities.

2. Reach out to others:

You aren’t the only one who might be having some challenges with money! If you have friends or a community you feel comfortable with, encourage conversations about financial topics you want to know about. Are you curious about who to work with for investments? Do you have burning questions you want answered? Your social network might be working with great financial experts you might be unaware of. By reaching out, you can broaden your perspective on financial topics and get timely advice. Expert insights may be especially helpful if you have a very complex or specific financial question.

3. Outsource financial knowledge!

Working with a financial professional can significantly lift the weight off your shoulders when it comes to investing. Even if you feel good about your financial circumstances, working with a financial expert with years of experience might help you to identify financial opportunities you have not taken advantage off. They may also be able to validate your assumptions about your financial circumstances and put your mind at ease! If you want to have greater peace of mind around your investments, a certified financial planner is a great option. As professionals, they can give you a written plan that leverages all the financial opportunities available to you based on your specific situation.

4. Protect yourself from risk:

Do you have a financial plan if you lose your job, spouse or health? Having investments that become a source of income can protect you from these life risks you might not be expecting. If you want to get started with investing planning, book our complimentary 30-minute consultation session with our team!

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