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. With a financial confidence gap of 60%, even women who are financially literate have trouble with making investment decisions. Women tend to be more conservative when making money decisions, 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 for knowledge might get in the way of making successful decisions.
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 very low-interest rates of savings accounts, money that goes into these accounts can only be ‘savings’ and not investments.
Is time your friend or foe?
By taking advantage of compound interest, you can grow your investments significantly. On the other side, keeping most of your money in savings account you can significantly miss out on investing opportunities.
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 having the fear factor on the lead. If you can handle the worst possible outcome after having a knowledgeable understanding, 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! As much as you might perceive your questions as silly or embarrassing, you need 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?
-
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 reigns on your finances. By asking questions that might embarrass you, you can build your confidence, gain significant financial knowledge and better understand your financial opportunities.
-
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, open up to them about financial topics you want to know about. Are you curious about who to work with for investments? Your social network might be working with great people you might be unaware of. By reaching out, you can broaden your perspective on financial topics. If your questions are more technical, you can always reach out to a financial planner to gain expert insights!
-
Outsource financial knowledge!
Working with a financial professional can significantly lift the weight off your shoulders when it comes to investing. Although you might be extremely knowledgeable, working with a financial expert with years of experience might bring you greater opportunities and expertise. Not to mention that it will put your mind at ease! If you want to have greater peace of mind around your investments, a financial planner is a great option. As professionals, they can inform you of everything you need to know while doing the hard work.
-
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!
More Financial News & Events
Living your best life: Striking the balance between enjoying life now or enjoying it later
Sep
Living Your Best Life: Client Testimonials and Insights
Sep
Unpacking FOMO: Understanding biases, emotions and financial attitudes
Aug
How to overcome FOMO to not overspend this summer
Aug
How to Overcome FOMO on Investments
Aug
What behaviours undermine your ability to build wealth
Jul
How Do You Loose Wealth
Jul
What Does Wealth Building Mean to Our Clients?
Jul
Estate Planning: What You Can Learn From the Mistakes of Celebrities
Jun
Estate Planning For Lawyers
Jun
Estate Planning for Business Owners
Jun
Managing growth for business owners
May
Are you a lawyer with questions on how to grow your investments?
May
Cultivating a growth mindset around money
May
Why financial growth can be deceptive
May
Home and Financial Document Organization
Apr
Business owners, it’s time to start spring cleaning.
Apr
Spring Cleaning Your Finances
Apr
Unique financial challenges female lawyers face
Mar
Taking Action: A Woman’s Perspective on Deciding To Tackle Her Finances
Mar
Is there a gap in your income protection?
Mar
Knowing the difference between Tax Filer and Tax Advisor
Mar
Conquering Women’s Fears Around Finances
Mar
Trends in Family Law
Feb
PART 2: Financial Conversations Couples Need To Have at Different Life Stages
Feb
Financial Conversations Couples Need To Have at Different Life Stages
Feb
Disruption and Reinvention: Starting a Second Career in your Forties
Jan
How to create a strong financial fortress during market downturns
Jan
Creating a Financial Vision Board for 2023
Jan
5 Tips to set yourself up For Financial Success in 2023
Jan
Year-end Donation strategies
Dec
Year-end tax planning
Dec
Getting clients organized for 2023
Combating Quiet Spending
Nov
Our Client’s Journey to Building Financial Confidence
Nov
How Working with an Advisor can Improve your Confidence
Nov
A letter from the CEO’s desk
Nov
Getting Psychologically Ready for Retirement
Oct
Retirement Planning for Business Owners
Oct
Top Issues Clients Face with Retirement
Oct
What Risk Means for your Investment Portfolio
Oct
Finding Investment Opportunities in the Market
Sep
Behind The Scenes On Helping Our Clients Choose Investments
Sep
How to Deal with Debts Amidst Rising Costs
Sep
Buying and Selling Homes as Prices Fall
Aug
Parenting and Back to School
Aug
Dealing with the high cost of living
Aug
Ask Team Jackie Porter Series – Financial Planning with Jin Lee
Aug
Budgeting for Home Renovations
Jul
Mental Health and Finances
Jul