When it comes to money in the household, women are said to have more power in managing and budgeting than men. They were found to be more in control of the household financials especially when they are the breadwinner. Thus, it shouldn’t be particularly challenging for women to begin investing their money to attain financial freedom.
However, women are said to lack confidence when it comes to investing, where having more money has actually made them thriftier. So, how do we combat the fear of investing? Here are some effective tips to help you jumpstart your investment portfolio and gain financial freedom easier.
Technology is on our side
Although the tech industry may lag behind in terms of employing more women in various fields, women generally aren’t behind in adopting technology to help them on a daily basis. In fact, a report by the Guardian suggests more than half of women are gamers (52%), using different forms of devices – from smartphones to PCs and consoles to enjoy their favorite games. They were also credited with being more loyal to their gadgets and apps than men. Being more tech-savvy gives women an advantage in investment, as various platforms have been introduced that makes managing, tracking, investing and trading easier.
Young investors were found to have the same high affinity for technology, making them ideal candidates for forex trading. With the help of these tech tools, they are provided with a convenient and faster way to obtain real-time access to investment information. Some platforms even offer charting tools that make it easier to assess the global markets as well as enter trades on the go. Women have these tech advantages in investment, making it easier for them to gain financial freedom if they follow well thought out processes.
Preparation is needed
It’s not enough that you have the money to invest. Women must understand that they also need to know where their money is going and how much risk one can handle with their investment. The initial step is to educate yourself. The investment world is filled with jargons that can easily overwhelm first time investors. Read thoroughly about each investment opportunity and the best strategy to gain from it. Second, set clear financial goals. Are you planning to invest for your retirement? Do you only need to invest for a short period of time? These will help better determine your financial goals, which should be the deciding factor on the kind of strategies you need to make on your investments. Lastly, build a solid investment plan by determining how much you have to invest and how to gain from it accordingly. A financial plan should be your guideline to guarantee investment continuity and build a solid foundation from your portfolio.
Look for a female financial advisor
Whether you are new or a seasoned investor, you should always seek assistance from experts to ensure your investment portfolio and financial strategies are in line with what they recommend. However, female financial experts state “look for someone who speaks your language.” Although, male advisors can work with female clients, they were found to be largely data-driven, jargon-driven, and low on empathy as opposed to their female counterparts in the business. Penn Mutual Life VP April Wilson said, “A lot of times we have the same interests, challenges and concerns as other women do, and we can be a resource to each other. We know the importance of listening and explaining things in a manner they can understand.” It’s best to work with someone who truly understands your financial goals and patterns the right investment strategy based on your investment personality for greater success.
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