But why are women less likely to invest even though they’re great at it? I’m sure everyone has their reasons, but the study points to three: confidence, willingness to engage, and time.
At Sharesies, we believe investing should be accessible to everyone and want to help more women feel empowered to make the most of their investing ‘XX’ factor.
Why is investing important for women?
Although we’re all striving for gender equality, there are significant things that have an impact on women’s finances:
Women often live longer.
Women are typically not paid as much.
And are more likely to take a career break (which adds to the gender wage and the retirement savings gap).
All of these mean the money needs to stretch further. And part of doing this is making sure you’re getting yourself set up to make the most of the money you get.
Why do women make great investors (when we do decide to invest)?
Women are more likely to take a ‘buy and hold’ approach to investing. And because of this are less likely to try ‘time the market.’ This means being less likely to buy when prices are high or sell (in a panic) when things start to drop. This is a strategy that has proven to be very reliable over time — particularly for those who don’t want to spend all day worrying about the ups and downs of the market.
So, how do I start investing?
For most people, investing isn’t like the ‘Wolf of Wall Street’. You don’t need to be a stock picker, the most important thing is deciding to invest, and getting started.
Find the investment type that suits you (sorted.org have created a great investor kick starter tool that asks you questions about how you’re planning to invest and gives you an investor type)
Choose a platform that engages you and helps you invest the way you want. Investing is becoming more accessible than ever. You can grow your portfolio one payday at a time, investing amounts you can afford.
And then start learning how to invest by giving it a crack — the earlier you start the better.
‘But my partner does this stuff’
This is something we get told far too often. Don’t outsource learning about money — get involved and take joint control of your money.
At Sharesies, we think it’s really important for women to be involved with their money. Although there are a bunch of reasons for this (that we don’t really want to think about). There are also a lot of positive reasons as well. If you’re in a relationship then 2 heads are better than 1, 2 people investing for their interests will be more diverse. And money can be such a household stress, being involved means you can both share the load.
Whether you’re in a relationship or rocking it solo, making sure you know ways to make your money work harder will only help you in the long run.
We’d love to hear any questions or stories you’re keen to share about investing.
Ok, now for the legal bit.
Investing involves risk, including the potential loss of principal. The info provided above isn’t a recommendation to buy, sell or hold any financial products available through the Sharesies platform. Before investing, consider your investment objectives and read the fund’s product disclosure statement carefully. It contains the fund’s investment objectives, risks, charges and other information which should be considered carefully before investing.