Women turn to investments for different reasons – some are dissatisfied with their earnings and want to try to earn something extra, while others wish to secure an addition to their retirement fund. Regardless of the reasons, one thing that is certain is that it is not easy for a woman to get involved in the world of investment since as with the business world, it is mostly comprised of men.
Some women feel like they just cannot cope with all the obligations on their plate and learn about investing on top of them but they may be surprised to learn that it is not as complicated as they expected. They may even find out that they are better at it than they thought they would be. In light of encouraging women to step into the waters of investment, here are a few pointers that could come in handy.
Inform yourself well
Many women traditionally opt for saving thinking it is a more prudent manner to accumulate than risky investing but that is not quite true. One manner to reduce exposure to risk when it comes to investing is diversifying your portfolio. The idea is to have more different types of investments as opposed to individual high-risk investments. As a first-time female investor, you would need to learn a thing or two about different types of investments, such as cash, stocks, bonds, exchange-traded funds, mutual funds and strive to include a bit of everything in your investment portfolio. The more you learn about your possibilities, the less risky and unsystematic your investments become and you will feel more confident in what you do as well in the outcome.
As with any new undertaking, it is crucial to know where you are going. Ask yourself, where do I see myself in half a year? And how about three years from now? Of course, unpredicted things may happen and your plans would have to be adapted but having some plan helps a great deal when it comes to motivation. Also, it is essential to make those goals as precise as possible. For instance, your short-term goal could be to accumulate a certain sum in the following year by way of different investments. As for your long-term goal, it could be seeing yourself starting your own small business, for example, a patisserie, in three years’ time with the capital made entirely of smart investments. Once you set a course, everything else can be adapted around it.
Ask for help
So, you have done your research, created a path of short-term goals, and set off into the world investment. When you encounter a problem, do you give up, make a random call or ask for help? A prudent female investor in a robust economy such as, for instance, Australia, would go with the last one since there is no shame in consulting professionals to aid you on your journey. The key is to ask around and perhaps somebody has to recommend a reliable tax accountant in Sydney who can help you get your taxes in order during the tax season. All in all, starting something new always comes with certain challenges and if you wish to be successful, you have to learn from the more experienced who know more about taxes, laws, and regulations which can save you both time and money.
Make it your routine
In order to develop a passion for it and constantly be in the loop with what is going on, it is best to make a routine out of investing. This could be something simple such as setting aside the same amount out of your paycheck every month or every three months and aim that money towards investments you will previously analyze. On the road of creating a habit out of it, you might need to remind yourself why you are doing it, especially if you suddenly see a sale in your favorite shop. You might also need to create a sort of a trigger, so, for example, each time you get a paycheck, you always go straight home and sit at the same shop and follow the same routine of investing a part of your salary. You would see that in time, setting aside some money will no longer be a burden and that you can actually function without that money, especially when you see your retirement fund filling in nicely.
Invest in female leadership
Picking the right investment can be tricky, as already mentioned but when some time passes, you will be able to perceive those that stand out more easily. It is interesting to note that female start-up founders are less motivated by money and when you consider your reasons for starting this journey, you will soon realize that it matches your stimuli to a large extent. Women often think about the wellbeing of their children and parents and are still predominantly those who take care of their parents and children. This is why investing in companies that are led by other women can be the right choice for you since, in this manner, you will be helping like-minded people, making the motivation and the satisfaction even greater.
Starting something that you never tried before can be tough in many ways. You may have to overcome some obstacles you never knew existed but if you stay resolute, you will only come out stronger. Even if you make a few mistakes at the beginning or anywhere along the line, it is only normal and even those more experienced make wrong choices.
The vital thing is to inform yourself about all the alternatives and to diversify your portfolio by investing your money into different options. And if you ever run into a problem, don’t be afraid to hire a professional or to ask for a recommendation. By making investing your habit, you will slowly become an expert yourself.