Asset Building For Women

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Asset building for women is often tricky. That’s, because women are more likely to live in situations that won’t allow them to put money aside, let alone invest it. For a single mom with a part-time job and some alimony, asset building with little money is difficult. But: it’s not impossible! There are several profitable investments that can be serviced with small monthly contributions. But there are some rules to coming with this type of asset building for women.

The Smaller Your Income, The Earlier You Should Start

Generally, it’s never too early to start dealing with investments and / or retirement savings. In particular not for women. But we’re looking at asset building for low-income families or saving money with low income, it’s all the more important to set long-term investment horizons, i.e. to start as early as possible.

Thanks to according offers, asset building with little money is a doable thing. There are, for instance, accumulation plans that can be serviced with as little as 10 Euros a month.

What’s more: the lesser the income available, the longer asset building for women will take. And the longer the term you should consider.

A long-term investment lets you benefit from a positive cost-average- and compound interest effect. Even, if you’re asset building with little money. That’s, because, the longer your accumulation plan lasts, the better you can sit through fluctuations and, hence, counterbalance them. This cost-average-effect lets the value of your investment rise, even if your portfolio shares loses value over a short period of time. Now, if you’re paying in little money, it’s all the more necessary to save over a long time span, in order to compensate the smaller investment by the time factor.

Start off with your pocket money, your alimony, your student grant or your side job during your studies, start during apprenticeship. You can still add to your savings rate later, but why would you want to miss out on yields that you can already gain by investing little saved amounts?

FinMarie offers free advice on how you can accelerate your asset building with little money:

Look Out For Flexible Investment Products

Precarious financial situations or limited financial means often create a certain instability. If the income varies, it’s hard to plan ahead. This might be the case for independent entrepreneurs or when a single-mother working part-time needs to buy their children school books or pay for a school trip. In these — and similar — cases, it is important that they can adapt their investment to their currently pressing situation.

There are so many financial products out there that make asset building for women possible. So the right one for you is surely waiting just around the corner. Just make sure that you’re looking for an investment type that’s as flexible as possible. One that allows for you to pause your saving rates, to increase them or decrease them, depending on what your financial situation currently allows for.

Do you need support finding a flexible investment that adapts to you and your life rather than the other way around? Our experts for individual asset building for women of all ages and incomes, offers a helping hand. A first assessment with FinMarie is non-binding and free of charge:

Stay Realistic!

Financial freedom, an economically carefree life does not mean to become a millionaire some day. It means creating a nest egg with the means available to you in order to at least keep your living standard, if not better it.

If you don’t have the respective income, no matter how early you will start to transfer 10 Euros a month into an accumulation plan, you will — most likely — not retire a millionaire. However, to provide for yourself and optimistically look forward to your retirement and old age, asset building with little money definitely suffices.

They say, in a best case scenario, one should put aside a 10% of their net income. So, if you’re making 1,200 € a month, a useful and reasonable savings rate would result in 120 €.

Can’t afford that?

No worries! Just because you can’t make the ideal savings quota, it doesn’t mean you have to renounce completely. Putting any amount of money aside is far more important, than meeting some ideal!

Also, there are ways and means to work your way towards that savings rate and getting a bit closer to it yet.

Tangible Advice On Saving Money With Low Income

Create a detailed overview of your income and expenses — including the daily coffee to go, the dominical pizza night, the tenth pack of gums this week. Doing so will automatically show you some potential savings occasions that you haven’t thought of before. (Bake that pizza yourself, take your coffee to go from home, and maybe you can go without every other chewing gum.)

Check your ancillary costs. It’s often heard of that especially heating bills are accounted wrongly. So make sure to get your heating consumption checked severely every time. And also make sure you’re heating correctly. Open and tilted windows don’t just burn heated air, but also hard cash. Gather some information on whether another internet or energy provider or another tariff might come off cheaper and initiate a change. If you can decrease your fixed expenses, you’ll have left some more to dedicate to your asset building with little money.

See, if maybe you capacities to take on a side job or a remunerated honorary office. This gives you the chance to make some more money which you can perfectly use for your asset building. Find something fun, something you love, but also let your main employer know. Especially, if you consider a job or a part-time self-employed activity that covers similar task and services your main job does.

Don’t stop to put yourself out there. Whether it’s internal positions or other potential employers: if you see a chance to improve your job position and income, take it! So stay informed and up to date on open positions and new jobs in your field. Keep all options open to move up financially and professionally and actively care about it.