Facts first: typically, women earn less than men. At the same time they live longer. And thanks to issues such as the pink tax, women spend more on everyday items. In short: women need to live off fewer assets for a longer lifespan during which they pay higher prices for basic goods. Also, women tend to take less precautions regarding their pension.
Long story short: yes, money most certainly is a women’s issue. More than some might imagine.
Like it or not, but with old-age poverty among women, divorce rates, and single-mom quotas on the rise, women need to take matters into their own hands. Yet, there are some quite persistent ideas, suspicions, and misconceptions going round among women, when it comes to investing. Since these tend to hold women back from undertaking necessary steps and precautions, addressing these misunderstandings is long overdue.
Female empowerment in terms of handling and managing money and investments, makes for a large part of our incitement here at FinMarie. So, it’s time to bust some of the more dangerous myths about investing that prevent women from doing the right thing for themselves and their families in this post.
Learn about the fake and fiction underneath some of the startling assumptions women have on investing and break down the barriers to investment.
Myth No. 1: You Need Large Sums To Start Investing
There are ways to start investing with amount as small as 10 Euros. There is no need to wait until you win the lottery before having enough money to start investing. Start with a small amount and invest it in accumulation plans with a monthly savings rate.
By investing monthly, you can equate the price you pay for investments, as you buy them at varying prices over time. Your monthly payment purchases more when the price is lower. While, if the price rises, fewer shares are acquired. This is called cost averaging.
Myth No. 2: If You’re Saving, You Don’t Need To Invest
There is a huge difference between saving and investing. And while there’s nothing wrong with simply saving, missing out on letting your money work for you, basically has it lose its value over time. Simply put: it’s highly unlike that any woman will achieve financial freedom or meet her life goals by just putting money on a savings account.
Myth No. 3: You Need A Financial Advisor
The majority of FinMarie’s clients investing with us do so without prior financial advice. How so? Well, financial consulting isn’t always an indispensable must.
Whilst women may face very specific financial challenges throughout their lives — like career breaks, reduced earnings and contributions, longer life expectancies, divorce, to name just a few —, it isn’t always necessary to seek advice. Even if you’re going through difficult times. If you’re financially aware, tough times might not rock your boat that hard that it causes the need of financial advisory.
If you feel like it does, however, or even, if it makes you just feel better in general to approach investing with someone reliable and expert by your side, don’t hesitate to contact our financial consulters:
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Myth No. 4: You Need To Dedicate Hours To Investment Analysis
Of course, there are some semi-professional, yet serious hobby investors out there that devote hours of their precious lifetime to the analysis of their investments. But there are plenty of private investors that are just as busy as anyone else. And while there’s a fine line between not dedicating any time at all to think about your financial independence and not finding time or incitement for detailed research, there is actually a huge difference between taking investment easy and getting all dogged about analytics, re-balancing, buying and selling, and controlling stock developments on an hourly basis.
It is absolutely okay not know literally everything there is to know about investing, before you get started. Take it a bit at a time and learn by doing.
And if you really cannot find any time at all, FinMarie’s financial advisory team is here to help you.
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Myth No. 5: Investing Money Is Not Save
It is true that investments entail certain risks. The higher the gain, the higher the potential risk of losing everything. However, there are investment products, that allow to reduce theses risks to a normal level, making it possible to invest for even the most anxious of women.
We often sense that women are especially worried about stock market crashes. Many of them still have very vivid memories of the latest crash in 2008. And while it was, indeed, a remarkable decline leaving many private investors with little to nothing left, neither was this downfall the first of its type, nor did it leave a lasting effect on price developments. Actually, over the last several decades, stock markets generated a 9 to 10 percent growth on average — including the periods of drops in prices due to crises and crashes.
Wonder what experienced investors did at the time? They bought shares. While others tried to save what was left to save by selling stocks and shares, calmer minds purchased. Because every decline in stock market history has always been followed by a new rise, leaving the more relaxed investors with a noticeable profit at the end of the day.
If you want to stay informed and gain further insights in the world of investment from a female perspective, why not subscribe below to receive an e-mail every time there’s a new blog post waiting for you?
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