Investing for women: Take control of your financial future

Women have made significant strides in achieving gender parity in the workforce and education over the past few decades. However, when it comes to investing for women and financial planning, studies show that women are still lagging behind men. According to a survey by NerdWallet, 48% of women currently have money sitting in investments within the stock market, compared to 66% of men.¹

We must recognize the urgent need to dismantle barriers that prevent them from investing and empower women to become confident investors. It is essential to acknowledge that change lies not only in the hands of women themselves but also in the investment world. By addressing the root causes of this issue, a financial system that is fair and inclusive for all can be created.

Take charge of your financial future, and achieve your long-term goals through the power of investing. Whether you’re saving for retirement, building wealth, or looking to grow your assets, investing is the key to unlocking your financial dreams. Break free of the misconceptions and obstacles that have hindered women in the world of investing. You deserve the same opportunities to invest and build your net worth.

Let’s explore various investment options and strategies that women can use to start building their Investment portfolios:

1. Importance of goal setting

Before you start investing think about your financial goals. Whether you’re saving to purchase a home, start a business or retire comfortably, setting specific and achievable goals are the fundamental steps to start your investment journey. Once you identify your goals, you can devise a plan to achieve them. You can also create a budget to allow you to maximize your savings.

Women have historically been left out of the financial conversation, but it’s time to change that. Don’t be afraid to dream big and set high standards for yourself, whether that’s starting your own company or investing in the stock market. With more wealth in the hands of women, we can create a more equitable society and help close the gender wealth gap. So go ahead, dream big and don’t let anyone tell you that your financial goals are too lofty.

2. Learn about investment products

Before you can make investment decisions, it’s crucial to understand the various investment products in the market. Making informed investment decisions can feel overwhelming, but it all starts with a solid understanding of the various investment products available in the market.

From stocks and bonds to mutual funds and real estate, there are a plethora of options for those looking to grow their wealth. But with so many options come complexity. That’s why taking the time to educate yourself on what each investment product entails can make all the difference in achieving your financial goals.

Whether you’re a seasoned investor or just starting out, taking the initiative to research and understand the various investment options is crucial. Start your journey towards financial freedom with knowledge and confidence in the ever-changing world of investments.

3. Diversify your portfolio

Diversification is essential to minimize the risk of loss in your investment portfolio. This implies allocating your funds in various investment products such as stocks, mutual funds, bonds, and exchange-traded funds. This move helps spread your investments, so you’re not over-exposed to a single market or sector. You should strive to create a balanced portfolio that aligns with your investment goals, risk tolerance and investment horizon.

A diversified portfolio should factor in your risk tolerance, identifying how comfortable you are with fluctuations in the market. The investment horizon also plays a crucial role, defining the length of time you want to hold onto your investments. By considering these factors, you can create an investment strategy that is tailored to your specific needs and objectives, ultimately giving you peace of mind and confidence in your financial future.

4. Consider investing in real estate

Real estate investment can be an excellent way to create wealth and gain long-term financial security. While purchasing property can be expensive, there are other options, including real estate investment trusts (REITs), which allow investors to benefit from the real estate market’s returns without owning property directly. REITs invest in commercial properties such as office buildings, malls, and hotels.

Real estate investing can be a lucrative and rewarding endeavor, but it’s not for everyone. That’s why it’s important to assess what you can handle before diving in headfirst. Real estate investment requires time, money, and a willingness to take calculated risks. You should evaluate your financial situation, available time, and level of risk tolerance to determine what you can realistically put on your plate.

Some individuals may prefer a hands-off approach, while others are up for the challenge of managing properties themselves. Whatever your preference, it’s essential to be honest with yourself about what you can handle. With proper planning and an understanding of your capabilities, real estate investing can be a profitable and fulfilling venture.

5. Build your network

Networking is an efficient way to learn about investment opportunities and gain knowledge and insights into the market. You can join investment clubs, attend seminars and collaborate with financial advisors. Collaborating with other investors can help you increase your investment options, share ideas and best practices, and grow your portfolio.

As women continue to make strides in the investment world, it’s important that you have access to the right resources to help you succeed. There are more options than ever before thanks to initiatives such as Ellevest. From online communities and blogs to podcasts and webinars, you can tap into a wealth of free information that can help you make informed investment decisions.

The bottom line is that women can start building their investment portfolios with the right knowledge and guidance. While initial steps can feel intimidating, it’s crucial to stick to your goals, learn about investment strategies and products, and build your network. Starting your investment journey can enable you to create long-term financial security that will yield dividends for years to come. Remember, it’s never too late to start.

1. "Survey: Less Than Half of Women in U.S. Invest in the Stock Market." NerdWallet, September 2021.

This article was written by Melissa Houston from Forbes and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.