From market research and speaking to our customers, we discovered that women know investing is a great way to grow their savings, but many feel that it’s out of their reach or too risky.
When anyone invests, it isn’t just about growing their wealth, it’s a pathway to financial independence. It’s not enough to just be saving in a cash account, especially after you take tax and inflation into account . Investing does carry risks but smart investing is about balancing risks with rewards.
To be financially independent
There is financial vulnerability among women of all ages. Learning and practising money management skills will pave the way towards financial independence. This also means having the freedom and empowerment to walk away from situations with financial security, and not having to rely on family or a partner to support you.
When it comes to paying off debt, saving and investing, don’t make the mistake of focussing simply on the numbers (though that is important). Remember that building up your own personal wealth is a safety net in case of emergency and what helps you achieve the lifestyle you want.
And don’t be misled by the stereotypes you see in the movies. Anyone can invest – you don’t have to be a big shot banker living in a multi-million dollar home.
To retire comfortably
Women have significantly lower wealth compared to men at retirement age, when both assets and superannuation are considered. In fact, on average, they retire with around half as much in their superannuation as men.
37% of women report having no personal income at the age of retirement and 90% will retire with inadequate savings to fund a comfortable lifestyle. And let’s not forget that women statistically live longer than men.
When it comes to retirement, it pays off to be proactive about it. It doesn’t just mean paying attention to your superannuation, but doing everything you can to make the most of your money – i.e. investing.
The earlier you start, the better. If you choose to take career breaks and reduce working hours to raise children or care for elderly parents, you will be thankful for the power of compounding .
Females make amazing investors
Research shows that women who invest in the stock market are potentially more successful than men. This is because women tend to ‘buy and hold’, therefore having less turnover and lower transaction costs.
There’s even a book called ‘Warren Buffett Invests Like A Girl: And Why You Should, Too”, which suggests that female investors are more willing than men to admit that they do not know everything. They learn from their mistakes, trade less, and take less risks. They are less optimistic and more realistic than their male counterparts and put more time and effort into researching investments. Females make amazing investors!
Even though improvements have been made to reduce the gender pay gap, there is still so much to be done to achieve gender equality. If females make amazing investors – why shouldn’t they take advantage of this opportunity to grow their wealth?
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