Studies show that women are thinking about and approaching investing their money differently than in the past. Fidelity Investments’ recent 2022 Money Moves Study report shows that women started investing their money a decade earlier than their previous generation.
There are many advantages to investing earlier, and one of the primary reasons is having more time for your money to grow. Growing your money means that your initial investment makes interest on that money, so your pot of money increases. The goal of investing is to get your money working harder for you to achieve your financial goals.
Women are in strong education and economic trajectories where women are more educated than ever and making more money. The financial industry moving towards making investing more accessible for people through online investing platforms, self-directed portfolios, zero fees, and the ability to start investing with less money is a massive change that reduces entry barriers. It is much easier for women to invest their money and watch it grow.
Fidelity looked at women’s behavior and observed how women take a holistic approach to invest their money. Women tend to be more focused on their goals and purpose, and investing earlier helps them achieve and fund their lifestyle and goals and contribute to the greater good.
Investing in your future is not just limited to retirement. You may want to invest in taking time off, assessing your next career move, caring for parents, and many other reasons. With a well-structured financial plan, achieving your financial goals becomes more attainable.
Investing your money rather than leaving your savings in low-interest-earning savings accounts is wise to get your money working for you. You want to see your money earn money when invested. If you have not yet ventured into investing, it is not too late.
Speaking with Lorna Kapusta, head of women investors and customer engagement at Fidelity Investments, she leaves you with these investing takeaways:
1. It is never too late to invest
Get your money working harder for you and invest early or start now. Know why you are investing and why it is essential to you. Younger women are investing with a purpose to better their futures.
2. Start small
Don’t let smaller sums of money keep you from investing. Every dollar counts, so the earlier you start investing that money, the more money you have that will be working for you. Factors holding women back from investing include caregiving responsibilities, career transitions, affordability, risk and thinking their savings account is the best place to keep the money.
3. Commit and stick to it
When you have a goal for your money, it is easier to commit and stick with it. Women over 35 (36 percent of those surveyed) say they waited too long saving for retirement, so when you decide to start investing, regardless of how big or small, stick with it.
The bottom line is that if you want to invest, there are many resources you can consult to get you started. Financial health is essential and financial security reduces the ill effects that financial stress can bring to you.
Source: Melissa Houston