Investing is one of the best ways to turn your hard-earned money into wealth that works for you. But it can be a risky business. If the companies you choose to invest in thrive, so will your portfolio. If they flounder, you could lose everything.
Studies show that men are far more willing to take that chance. When it comes to money, men are less risk-averse than women, and it has earned them a reputation as financial daredevils who will put aside thoughts of possible failure or loss to go after promising investment opportunities.
Women, on the other hand, are more inclined to play it safe, creating a gender investing gap where men make the money moves in the investing market while women lose out on wealth-building by keeping their money in cash.
But there are a number of high-profile women who are kicking that norm to the curb and jumping into investing in a big way. One of them is Jennifer Lopez. A Grammy-nominated pop sensation known for her dazzling on-stage performances, Lopez banked $47 million of her $400 million net worth in 2018 alone, pulling in earnings from her albums, licensing, acting credits, and Las Vegas residency. Now she’s adding another stream of income with investing.
Just a few weeks ago, Lopez joined the list of celebrity investors that have contributed funding to Acorns, a fintech company that helps users automate their savings by rounding up debit, credit and PayPal purchases to the nearest dollar and putting the change into a savings account. But Lopez has been steadily growing her investment portfolio for some time now.
In late 2017, Lopez contributed to the $15 million Series B funding for NRG Esports, a competitive gaming team. It’s a smart move, considering the growing popularity and earning potential of esports over the past few years. The industry is estimated to cross the billion dollar line by the end of 2019. Lopez is in good company with her investment in NRG, including her fiancé Alex Rodriguez, and NFL veterans Michael Strahan and Marshawn Lynch.
Lopez has invested in fitness facilities both locally and internationally. This year, she put her money behind Sarva, a yoga startup with 34 studios in India. She’s also a seed investor in TruFusion, Rodriguez’s chain of fitness centres that have gained popularity for the way they add heat to many popular workouts like Pilates and boxing.
In the real estate arena, Lopez has both individual and shared investments with Rodriguez and his real estate investment firm. The pair also proudly support Project Destined, a not-for-profit organization that is empowering inner-city kids by educating them on real estate and giving them the chance to profit from what they learn.
For women eager to experience the world of investing, there is plenty to be learned from Lopez’s approach, even if you don’t have her bank account:
- Diversify your portfolio. Lopez’s investments span everything from real estate to fintech, allowing her to take advantage of the earning potential in multiple markets.
- Go where there’s growth. NRG Esports got Lopez’s buy-in after the esports industry experienced an impressive 26.7% year-over-year growth rate.
- Invest in things you can believe in. Lopez says she chose Sarva because she believes in the vision and has experienced the physical and mental benefits of yoga for herself. She expressed similar commitment to Project Destined.
Lopez is proof that investing successfully doesn’t have to mean “investing like a man” or throwing caution to the wind. It’s a matter of choosing options that make sense in terms of market growth, financial position, and personal preferences. But the most important part is to start, because every investment carries some risk of financial loss, but not investing guarantees that you’ll miss out on opportunities for gains.
In her movie release, Hustlers, earned another $4.63 million on Tuesday, bringing its five-day total to $40.563 million in North America. That’s also a huge 68% jump from its $2.749 million Monday gross. According to Forbes, Hustlers’ scored the biggest opening weekend ever for a movie starting women of color.
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