Sometimes women have to do more with less, including investing. Unfortunately, this often affects women the most in their finances. We’ve heard of the gender wage gap, as well as the unfortunate truth women have, for a long time, been discouraged from openly discussing their finances. But there are other things that still find a way to threaten our financial well-being.
The gender investing gap is real.
And… it reveals a serious divide in the investment habits between men and women. According to Money, in some cases, over the course of their professional careers, women miss out on approximately $1 million in investments in comparison to their male counterparts. While this is alarming, there are actions we can take to change things.
Most women believe they don’t know enough about investing to effectively take the plunge. As a result, they put off starting to invest until they feel more financially comfortable. There is also a prevalent misconception about investing that you need to be an expert before starting. However, the reality is that there is a plethora of tools and guidance, such as the one that you can find here, that makes it simple to begin investing with as little as the coins in your purse.
what happens when women do invest
The irony of it is that when women do invest, they outperform men. In a survey, conducted between 2012 and 2016, by the Warwick School of Business for a group of 2,456 investors, researchers found that, of the group, the female investors did better than their male counterparts by 1.2% each year. Astounding!
So, while women are more conservative with their money that same risk awareness and pragmatism actually plays in their favor.
Although this may seem like good news, the deck remains stacked against women when it comes to investing.
why women should be investing
It’s critical for women to be able to achieve a sense of financial equality and freedom in their lives. Investing is one of the most effective strategies for women to create wealth. And with concerns about risk and stability, knowledge is power.
It can be difficult getting comfortable with the idea of investing your hard-earned money. This is especially true for those of us that are already underpaid. Consider this: according to the Bureau of Labor Statistics, women earn around 83 cents for every dollar earned by a man. This means that even if we save the same percentage amount, it’s still less than them. In addition, women tend to live for a longer period of time. Essentially, when women merely save their money without considering an investment strategy, less money has to last longer.
Many businesses may match your contributions to a 401(k) or other retirement savings plan. If you are not sure whether or not investing is a viable option for you, participate in your company’s retirement program and see your savings grow and flourish.
However, while the number of female investors is increasing, there is still a significant disparity between the number of male and female investors in the financial markets. Make certain that the firm you choose will assist your financial objectives and will recognize the specific problems that women confront in the sector. Take a look at the companies that these investment firms and platforms have invested in as well. Is there a woman in charge of any of them? Do they provide assistance to women? While choosing a firm or platform with a feminist perspective may not have an immediate impact on your return, doing so will aid us in our efforts to achieve financial equality in the long haul.