I’m sure this is not a shocker for most people, but men and women are not the same.
Women are great nurturers and also tend to show their emotions more than men. They build strong emotional bonds with others and are better communicators than most men. But because of these differences, as well as many others, women handle money differently than men too. As a result, they sometimes invest differently.
Below are 7 investment tips for women to help them achieve greater success in building wealth.
1. Do Research
Women who do research before investing have a greater understanding as well as a better success rate in their investment choices. It’s ok for you to not know a lot about investing because nobody does when they first start out. But go ahead and admit it. Then, learn about it so you can make good investment choices. Not doing so could mean the difference between losing a great deal of money and having enough for a financially secure future.
2. Get Involved
If you are a woman interested in investing and you have a husband or partner, don’t let them do everything. In addition to learning and researching on your own, ask questions of others who invest. Then, start some investments of your own. Research has shown that women have at least as much if not greater success at investing as men do.
3. Set Goals
Figure out why you want to invest. Is it so you can take a once in a lifetime vacation in the future? Or, maybe it is for retirement or a college education for your children or grandchildren. Clearly defining why you want to invest can help determine your goals and how to invest your money.
4. Make a Plan
Once you know why you are going to invest you know how much risk you are willing to take. You also can figure out in what way you want to invest, such as real estate or stocks. Creating the right plan for you is crucial to successful investing.
5. Get Help
When you need a little more help, don’t be afraid to hire a consultant or financial advisor. Depending on the amount of knowledge you have as well your comfort level, a consultant could be well worth the cost. Of course, you could also choose to invest using a robo-advisor, like Betterment. They can automate the process and save time if you don’t have a lot to spare.
Once you get started investing, make sure you diversify your investments. In other words, put some of your money into riskier, higher return investments. But in addition, you should also have some of you money in more secure investment. You could also choose different types of investments to further diversify them. This way, if you lose some money in one of your investments, you still have others making you money.
7. Monitor Your Investments
Don’t forget to pay attention to how your investments are doing. You probably don’t need to watch them every day. Probably once a week or a couple of times a month would be sufficient. If you look at them daily it can cause you to move money around unnecessarily and cost you in fees you may not really need to pay.
Women are different than men, but using these investment tips, you can have just as much success with investing as men do. 🙂
Kayla is a personal finance blogger in her mid-20s who loves to write about money topics of all kinds.
James Hendrickson is an internet entrepreneur, blogging junky, hunter and personal finance geek. When he’s not lurking in coffee shops in Portland, Oregon, you’ll find him in the Pacific Northwest’s great outdoors. James has a masters degree in Sociology from the University of Maryland at College Park and a Bachelors degree on Sociology from Earlham College. He loves individual stocks, bonds and precious metals.