These investment tips for women will help you take charge of your money and manage financial stress. They’re from financial advisor Barbara King, who also explains why many women aren’t eager to deal with personal finance.
Before her tips, a quip:
“We [wealthy people, wise investors] simply attempt to be fearful when others are greedy and to be greedy only when others are fearful,” said Warren Buffett.
That’s how Buffett became a billionaire – by using his fear of investing in the wrong thing wisely! If you’re new to the investment game, you might find Rich Woman: A Book on Investing for Women – Take Charge of Your Money, Take Charge of Your Life! helpful.
And, here are King’s investment and personal finance tips for women…
Investment Tips for Women – How to Take Charge of Your Money
Women in particular need to be able to understand the financial investments for two key reasons: widowhood and divorce — which both leave women struggling with their personal finances and unable to achieve financial goals. Statistically, wives outlive husbands and are sometimes left to deal with unfamiliar household finances after he passes. This could happen when women are 50, 60, 70 or 80.
With the high divorce rates, women may be running the finances sooner than later. The earlier women take charge of their money and make wise investment decisions, they better off they’ll be!
A woman’s fear of investing money comes from not knowing about personal finances, and not wanting to make the wrong investment decisions. Women are not alone — many investors get confused and concerned about their financial nest eggs, especially when the economy is shaky! However, women tend be more emotional when it comes to money management than men.
3 Investment Tips for Women
1. Get the facts about each financial investment. Worry and fear will only paralyze you. Whether it’s the family budget, stock investments, college savings, or mortgage loans — no financial decision can be made without understanding the financial figures. Understanding personal finances will help remove the emotion from the decision. The more you remove emotion, the more logic will prevail. Write down the facts when making any financial decision – whether you’re applying for a new home mortgage or buying a used car.
2. Measure your financial growth and progress. Stop looking at where you want to be; instead, realize how far you have come! Set your 3-5 financial goals every year. At the end of the year, check in to see if you’re still taking charge of your money. Success is found in increasing your 401k contribution by 1% on your birthday, or when you get a raise or job promotion. Achieving your financial goals is also found in trimming your budget and getting your will and trust done. Celebrate each financial success and milestone!
3. Know what money you have and where you want to go financially. So many men and women have no idea what they actually have for investments. If you are working with a financial planner, have them explain your investments until you understand them — no matter how long it takes. Always ask about fees so you know what you are paying for the investment. If you manage your own investments, research and understand them. For example, when deciding your 401k allocation, research each fund on the web to ensure you are selecting the best money management possible. The fundamentals of a solid financial plan include assessing your time frame, financials need and investment risk tolerance.
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Surprising Things About Women and Money
Women are better off financially than they think! When you are consumed by worry, you have a negative outlook. But by understanding the facts, your goals, the timeframe, and your risk tolerance you can manage money stress and fear. Understanding helps you develop a plan, and chances are you’re in better shape than you think. Use this knowledge to move forward and achieve your financial goals.
Women aren’t alone in facing money stress. The financial turmoil has even the experts wondering if their strategies are sustainable. Most people, especially those within 10-15 years of retirement, are worried and questioning their financial plan. Differentiate yourself by developing a financial plan to deal with the changes in the market and your new financial reality. This will put you ahead of the pack!
For more tips on taking charge of your money, read Money and the Law of Attraction – 4 Ways to Attract Wealth.
What do you think about these investment tips for women? Are you savvy or scared to invest your money?
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Barbara King is an Associate Financial Advisor with Axiom Advisors in New Hampshire. Her financial planning perspective is featured on her blog, Financial Queen.