“Saving” and “Investing” are the two crucial and indispensable components of our financial life. In fact, looking at the high cost of living and rising inflation trends, one can’t imagine to survive for long without adequate savings and investments.
When it comes to investing your hard earned money, the general image that we have in our minds is that women are a bit insecure about investing their money. However, recent studies and analysis shows that women are better investors and have the tendency to outperform in investing as well.
Let me share my own thoughts…
Few years back when I completed my education, I also used to think the way like many of you might be thinking right now. I dreamt of getting a decent job with a good pay, an impressive designation and attractive perquisites. I got one just after completing my studies, the handsome salary package and those monthly salary credits to my account just gave me a superb feeling. I was overjoyed, this was just what I wished for.
I was not a spendthrift, but an amateur who had to learn a lot about saving and further putting my money in the right direction to get good returns. No doubt, my financial knowledge has guided me in my journey to plan and manage my finances so far.
What I believe is that today’s woman is not only a homemaker, a working woman but an all-rounder sharing equal responsibilities in each and every sphere of life. Being ambitious and starting a career is just the initial phase, how you manage things after that is the real test.
“By definition, saving-for anything-requires us to not get things now so we can get bigger ones later”– as quoted by Jean Chatzky an award winning financial journalist, an author, a motivational speaker.
So, a woman surely needs to focus on her savings and long term investment planning at a young age. In order to do so, you have to make yourself ready and confront few important investment challenges aligned with your different investing goals.
Who doesn’t love to be financially independent? I do and so do we all…
What I learnt from my mistakes and experiences, I would like others to get ideas from it and enhance their money managing capabilities.
5 Investment Challenges to confront as a Woman
- Grab Basic Financial education:
This might not seem to be very interesting to all. Although, for me it is since I am from the same field. I enjoy gathering every piece of financial information that adds to my knowledge. But, in general here I don’t mean to do a course/degree in finance, you just need to keep your basics clear. Know what you are earning, where you are putting it and what you are getting in return.
When you get your pay check or salary credit, think beyond keeping the same in a salary or savings account. Look around, there are numerous investment options that can fetch you higher returns.
2. Risk tolerance:
Women are generally considered risk averse on investing front, I used to be one earlier. A bit nervous and hesitant to invest in different investing alternatives. But, as time passed by I realised the importance of expanding my risk horizon and diversification of my funds. I won’t suggest to put your money in highly volatile assets as a newbie, but just stashing your money in a savings account won’t really help in the long run. So, you have to think differently and come out of your comfort zone.
“Taking too much risk is also not good” but improving your risk taking capability to some extent might prove to be fruitful.
3. Realise your financial role as a partner:
Try to be an equal participant along with your partner when it comes to managing and investing your money. Prepare an emergency fund together to safeguard you in case need arises. This will not only boost up your investing confidence but make you realise your financial duties and responsibilities in a perfect manner.
Make sure you both discuss your financial roles to carry things smoothly. A mutual and sensible financial planning shall help in strengthening your personal bond as well.
4. Control your emotions:
We often get carried away by emotions may it be spending money or investing money. Spend where you actually need to and not what others sell you. In the same way, don’t do what the crowd is doing i.e. don’t base your investment decisions on what others are doing.
“My friend invested there, so I would also go for it”, is our general thinking. This should not be done, analyse your own financial objectives and then plan your investments.
5. Live a Financially Disciplined life:
Women tend to face various kinds of obstacles balancing their personal and professional lives and still come out strong. One more addition I would like to make here is the financial life that also needs to be taken care of to carry on a happy and financially independent journey. So, anything related to your personal finance should be tackled wisely, whether it is your personal loans, credit cards or investments for that matter.
The earlier one realises the importance of saving and investing, the better you can plan for your short term and long term goals.
What are you waiting for? Make an Investment plan and start acting upon it. Gone are the days when you can rely on your children to support you after your retirement. It is anyways better to start early, stay financially strong and reap the benefits at a later stage.