How to Invest as a Women
We’ve all heard of the wage gap and know that there is a pay disparity. That is very real. The thing we don’t talk about, though, is the gender investing gap.
Women in Investing
A survey by S&P Global found that only 26% of American women have money in the stock market. The same survey found that 65% of women have a large percentage of assets in cash. However, when women do invest in the stock market, we outperform men by nearly 1%.
We can do better than the 26%! We've never been taught how to do it, which is why it feels so hard. Let’s change that today!
So the gender investing gap just means that women don’t invest as early or as much money as men do.
Men invest far more money than women, even when the discrepancy in wages is accounted for.
40% of men are likely to consider themselves as investors as compared to 22% of women. The same study shows that women are more likely to save cash in savings accounts, checking accounts, and even in their own home instead of the stock market.
The combination of not putting money into their portfolio and earning a lower income further widens the wealth gap for women. And this isn’t good for any person, family, community, etc.
Why Women Invest Less
It’s impossible to pinpoint this disparity to one root cause, but here’s what the research does tell us:
Limited Access to Money
The wage gap is not doing us any favors. Women earn less than men and have less money to begin with. In the past, women faced obstacles in borrowing and investing, affecting their ability to access money.
Risk Tolerance and Risk Capacity
Studies show that women tend to shy away from risks more than men do. This may prevent you from taking advantage of risky yet potentially lucrative investments. It may also lead you to avoid investing altogether because of the fear of losing money.
Confidence
The financial sector has traditionally been a place for men only. Society socializes women to believe they're not as good at managing money as men. These limiting beliefs negatively impact our confidence.
Limited Education and Mentorship
I recently talked to someone who said she felt like investing was some secret club. I kind of agree!
We don’t talk about it, we don’t formally learn about it, and we have to find out for ourselves.
Women Who Invest Outperform Men
Sorry guys, but women make really good investors. Like, 1% better.
Now, 1% may not seem like a big deal, but that amount becomes incredibly impactful over time.
Here are some of the reasons women are good investors:
Women buy and sell less often than men
Women have better-balanced portfolios
Women seek advice and actually apply it
Women stay calm during market downturns more often than men
Women are good investors! We shouldn’t be worried that we lack the knowledge or skill, but investing isn’t something we’re taught, and this needs to change.
Finance should not just be a secret boys club. We need more women in this “secret club!”
Overcoming the Investing Gap
If you’ve been sitting there with a bunch of cash on hand, this is your sign to take the plunge and invest!
OR if you’re sitting there thinking you don’t have enough money to invest, this is also probably false!
You can start investing with literally $1!
Let me show you how. Sign up for my free investing class!
