5 Things To Consider Before Investing
While the gender pay gap continues to be a struggle for women around the globe, what we do with our money can set us apart – and set us up for a better life and retirement. The key is knowing how to invest, as women, before we buy the first stock, or open that first savings account. Here are 5 things to consider before investing:
1. Take an investing course.
Yes, I said it. The ‘education’ word. When do we have time to take a course on investing when we’re already working 40 hours a week, raising kids, spending time with our spouses, and having a life? Taking an investing course won’t be a simple thing, but it will be worth it because you’ll come out of the course feeling more confident about what all those terms your HR rep at work or your personal investment guy says.
2. Invest in companies you use.
My husband is a huge fan of Pepsi; I am a huge fan of Sharpies. When it came time to diversify our portfolio, he chose to invest a percentage in PepsiCo, while I put a percentage in Newell Brands. Now, every time I buy Sharpies, I feel like I’m investing not only in a great pen, but in our future.
3. Invest in companies you admire.
Is there a business that, for example, builds water wells in Africa or that supports girl’s schools in India? Why not invest your money with a company that gives back to the world? It goes back to the fact that as women, we are nurturers – investing in companies that vie back allows us to nurture the whole world.
4. Invest in women led companies.
Not just because we’re all about girl power, but because, historically speaking, women-led, publicly-traded companies have performed better than their male-led counterparts. That doesn’t just mean companies with female CEOs, but companies with larger numbers of women on their board of directors or in other leadership roles.
5. Don’t let investing stress you out.
As women, we are nurturers, and that nurturing can make us more averse to high-risk investing. If that sounds like you, don’t beat yourself up about not investing thousands in the volatile stock market every month. Instead, look at longer term investments and those that are less volatile. There is nothing wrong with growing that nest egg at a slower pace.
While our attitudes and beliefs about money start in childhood, we can always develop better money saving habits.
{Editor’s Note: This blog post references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.}
