‘You have to learn how to have your money work hard for you, so you don’t have to work hard for money.’ – Robert Kiyosaki
Money plays a bigger role in women’s life than most of us will admit. Just ask yourself, if you had all the money in the world are there just maybe a few things you’d be doing differently in your life?
Money has the power to keep a women trapped or to set her free. It’s up to her.
When we think of the world’s greatest investors, we think of Warren Buffett, Charlie Munger, Benjamin Graham, Mohnish Pabrai… and no women. There definitely need to be more opportunities in investing for women.
The “how-to” of investing – how to buy and sell stocks, how to manage a rental property or how to analyze a business investment – is the same for men as it is for women.
The best way you can balance out and combat all of that is growing your money exponentially through investing.
More women are graduating from college, entering the workforce, and making the same or more than their male counterparts. So don’t listen to those negative stereotypes and make your way into investing, too!
Anyone who is making money should be investing, no matter how much money they make or what gender they are. Everyone should have a nice retirement!
The following are 5 reasons why women should become investors:
1) Unlimited income
Because of the still-present wage inequality between men and women, a woman is often limited in the amount of income she can make. Studies show that women, with the same education and experience as their male counterparts earn about 74 cents for every dollar their male peers earn.
In investing, the money you can make is unlimited. You are completely responsible for and in control of the amount of money you make as an investor.
2) The Statistics
The statistics about women and money are very startling. The following are U.S statistics, yet I find that for other countries throughout the world these statistics are either similar or are trending in the same direction.
In the U.S.A :
- 47% of women over the age of 50 are single. (This means they are financially responsible for themselves)
- 50% of marriages end in divorce. (So now she is solely financially responsible for herself and her children)(And what is the #1 subject couples fight about? Money.)
- In the first year after a divorce a women’s standard of living drops an average of 73%.
- Approximately 7 out of 10 women will at some time live in poverty.
- 58% of female baby boomers have less than $10,000 in retirement.
- It’s estimated that only 20% of baby boomer women will be financially secure in their retirement.
What are these statistics telling us?
They tell us that more and more women, especially as they become older, are not educated or prepared to take care of themselves financially.
Women are either depending upon someone else – a husband or partner, a boss, a family member or the government.
3) Avoiding Dependency
You don’t go into a marriage expecting a divorce. You don’t begin a new job expecting to be laid off. But it happens, and today with more and more frequency.
But, Women, if you are depending on a husband, a boss, or anyone else for your financial future, think twice. They simply may not be there.
Too often you may not even realize just how dependent you are until you’re faced with your own personal wake-up call.
In the world of investing the markets don’t care if you’re female or male, black or white, a college grad or a high school dropout.
The markets only care about how smart you are with your money. The key is education and experience. The smarter you are with your investment choices the greater your success as an investor.
4) Control of your time.
One big impediment women have (often more so than men) when it comes to investing is time. This is especially true for mothers who often spend many waking hours taking care of the children.
I hear from many women, “After I come home from work, I have to get dinner ready, help my kids with their homework, and clean up the dishes. By the time everyone’s in bed and I have a free moment to myself, I’m exhausted!”
As an investor you are in control of your time. Investing is something you can do part time or full time. It is something you can do from home, from the office, anywhere.
It is also something in which you can include your children. Many mothers have told me that they take their children to look at properties or potential business investments. And a big plus is that when you include your children in the investment process you are actually teaching them to be investors as well. You become a teacher just like Robert Kiyosaki’s Rich Dad was to him.
5) Increased self-esteem
Personally, I think this is one of the greatest benefits to women investors. It’s not unusual for a woman’s self esteem to be linked to her ability to provide for herself.
Being dependent on anyone for your financial life can lead to a reduced sense of self-worth. You may do things you otherwise would not do if money were no issue.
I’ve seen women’s self-esteem soar once they know how to make it on their own financially. And when a woman’s self-esteem rises, then the relationships around her tend to improve. Her life improves overall because she feels good about herself, and she is making choices that are genuinely true to her.
With every little victory you accomplish, your confidence increases. Increased confidence leads to higher self-esteem. Higher self-esteem leads to greater success, which ultimately leads to the greatest gift of all – freedom.
The gift of investment
These reasons support why women and investing go hand-in-hand. The statistics prove how much times have changed for women and point out that our need for real-life financial education is no longer a luxury, it’s a necessity.
Depending on someone else for your financial future is like rolling the dice in Las Vegas these days. The reward may be there in the end but the risk is steep.
Today, investing is no longer just a good idea for women. It is a must-have. I encourage you to start today.
How to get started?
The first step is to start getting educated. The exact starting point will be different for everyone.
Through the process of getting educated you’ll discover which type of investment suits you best.
Here is a partial list of resources to help you get the education you need:
1) Read Books.
‘Warren Buffett reads 500 pages a day.’
The average CEO reads 60 books a year…
Because they know that the key to success is constant learning.
When was the last time you read a book or a substantial magazine article?
If you’re one of countless people who don’t make a habit of reading regularly, you might be missing out.
There are hundreds of books about money and investing for those of you who are just getting started and for those who are seasoned investors.
2) Invest in educational seminars, workshops, and conferences.
These may be free programs in your areas or classes you pay to attend. Various community colleges, business, community clubs and local investment groups often offer such programs.
Some programs are geared directly for women.
Recently, I attended a Blogging Workshop organized by my mentors.
Pardeep Goyal , founder of Cash Overflow.
Nistha Tripathi , founder of Scholar strategy.
3) Listen to Audio books, Podcasts and CD’s.
Connect your device with your car’s audio system and listen to them as you drive. Take advantage of the time you have sitting in traffic, commuting to and from work, or running errands.
The Audio books and Podcasts may range in subject from money management and investing to personal development.
Your attitude and mindset plays a crucial role in your success with anything you take on.
As Henry Ford said, “If you think you can do a thing or think you can’t do a thing, you’re right.”
I daily listen to these podcasts during my gym sessions. It’s a great way to build body muscle and brain muscle at the same time.
4) Talk with Real Estate, Stock and Business Brokers.
Ask them questions. They can give you a wealth of information. Just be aware that most are there to sell you something, so keep your eyes open.
I have found that the most successful brokers are the ones willing to share information and education with others.
1)There are just as many, maybe more, bad brokers than there are good brokers. To find a reputable and knowledgeable broker ask around for referrals.
- Talk with other investors.
Seek out people who are investing in what you are interested in and talk with them. Again, you’ll probably find that the more successful investors are happy to share what they know with you.
Related: 6 Ways To Make Money In Real Estate
5) Read financial newspapers and magazines.
Magazines can give you a quick summary of what is happening in the various investment markets, economic trends both regionally and globally, and insights into what to watch for in the future.
Here you will get a wealth of information about what is happening in your area. You will quickly become aware of the number of articles that relate to or affect various investment decisions.
Even if you don’t understand all the terminology, keep reading and your knowledge will dramatically increase over time.
Use the Internet
Go online and seek out all sorts of information about the investments of your choice. The Web is an incredible source of quick reference materials, meetings and conferences, investment Websites.
Ask questions. Ask questions.
Remember, women, you have the advantage here. Since you’ve had so little investment education you don’t have to pretend to know all the answers. The more questions you ask, the smarter you become.
Plus, you may find a new mentor in the process.
Watch the financial news programs on TV
Again, you may not understand the technical terms but you’ll certainly learn a loy, and you’ll hear the vocabulary of the investment world.
The more you listen, the more you’ll understand.
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