Regarding the economy and life in general, women are excelling. They make up about half of the workforce, and more women are graduating from college. Women are also catching up to men in terms of their earning power, and according to CNBC, two out of every five affluent women say the earn as much or more than their spouse.
At the same time, there is one area where women seem to be lagging behind their male counterparts and that’s investing. Countless studies have shown women are either not confident about investing, or they are so risk averse that they’re not willing to put their money in riskier but potentially more rewarding places, including the stock market.
For example, consider these statistics compiled by NextAvenue.org:
- Less than half of women who participated in a study conducted by Prudential said they were willing to take a risk for an opportunity or financial reward.
- The same study showed 56 percent of survey respondents were interested in only guaranteed financial products.
- Finally, about 68 percent of women who were part of the Prudential survey said they were more of a saver than an investor.
When women do have the confidence to invest boldly, they’re often successful in their strategies, but how do they get to that point?
Below are some the easiest and fastest ways women can give themselves the confidence boost they need to start investing, particularly in places like the stock market.
Research and Understand Risk
Along with giving yourself an education regarding the fundamentals of finance and investing, it’s also important to read up and understand risk specifically, particularly as a female investor. Many of the most successful female investors have a comprehensive understanding of risk, and what risk is beneficial versus what they should avoid, rather than taking a blanket no-risk approach to how they invest their money.
Follow Successful Female Investors
There’s really no better way to improve your motivation and your sense of confidence than following the moves of women who are already doing it well. Find blogs, websites and social media accounts of women who are successful investors. Read their stories, keep up with their newsletters and advice, and immerse yourself in their world so that you can not just see how they’re doing it, but also get inspired at the same time.
If you’re a bit trepidatious about investing, you don’t have to do it all at once. Start small, and perhaps invest in a few penny stocks or just put a small amount of money into a mutual fund. Then, as you get more comfortable with everything you can go bigger and bigger with your strategies.
Participate in an Online Class or Seminar
Finally, here are so many online opportunities that allow any investor, including women, to learn from experts and gain valuable experience quickly, that would otherwise take them years to obtain. You can search online for classes, stock trading academies, or even just individual seminars that will let you learn and in many cases, also ask questions and get involved in valuable discussions. The more you learn, the more you’ll know and the more confident you’ll be in your investments.