5 Tips for Women Getting Started With Investing
Investing isn’t just for men. Women have always been known for their expertise in managing money, but when it comes to investing, there’s a perception that men do it better, which isn’t true.
There are many good reasons to look into investment as a woman. For one, women still make 12 percent less than men. Investing can be a great way to make up some of the difference and put extra money aside. Here are five tips for investing for women if you’re looking to get into it for the first time.
1. Educate Yourself
An excellent first step for any investor is to learn the basics. If you’re new to investing, look into blogs, books, and instructional videos to start the process of learning more. Research common investing terminology and the pros and cons of different investment types, like stocks, bonds, retirement funds, and mutual funds.
2. Set Financial Goals
You’ll want to note your current income and expenses to decide what you’re willing to set aside as an investment. Once you’ve done this, you can create an investment plan that will work for you based on your particular goals. Common objectives for investment include retirement, travel, and house buying.
3. Monitor Your Investments
Keep track of how much money you have invested and where it is located. Tracking your investments will allow you to check up on trends occurring in those particular markets. If anything changes, you can alter your investing strategy to adapt.
4. Learn to Take Risks
One of the differences between how women invest and how men invest is that women are more prone to risk aversion. Many women try to avoid investing in situations with high uncertainty. Young investors are often conservative with risk too. As you take risks, educate yourself to find which chances are likely to gain the best reward to avoid making emotional decisions.
5. Stick With It
Investing is a long process, and you probably won’t see results immediately. Instead, it’s essential to focus on the long term. Compound interest can dramatically increase your funds, but it takes time to build up, so trust the process.
Work With a Professional Investor
Another way to learn more about investing money as a woman is to seek professional help. Investing might seem overwhelming, especially if you’re getting into it for the first time, but an advisor can work with you to establish financial goals and create a plan that fits your individual situation.
If you’d like a professional advisor to assist you with establishing an investment strategy, Fort Pitt Capital Group can help. Learn more about our individual financial services and how we will create a unique plan to fit you.