5 smart investing hacks for women

It is 2022 and yet the myth of women being bad at investing is at large. The popular media may continue to portray women as risk-averse, spendthrift investors who may tend to let their male counterparts make investment decisions for them. However, the reality is a far cry from that depiction!

A growing number of women are now actively taking up investments to proactively work towards building a financially secure future. Various studies reveal that they spend more time researching the options and making calculated decisions. To the same end, here are 5 fool-proof ideas for aspiring women investors getting started or the ones looking to upgrade their investment game.

1. Prioritize financial literacy

In the words of the famous Warren Buffet, the more you learn, the more you earn. And that is true for any skill, especially financial investments. Thus, as you embark on this journey of financial freedom, commit to spending time every day honing your financial literacy. This includes getting familiar with different financial instruments, various investment strategies, and developing emotional mastery while investing.

2. Remember, the early bird gets the worm!

When it comes to investments, one cannot overemphasise the importance of being an early bird. Simply by the virtue of Compound Interest, as Albert Einstein once called compound interest the most powerful force in the universe ”.You see, it is an interest that you earn over the interest.

For example, two friends, Radha and Meera, were in the same job received a bonus of Rs 1L when they started a new job in 2001. Both had the same career trajectory and had a similar income when they turned 40. But Radha ended up with Rs 1.45 crores more in wealth than Meera! Their wealth differed since Radha started investing early in stocks that gave her a 14,419% return over 20 years.

That being said, do not regret or languish in FOMO if you did not start early. The financial landscape is ever so expanding that there is no dearth of opportunities to maximize your gains. Provided, you start now and be consistent with your investments.

3. Diversify your investments

Yes, it is tempting to bet only on high yielding assets like stocks and crypto or hide in the safety of fixed deposits. However, resist that temptation and instead, diversify your savings. Have you noticed how, when we are traveling or carrying a lot of cash, we keep the cash in different bags? It’s the same with investments. After all, even FDs carry the risk of high inflation or a bank going under. But having a diverse financial portfolio ensures that you would be able to access some liquid funds when necessary, as your long-term financial goals are taken care of.

4. Choose your Finance Guides, carefully!

There is a reason why finding the right Fitness Coach or Business Guru helps us achieve certain key outcomes in life, without wasting much time. It is because these experts have a knack for helping us avoid potential mistakes that we may make in our financial journeys. Furthermore, they keep us motivated and on track. And nowadays, you can choose from full-service brokerage firms to investment advisors to Robo-advisors.

5. Make investing a habit!

So, you are gaining financial literacy and you have diversified your portfolio. Congratulations on taking the first step! Yes, that’s right, the first step. This is not the end of the road, merely the beginning. From this point on, the investments will not run on auto-pilot. You should make it a habit to constantly engage, monitor your funds, and stay on top of your investment game. Of course, having a financial advisor can help you stay focused and motivated to build a financially secured future for yourself. In addition, continue to learn and grow and enjoy the process.

Bottom Line:

Remember that saving and investing are two sides of the same coin. While saving is putting money aside, investing entails development and is, in essence, the road to financial independence. While there are various paths to wealth creation, one thing is certain: there are no shortcuts. You must not only get started as soon as possible but also be prepared to be consistent with your investments.



Views expressed above are the author’s own.



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