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Women, it is time to step up our money game! While several studies show that women are better than men at saving money, according to a recent survey on Women and Investing in Europe by the Mobile Bank N26, women invest 29% less than their male counterparts. However, the results also reveal that while they do not currently invest at comparable rates to men, there are reasons to be optimistic that the landscape is changing, with 70% of the women surveyed saying they want to invest more in 2022. 

Inspired by these findings, we created a 4–step guide to becoming a powerful female investor. So, if you want to be part of the change, and hopefully make some money while you are at it, keep on reading!

4-Step Guide For Female Investors

Step 1.

FIND YOUR MOTIVATION

Once you make sure that you have enough savings for your monthly expenses and an emergency fund, there are plenty of motivations to start investing. 

First of all, investing is a great way to build your family’s financial security, hedging against inflation and financial crises as well as growing your money long term. Looking further into the future, investing can also be a helpful way to save more for your retirement. 

If you’re thinking more short-term and are ready to take some risks, investing can also be a great way to grow your money very quickly. Investing can also open doors to more business and investment opportunities and connect you with new people. 

Last but not least, investing in a cause you believe in allows you to use your savings to support something that you care about. Finding your personal motivation for starting investing will help you to choose the best option to reach your goals. 

Step 2.

KNOW YOUR OPTIONS

To give you an idea of some of the investment options available, we can analyze the preferences of the women interviewed by N26 who currently invest.

Bank products—such as interest-bearing savings accounts—are the preferred investment option. They allow you to get back some interest on your deposit and at the same time, they grant you unlimited access to your funds. 

Other popular options include traditional, ‘safer’ investment products such as insurance and real estate. 

In the top 3 preferred products, we also find cryptocurrencies, proving that women are also up to date with the latest investment trends and are willing to take bigger risks for higher returns. 

Step 3.

THINK LONG TERM & DON’T LET EMOTIONS GET IN THE WAY

When we refer to thinking long term we are not focusing on the investment products you choose but more so on your general attitude towards investing. 

One of the most important rules for investors is not to be concerned by the short-term fluctuations of the market, especially when investing for the future. 

When you let your emotions and concerns take over your investment choices, you are more likely to pull back and actually lose out in the long run. Often, even if it feels like you are losing out on money in the present, you will be surprised at how much you earn in a few years. 

Always keep in mind that it’s important for you to have enough confidence in your investments to not let fear impact you, especially when it comes to taking some risks. 

All investment carries some form of risk but savvy female investors embrace an appropriate level of risk in their investments in order to get a bigger return. What you need to control risk is a balanced portfolio, including different types of investments rather than channeling all of your money into one place.

Step 4.

TALK TO A FINANCIAL ADVISOR

Still not sure how to start investing? Talk to a financial advisor. A professional will help you to set your goals, create a sustainable financial plan and get the most out of your investments, taking some calculated risks and learning how to read the market changes.

Ask questions, discuss possibilities, and try to understand what this person does with your investments and you’ll start to pick up on exactly how investments operate and how you can make them work for you.

Featured Images by N26

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