What is your definition of having a good time in your 20s? I’d say it is to start investing in your 20s, the earlier you start, the better. The saying goes that the best time to start investing was yesterday. The second-best time is today.
But, Myth: “Women aren’t good investors”
Fact: Women have self-doubt (yes, I said it). But when we do invest, we’re very good at it.
And I have research to prove it. Various reports consistently confirm that women outperform men by a considerable margin when it comes to investing. Women’s investment returns were 0.4% higher than men’s, on average. There are a few reasons women tend to broadly outperform men, first is that they trade less, allowing them to ride out market lows and avoid extra fees. They also tend to invest more consistently, which means they aren’t trying to time the market. And they know how to keep their emotions in check.
This brings me to the main point which is, more women need to invest. But how do you go about it?
The earlier you invest, the more wealth you can accumulate. That’s because compound interest allows you to earn interest on your interest. Understand the importance of compound interest and the time value of money.
Make contributions automatic
You don’t need a ton of money to start investing, but you do want to regularly contribute to your account. Automating your investments will ensure you not only keep building your balances but that you are investing no matter what the stock market is doing. You can easily do this using the emandate feature.
How can you contribute to encouraging women to invest?
You can start by gifting stocks/ETFs to encourage more women to start investing.
So start investing with your friends. And get the convo going. What’s your favorite ETF/stock? How have you been successful in saving?
Do you think women are better at investing?