When it comes to managing money and building a secure future, a reasonable step to take in this journey is preparedness, especially for those of us who aren’t seasoned investors. Historically, women have felt less proficient when it comes to finance than men,1 which can impact our investing confidence. But the good news is that you don’t need to be a financial expert to make your money work for you.
Edward Jones offers esteemed advisors to help women investors, who now control a third of the total household financial assets,2 continue their journey to financial success. In this article, we’ll explore four simple strategies to help grow your financial knowledge and confidence.
Educate yourself
Between career growth and seeking higher education opportunities, being financially savvy might not be top of mind. But, at the end of the day, deepening our financial knowledge should be a priority. You can do this by paying attention to financial market news to monitor trends and investment performance. And user-friendly budgeting apps can help you manage your money better.
To boost your confidence as a woman investor, consider these learning opportunities:
•Financial literacy courses and workshops: Many organizations and community centers offer free or low-cost financial literacy workshops. These workshops cover topics like budgeting, investing and retirement planning in a beginner-friendly way. As a leader in financial literacy, Edward Jones has helped educate more than 500,000 learners over the last three years through our EdWords of Wisdom initiative.
•Educational apps: Explore user-friendly apps designed to teach you about budgeting, investing and saving. These apps often provide real-time tracking of your financial progress.
•Join women’s investment groups: Many investment clubs and groups specifically cater to women. These supportive communities offer a safe space to learn, ask questions and share experiences.
Tailor investments to your goals
Understanding your investment goals is important, and it’s easier than you might think. Start by adding up your monthly expenses (rent, bills, groceries, wellness/self-care routines) and subtracting that from your income. What’s left is your spending money for the month. Instead of spending it all, consider setting some aside for savings or investments.
Your savings goals could be as simple as:
•Building an Emergency Fund: Start by saving for unexpected expenses like car repairs or medical bills. This can help with feeling financially secure.
•Saving for a Dream Vacation: A 2023 Pew Research Center survey showed that even if couples earn similar amounts, men spend more time on paid work and leisure activity.3 But that doesn’t have to be the norm. If you’ve been dreaming of a special trip, set a goal to save a certain amount each month to make it happen.
•Retirement Planning: Women are more likely to live longer than men,4 so it’s particularly important to start thinking about your retirement goals, including when you want to retire and the kind of lifestyle you’d like to have. Your investments can help you reach these goals. Plus, traditional retirement accounts are generally tax-advantaged.
•Buying a Home: If homeownership is on your list, saving for a down payment is a great investment goal.
•Using Your Investments to Create a Source of Income: You can aim to generate additional income through investments, such as dividend-paying stocks or rental properties.
Working with a financial advisor can help you choose investment options that align with your specific goals, whether it’s growing your money, generating extra income or working toward any other financial milestone you have in mind. With Edward Jones, we’ll aim to foster a one-on-one relationship, which can help tailor your investments to match your unique aspirations and financial situation. So, start the financial journey today.
Manage risk and diversify
You’ll want to assess risk tolerance every couple of years. To do this, you can use online tools or talk to a financial advisor to find out how comfortable you are with different levels of risk. Once you discuss your comfort level with an advisor, you can determine whether rebalancing your portfolio is necessary.
Your financial advisor can guide you in choosing the right mix of investments that align with your risk tolerance and long-term objectives. This approach can help make investing less intimidating and more manageable, allowing you to focus on building your financial confidence.
Take action with small steps
Gaining confidence as a woman investor can begin with simple moves. Think about selling things you no longer need: Clear out your closet by selling old clothes online, and you’ll not only make some extra cash but also reduce waste. As women investors, we have the power to take control of our financial futures, and it doesn’t have to be complicated or feel overwhelming. By including these four straightforward strategies in our financial journey, we can build our confidence and grow our investments. Remember, it’s never too late to start.
Start your journey with Edward Jones.
Sources
1U.S. Bureau of Labor Statistics, “Gender gap in financial literacy transcends national borders,” March 2015.
2The Federal Reserve, Federal Survey of Consumer Finances, 2019.
3Pew Research Center, “In a Growing Share of U.S. Marriages, Husbands and Wives Earn About the Same.” April 2023.
4Our World Data, “Why do women live longer than men,” November 2023.
Investors should understand the risks involved of owning investments, including interest rate risk, credit risk, and market risk. The value of investments fluctuates and investors can lose some or all of their principal.
Edward Jones, Member SIPC.
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