Millennial women are said to be more confident with their money, investments, and being more financially independent than their predecessors ever were. This makes me think about the women that inspire me professionally. These women I’m talking about got me out of my office in my basement and motivated me (whether they know it or not) to bring my knowledge of the market to the virtual classroom. They brought me back to my roots: teaching investing to the masses.
Women like Mariah Coz, the Femtrepreneur. She teaches about selling courses online and how to teach everyday people about your particular niche. Megan Minns, Mariah's right-hand lady. Megan made creating my website and blog so easy that I could actually focus on what's important to me; investing. Amy Porterfield and her wonderful way of encouraging through podcasts.
Ladies, you are all incredible, driven, ambitious and oh, by the way, the women I mentioned above, they have created multimillion dollar businesses.
What does this have to do with the millennial ladies out there is this; you are all so creative and independent. You’re building careers and businesses like never before and I couldn’t be more impressed. What I know from the conversations that I have on a daily basis and the feedback I get from my Blog, clients and students is this; Ladies you really should have more confidence in your investing skills. I have 5x more women asking questions about how to manage their money, how to better invest in individual stocks and invest for the long-term than I do guys. Hey, what can I say, fellas, we let our ego’s get in the way sometimes. Investing is about learning a few fundamental things and sticking to them without emotions. The key and this is why women tend to be better investors than men, they admit when they are wrong and correct their actions MUCH faster than we do guys. Sorry, but it’s true. The market does not give two sh*ts what you want it to do for you.
So what are the common issues I see and hear about on a weekly basis? Let’s look at a few.
1. Ladies, you are wonderful savers. However, at some point, too much cash in the bank is a problem. With interest rates so low, that money could be put to use elsewhere to help grow and build a foundation that cannot be rocked.
The comment I hear most when this issue is addressed is “I don’t know what else to do or how to invest”.
I’ve heard this so many times over the years that I created a free Financial foundations course to help anyone that is stuck or unsure how to invest but without the hours of research needed to properly invest for the long-term.
2. Lack of Financial literacy.
Many of the students and readers I talk to, just do not understand the proper “lingo”. Wall Street and brokers love to throw around terms that make them sound super smart. The reality is, anyone can learn the basics of investing and as Peter Lynch once said, “if you passed 5th-grade math, you can be successful at investing”. I encourage everyone to spend a little time reading about Mutual Funds, ETF’s and basic Retirement planning. The main goal here to understand the basics so you are not “sold” on a particular investment that just doesn’t fit your overall goals.
3. Analysis paralysis.
Many investors and yes this is usually the women in the group (sorry don’t smack me ladies) tend to be perfectionists. I understand this is important stuff but the Stock Market can zig when you think it should zag and zag when you think it should zig. Waiting for everything to be perfect is NEVER going to happen so gather your information, invest in a Growth Domestic Stock fund or U.S. Index fund and let the power of compounding do its thing. It’s more important to start as soon as possible and invest consistently month in and month out.
4. “I need more money to Invest”
Truth be told, the amount needed to invest can be as little as $50/mo. Again the important thing here is to just get started. One of the first things I look at when counseling clients is their Workplace retirement plan. If they have a 401(k) at work I will ask what the company match is. More often than not, your company will match your contribution up to a certain percent. For instance, Company XYZ will match your 401(k) contribution dollar for dollar up to 3%. I would immediately suggest at a minimum, contribute 3% of your paycheck so the company would deposit an extra 3% into your account. That’s free money! The best part is, it’s taken directly out of your pay BEFORE taxes and it’s done automatically. You can’t believe how fast that builds up.
5. Lack of Confidence
Over the past two decades working with women and their money, I’ve realized that a woman’s net worth is impacted by her self-worth and the reverse is also true. When a woman feels more confident about her money, she then has the confidence to go on and work with a Broker or Planner, because she is now empowered, educated, and confident with HER money. Of course, my goal is to educate you so you never have to ask advice from Anyone. :)
The bottom line is this, Ladies, treat investing like everything else you do in life, attack it with confidence, learn the basics and use investing as another tool to create the life you want. Look at the life around you that you’ve created, you all are amazing. Investing is no different. You’ll be amazing at yet another area in your life and it will take you places that you only dreamed about.
Until next week, comment or email me other topics you want to cover in the future.
Welcome to the Nerdery,