While the investment world seems to be dominated by men, women can have a great advantage in achieving financial independence.
The Woman Post | Ariel Cipolla
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During this last period, the world's interest in investments has grown. This happened especially for cryptocurrencies, such as Bitcoin. For example, CNBC highlights that people are obsessed with Bitcoin because there is a probability that the asset will reach really high values in the future, such as $146,000 per unit.
This makes it a very interesting financial asset with high projections for the future. Moreover, if we take into account that the growth during the last years has been sensational, everything seems to indicate that the trend will be taken advantage of by more and more men... but also by women.
Forbes indicates that, contrary to what many believe, women are better investors than men. The problem is that they do not always seem to have an interest in investing, because they have little knowledge of the subject or believe that it is overly complicated or something they will not be able to learn enough about.
This explains why, for example, only a quarter of women in the United States invest in the stock market. However, they could take special advantage of it and obtain better returns. Let's look at why women could and should start investing to achieve financial independence.
Investment and women
A study by Warwick Business School indicated that female investors could generate hundreds of thousands of dollars more in retirement than their male counterparts. Basically, there is a belief that women are "natural born spenders," leading them to believe that an investment in the stock market or a cryptocurrency is part of that same "wasteful spending."
However, none of that seems to be true. In fact, these studies indicate that women, when investing, spend more time researching all their options. A woman interested in investing will have better control of risk, unlike men, who seem to be the ones obsessed with making exorbitant profits, but also with a greater chance of loss.
An investment in a girl child is an investment in the society. Train the girl child and build the nation. #YSMANG@unwomenNG @GirlEgi @youthhubafrica @EVA_Nigeria @getittogetherNG @bekaji @the_odunola @FoundationTft @Intee_ @UNFPANigeria @FMWA_ng pic.twitter.com/x4BLCHJ6s1— Amaka The Women Leader (@Chimamakaah) April 12, 2021
At the same time, women have a fundamental quality: calmness in down markets. This makes them protect losses when the market suffers a momentary downturn, while men tend to despair or be overconfident in their own arguments.
Since many of them do not accept losing, they believe they will always be right and make much riskier investments... but when they notice too many warning signs, they prefer to give up. That's why, over the long term, women investors tend to have better average returns.
Curious research from Hargreaves Lansdown, the UK's largest investment platform, also indicated that women investors had an advantage over men. Basically, the average return was 0.81% more than them. If this pattern continued for 30 years, women would have a portfolio with 25% more value than men.
Women don’t need Tik Tok videos or fashion models to get them into #Bitcoin— Justine (@MsHodl) May 8, 2020
They need easy to understand information and tools to make them feel confident in their investment. Women by nature are less “risk takers.”
That’s how nature helped you all survive your childhood.
So, if the statistics encourage them to invest... why don't they do it? Well, one of the main issues seems to be a lack of self-confidence. A Fidelity Investments Women and Money Survey found that only 9% of people believe that women were better at investing than men.
Also read: HOW IS THE WORLD GOING ON PAY EQUITY?
At the same time, as the industry has always been dominated by low-profile men, women feel that there are not many "role models" to encourage them to invest. For this very reason, they take refuge in savings: as they are more aware of the risks, they tend to take much more conservative attitudes.
Precisely are the women -who have historically been labeled as "spendthrifts"- who have a much more rational attitude towards finances. However, this does not mean that they should not take advantage of their qualities to invest, quite the contrary: they should eliminate these prejudices and start to be aware that their attitudes are favorable for investments.
At the same time, contrary to popular belief, there are women who managed to transcend in the personal finance arena. If you research the stories of some important personalities, such as Geraldine Weiss, Muriel Siebert, or Abby Joseph Cohen, you will be able to understand that the world of investments is very broad and that all women can achieve financial independence.
Betting on the stock market, investing in cryptocurrencies with a track record (such as Bitcoin), or in assets with a huge projection (such as Ethereum) can be excellent ways to use part of your savings. Any woman can do it and it's completely accessible: you just need to have a smartphone. If you are characterized by good sense, you can start studying financial markets to understand the best times to buy or sell an asset.
So, you will be able to make projections to see how the assets could evolve. Remember that you will constantly be learning, so it is essential to nurture yourself with all the knowledge you have available online. If you change your perspective from saving to investing, thinking about long-term gains, you will be able to achieve great financial independence.