“Women save, and men invest!”
That’s what most of us have been hearing all our life. Well, as downgrading as it sounds, it is an unfortunate reality. Even today, women who have money tend to save it rather than appreciate its value by finding ways to multiply it.
The ever-evolving dynamics of the world require women to earn equally, but earning itself does not get you financial stability. It would obviously help if you had a passive income to fully take care of the expenses in the current times of massive global inflation.
Women are well-familiarised with the concept of investing, yet they don’t actively engage in it. Studies suggest that the ratio of male to female customers among the top 10 DIY investment platforms is reported to be 68 to 32. This alarming statistic should persuade women to understand the importance of financial freedom through investment.
Keep reading to find out why investing is a necessary part of personal finance for women.
INVESTMENT VS SAVINGS
Saving means putting money aside, typically in a bank account. People generally save for achieving a particular goal, like buying a car, a MacBook, or making a down payment. Savings gives you ready access to cash and spending with a low risk of losing value.
Investment entails using some of the money to make it grow by buying assets that increase in value over time. People typically invest to achieve long-term goals such as children’s college funds or post-retirement period.
However, the value of cash that sits in a savings account depreciates over the years, which means you lose money when you are not actively growing your savings. Savings can benefit you for short-term expenses, but investment covers you in the long run. Do not miss the opportunity to grow your money and live a financially stress-free life.
TOP 5 REASONS WHY WOMEN SHOULD INVEST
Typically women are comparatively less exposed to the world of finances and investments, and even though many women are striving to achieve financial independence; investment is a concept still alien to them.
Here are the top 5 reasons why women should invest.
Countering Pay Gap
The pay gap between men and women has been prevalent for a long time, studies have proved that women, even when in the same position as men, are typically paid less.
Lower income hinders a woman’s ability to achieve her goals and ultimately makes them financially dependent on someone. Therefore, women should avail investment opportunities to compensate for the pay gap and eventually achieve financial freedom.
Battling Fewer Work Opportunities
Women are offered lesser opportunities, especially in executive positions, which translates into less income. Moreover, women are (sometimes) forced to take years-long career breaks to bear children and raise families. This collectively calls for lack of financial independence or requires a lifetime to achieve one.
In cases like such, the right investment strategies allow women to make stress-free life choices without financial constraints.
Savings For Retirement
Unless you earn an exorbitant salary from the very start and can save half of your paycheck, your post-retirement phase is usually never sorted. And with the rising inflation and impending series of pandemics, it is practically impossible to save without investing.
Retirement means no source of income; increasing expenses, medical bills, overpriced commodities, and other costs, which can make it difficult to sustain a comfortable lifestyle on savings alone.
Unless you want to depend on someone else to care for your financial needs after retirement, investment is your only way of living a peaceful life without financial worries.
A discussion on financial resources is incomplete without discussing the concept of financial freedom of women. Financial freedom empowers you to make life choices as you will, not depend on anyone for your needs, and not wait for anyone to help you afford your favourite things.
While savings can help you achieve that freedom to some extent, it doesn’t last long. Alternatively, investment is the best option to secure your future. It will empower you financially and help you build a lifestyle of your choice where there are no financial constraints or worries.
Who wouldn’t want their money to work for them and grow without any active and additional efforts? That’s how investment benefits. Passive income grows faster than regular income, which means financial freedom at an early stage.
Investment in the form of passive income is necessary to multiply your wealth and secure your future. It can also be an active source to achieve your financial goals without worrying about spending all your savings.
This is the best option for women who want to stay home and raise families while also sustaining financial stability.
All in all, women must participate in financial activities like an investment to secure a stress-free lifestyle. Women who manage their finances on their own have a sense of liberty and tend to be more confident-both which are essential traits to survive in male-dominated societies.
Investment has plenty of benefits. To secure a stress-free future is the biggest of all, and who wouldn’t want that?