Investing is an important skill to learn especially for women. Sadly, investment education is neglected in our schools. That is why it is important for women to self-educate themselves.
Maintaining a comfortable standard of living throughout your life tends to be more difficult for women. There are two main reasons behind this. One is the lower pay ratios most women earn compared to men. The second is the longer life spans of women.
Unfortunately, both of the reasons greatly impact a woman's financial life. Making less pay leaves less extra money for investing for the future. And, of course, the longer you live, the more money you will need. On top of this is the fact that a woman's social security benefits will be less due to the lower lifetime earnings.
So what can we women do? Gain knowledge and skills to invest and manage our money the best we can. Advocate for more equality in pay. And work towards requiring better financial education to be taught in schools so our daughters, sisters, and the next generation of women are more financially literate.
It is important for each woman to know her financial situation. This applies whether she is on her own or in a relationship/ marriage. You need to know what money you have and where and how it's invested even if your partner handles the finances.
Another important step is to have an idea of your goals. An investment plan can help with this. It does not have to be a big plan or very formal. Just knowing where you want to go is the biggest financial help.
It is important to take advantage of any retirement plans you are offered. An Ira is just as beneficial. Investing in these tax-deferred accounts allows you to keep more of your hard-earned money. Why pay the taxman when you donít have to?
Read about money and ask questions. There are no dumb questions. Do not let anyone make you feel intimidated. The experts started out knowing nothing about money. They know about it now because they learned, got experience, and asked lots and lots of questions.
Finally, start by putting a small amount of money aside. Then try a little investing. An index fund is your easiest baby step. Put a little in each week or month and get the experience of investing. You'll be richer for it - in money, knowledge, and confidence-building skills.
May I recommend my ebook, Investing $10K in 2013