Money Musings 💭 My 3 best investing tips
Women are still investing less than men even though studies show we’re better at it when we do.
While there are many valid reasons women are investing less than men… think wage gaps, pink tax, higher interest rates, the need for more emergency funds, a male dominated investing landscape, and the list goes on and on, I’m very passionate about getting more women investing.
Why?
When we don’t invest for our long-term goals, we miss out on tens of thousands - if not millions of dollars over the course of our lifetimes. Millions!
So let’s get you investing. 💰 And if you’re already investing, AMAZING, these tips will still be helpful.
It’s better to start, than to time the market. "Timing the market" means waiting to invest until you think the market is "down" or it’s a "good" time to buy. Instead of timing the market, getting started and consistently investing over time is the way to go. Research backs me up on this!
Be consistent and automate. This happens naturally with our 401(k)s because we contribute with each paycheck over time. It’s also possible to set up an automatic transfer to an investment account each month or each paycheck. Automating is a big win because it helps us prioritize investing how much we choose without the work.
Diversify to reduce risk. To have our money grow, it’s important to take on some risk - because generally, more risk = more reward, as long as it’s "smart" risk. A way to be smart about risk is to diversify. This is a fancy way of saying we’re not putting all of our investment eggs 🥚 in one basket.
For example, by investing in a fund or ETF, I am investing in 100’s of companies vs. just 1. It’s an easy way to diversify because I'm not depending on that one company’s success.
BONUS: The riskiest part of investing is that we’re human. We sell when our investments are down, to cut our losses, or we buy an investment at its peak price because it’s what all of our friends are doing and we don’t want to miss out. How do we combat this? Check out this recent Money Musing where I talk about staying the course in a turbulent market.
I created this free investing course with theSkimm called Minding Your Mindset. I walk through how your money mindset impacts your investment strategy, how to get started and much more. You can watch here.
MONEY MOVE OF THE WEEK
ADD THIS TO YOUR MONEY PARTY.
If you are keeping up with your monthly Money Parties, AMAZING! 👏 If you’re not, or aren’t sure what a Money Party is, you can learn what one entails and how to throw one here!
I’d like to add a quick step to your Money Parties 🎉 that will be a game changer.
Finish the party by celebrating something you did well this month, big or small.
Focusing on a win and taking the time to celebrate it can increase motivation and encourage the habits that are working.
Let’s start now! Hit reply and let me know one thing that went well this week or month. I’d love to celebrate with you! 🥳
YOU GOTTA SEE THIS
CREATIVE GIFT GIVING.
It’s the gift giving time of year! And if you are in the market to purchase someone a gift, check out our gift guide and support an amazing women and BIPOC-owned business.
If you are feeling like your holiday budget is already bursting at the seams, I hear you. With inflation, things are more expensive all around. And that means less money available for the holidays (which will probably cost more money). If you are looking to get creative with some friends and family, here are some ideas:
Make a saving, investing or debt pay down swap. My sister and I made a pact a few years ago to save in each other's honor instead of getting each other gifts. We transfer a specific amount of money to our savings and celebrate it together.
Make a gift budget pact. If you’re not ready to pull the plug on gifts altogether, you can make a pact with said friend or family to tone down the gifts this year. You might be surprised how relieved others are when you bring this up. 😌 They’re feeling the pressure too!
Host a white elephant exchange. Hosting a gift exchange with a group where everyone buys one gift (and you can put a dollar limit on it), is a great way to add some fun while reducing the amount of gifts you need to buy.
Purchase an experience. Sometimes spending time with your bestie is the best gift of all. Plan a fun afternoon for the two of you, your treat. You can include some free activities (oh hey frugal joys!) or make it a bit more of a splurge.