Women’s financial power is increasing however the majority of women choose to save, not invest with 68% of women’s portfolios in cash or cash equivalents*.
Cash savings are losing women money in real terms
Many women are good at saving. However the problem is that many women choose to save regularly into their bank accounts or Cash ISAs which earn no or very little interest which means that these accounts are losing money in real terms considering inflation is currently at 9.2%**.
Some women need to be empowered to invest their money rather than keep it in cash.
Some women feel like cash is the safe option with no risk, however as per above this is reducing their overall spending power.
Why aren’t more women investing?
Not understanding financial jargon and lack of confidence means many women are simply more comfortable at keeping all their assets sat in cash. Lack of confidence means that they are simply unwilling to take any risks with their hard-earned cash which leads to them not investing at all.
How women can become money confident
Many women see investing as a ‘risk’, of course any investments do come with an element of risk. The value of your assets can fall as well as rise. However, below are three steps that you can use to reduce the amount of risk you take with your investments.
Step one – invest regularly
Investing each month will mean that you benefit from pound cost averaging. This is investing a set amount on a regular basis instead of a large lump sum in one go. Financial markets go up and down each day so this will mean that you are always buying into the market at a different price which should mean that movements in markets and share prices will have less of an impact on your investments.
Step two – diversify
Investing in different companies and markets will mean that you spread your level of risk. If you do not want to spend your time researching fund managers or markets but you want to check if an investment is suitable for your own circumstances, then you can book a no-obligation meeting with a financial adviser at Four Wealth Management. Book online now or call 0117 973 0500.
Step three – consider your long-term goals
Investing over longer periods of time will give your money more chance to grow over time and mean it is much less likely to be impacted by any market dips.
Start investing today
To find out your options with regards to choosing investments that are suitable for your own aims and goals, you can book in a no-obligation meeting with a financial adviser at Four Wealth Management online or by calling 0117 973 0500.
The meeting can be at your home address, one of our offices or on zoom. The meeting will last about one hour and will provide you clarity and a full understanding on all of your options to help empower you to make financial decisions.
*Fidelity’s 2021 Women and Investing Study, 2400 respondents
**Bank of England, ‘What is inflation?’, 2022
The value of an investment with St. James’s Place will be directly linked to the performance of the funds selected and may fall as well as rise. You may get back less than the amount invested.
An investment in equities does not provide the security of capital associated with a deposit account with a bank or building society or a Cash ISA.
The levels and bases of taxation, and reliefs from taxation, can change at any time and are dependent on individual circumstances.
