SouthOfMetro|According to a recent survey, millennial women are falling behind the confidence game with 21.7% of surveyees stating they lacked confidence when it comes to making the best financial decisions; only 11% of men said the same thing. This is almost twice as much making it doubly worrying.
So, what can young, Y-generation women do to boost their confidence and step up their financial game?
Read these smart tips below and find out!
Don’t Wait For the Perfect Opportunity — Create One
When it comes to investing, the main problem women have is, well, not investing! According to a survey conducted by Ellevest, 71% of female assets are in cash. Meaning, they are good at saving money but not at investing it.
Therefore, you need to realize one thing — there’s never going to be a ‘right moment.’ Today you’re paying off your student loans; tomorrow it’s your mortgage, etc. If there are no opportunities present, you need to create some for yourself.
What’s more, cash provides a false sense of security. Without any capital growth on your dollars, inflation will slowly but steadily eat your money away. In the end, you’ll be left with less value then when you began. Hence, you need to put your money to good use; don’t just let them gather away dust.
Diversify Your Portfolio
“Never put all your eggs in one basket,” or so the old saying goes. Instead, you want to diversify your investments as much as possible. That way you won’t lose all your money if you make one bad investment. Now, there are plenty of options out there, including classics such as real estate, stocks, bonds, etc. Still, there’s yet another form of investment that’s much simpler and easier to get into than any of these — the foreign exchange.
To get started with forex trading all you need is a reputable broker and an exceptional trading platform with good support. For instance, the Ever Forex trading platform has been on the market for over 13 years and offers the best deals and lowest spreads. More importantly, they have superior analytical technology which is crucial for newcomers who want to learn the ropes of the trade (quickly). In addition, there’s also a free demo version that will help you get into forex trading fast and risk-free.
Start Saving Early
When it comes to opening a savings account, you need to start early. After all, you’re a woman — you’ll live longer. Men don’t need as much money saved up as their life-expectancy is somewhat shorter than yours. Additionally, there is also the matter of compound interest.
In a nutshell, simple interest only takes your initial amount into consideration, whereas compound interest calculates your profits as well; in that sense, it can be viewed as interest on interest. Hence, it doesn’t take a degree in rocket science to realize that you can save up more money that way if you start early; the sooner the better.
For example, with a $100,000 deposit and a 5% interest rate, simple interest would net you some $50,000 over a 10-year time frame, whereas compound interest would earn you around $63,000 for the same duration.
Automate Your Finances
Apart from money, finances take a lot of emotional investment as well. For instance, to keep your savings account up and running — and your outstanding student loan at bay — you need to make some sacrifices. This includes not buying that car you’ve always wanted, limited travel expenses, and a bit more frugality on your part in general. Therefore, in some weird twist, you are your own worst enemy, when it comes to saving money.
Now, the best way to counter this issue is to automate your payments on your savings account. That way you won’t say “oops” when you miss out on a payment due to that new car parked in front of your garage. In essence, funds will automatically be transferred from your bank account into your savings account each month, denying you any chance of wasting them on something else entirely.
At the end of the day, it’s all about confidence. Men have more money because they invest more. Remember: he who dares, wins.