Raise your hand if you think investing is confusing and have no idea where to start? We see you, and we are writing this just for you. Did you know that 72% of women don’t feel confident about selecting financial investments on their own? And 62% of women say they would like more knowledge so that they can make smarter decisions (1).
As a Money Bitch, we want to empower you to take ownHERship of your financial future and make the money moves for the life YOU want to live. After reading this post you won’t just be curious on why you should invest, but you will confidently understand the importance of investing and the next step you can take, right now!
So what the hell is investing, anyway??
Investing 101 – Why You Should Start Investing
Investing is a significant component to building your wealth because it has the potential to earn a return and over time, allows wealth to grow. Why is this important?? Inflation. You need your money that you have saved up to earn some money! Every year on average the cost of goods and services we buy every single day goes up 2-3%. The things you buy now will cost a little bit more next year. The first reason to start investing is retirement! By not investing money and keeping money sitting in cash, it can lose buying power, meaning you actually lose money! By investing the goal is to hopefully outpace inflation and the rate of return will depend on what you invest in!
It is important to save your money for a long period of time for what might seem is too far away to worry about: retirement! This is the #1 reason investing is important! But the #2 reason is while you hustle at your 9-5 job, the money you earn can be invested making MORE MONEY! This happens by the compounding growth of earnings + dividends. Investing can be complicated but is something you should do and ask questions about to own your future!
Know Your Goals
Now that you know why it is important, the first thing to do before you invest is to define your goals and make sure you are financially prepared. Ask yourself what are you planning to use this money for? When will you need the money? Having answers to these two questions is essential because it is important to invest according to your timeline and goals. You do not want to put money in investments if you will need it in the near future. For example, if the money will be needed in a few months from now it will be invested differently than if your goal is to save for retirement. Plus, you never know what can happen, which is why we stress the importance of having a strong emergency savings!! You should have 6 months to a year somewhere saved in case of an emergency instead of having to borrow from your investments. There can be fees, taxes, penalties, plus it may not be the best time to pull money out depending on the market. So get to saving before you invest and write out your goals!
The Market & Patience
Besides being financially prepared and clarifying your goals, we want to prepare you for how the market works so you can make rational money decisions. Some days the market is up and other days it is down. You cannot predict when the market shifts, but if the market does drop, be patient and do not panic!
When the market drops and it looks like you lost money, you will miss out on the opportunity for the market and growth to come back if you decide to put everything in cash. The market will probably come back relatively quickly so before you invest, know what your risk tolerance is.
Are you comfortable watching your investments drop, with the potential to come back? Knowing your risk tolerance and having an understanding of how the market works allows you to be intentional about the money moves you can make to have the life you want.
Act Now & Own Your Future!
Are you ready to own your future and make positive money moves, like investing? Well we have got a deal for you! Join us on October 15th @ 7:00 pm, and we will teach you how to get more out of your money so YOU CAN OWN YOUR FUTURE! We created our Own Your Future- How to be a #MoneyBitch Masterclass to empower you to take ownHERship and boss up your money skills to achieve your goals! We will share with you everything you need to know about becoming a #MoneyBitch… for FREE! Yes, for free AND virtually so you can enjoy it from your own home! We will touch more on the importance of investing and how we can help you get started. The first step you can take, right now, is click this link & get your FREE ticket for our Masterclass! Your ticket will get you access to our private zoom link for the event. Got any questions? Let us know here! We invite you to join us on 10/15 at our free, virtual Masterclass and take ownHERship of your financial future!
(1) Chaikin, Sandy Betner. “5 Shocking Facts about Female Investors.” NASDAQ.com. July 07, 2015. Accessed September 29, 2020. https://www.nasdaq.com/articles/5-shocking-facts-about-female-investors-2015-07-07.
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