The Money Coach

The investing woman! Why you should become her!

By Dikonelo Mile

"Give a woman a dollar, and she can put it to good use. Teach her about how money really works, and she can change the world,” says Linda Davis Taylor, CEO and chairman of Clifford Swan Investment Counselors. Why should women invest you ask.

Women are naturally nurturing and caring for their communities. Imagine what powerful changes can happen when women also have the financial resources to take care of their communities. Netflix's show, Self Made: Inspired by the life of Madame C.J Walker , is a great example of why it is important for women to invest in themselves , their finances and dreams.

Women and Investments

Research shows that, out of all assets controlled by women, 71% is in cash. This is because women do not think they know enough about investments and wait until they are older to invest.

It is important to have a strong foundation before investing. This is achieved by adapting finance principles such as saving, budgeting, increasing sources of income and researching what you are to invest in.

Knowing the basics to what you are investing in is key. Remember to always differentiate between saving and investing.

Saving, is putting money away for a specific reason whilst investing is putting money in a financial vehicle/asset, that will financially move you from point A to point B. There are different and many types of investments out there.

Some of the assets you could invest in are:

Real Estate - investing in property that appreciates over time can be good for your portfolio.

Stocks - when you have part ownership in a company and the company performs well, the stock increases in value. There are also other types of paper assets such as bonds and mutual funds.

Running a profitable business - Starting a business which becomes profitable. You can decide to sell the company at a later stage or expand it.

Money Market Accounts - These are interest earing accounts at a bank or credit union.

Investment style

Your investment style is based on your financial goals, time and your risk appetite. You have heard of the saying, no risk, no reward. Just like in life, every new step requires a leap of faith. Investments generally have a level risk attached to them, ranging from low risk to high risk. However even with taking risks, it is important to take calculated risk.

You have to determine if you are an aggressive investor or conservative investor. Aggressive Investments yield higher returns over time with a high risk, whilst conservative investments are stable with lower risk. How long you are planning to invest and your goals will determine your portfolio. Remember no to put all your eggs in one basket.

Dikonelo Mile is Managing Director at Success Tuned, she can be found on: info@successtuned.co.za