“Don’t be intimidated by what you don’t know. That can be your greatest strength and ensure that you do things differently from everyone else.” Sara Blakely (Power women, founder of intimate apparel company Spanx)
Before we talk about investing, we wanted to share some very exciting news – Vestpod founder Emilie Bellet has been featured in “Women in FinTech PowerList 2016”, which is put together by Innovate Finance. We couldn’t be more flattered to find ourselves alongside such an impressive array of inspiring female entrepreneurs that are currently shaping the the FinTech sector. Hats off to Emilie, and everyone else that made the list
Now, back to our topic du jour. Is investing as a means to build wealth one of your life goals? We wouldn’t be surprised if your answer is a resounding “nope”. A recent BlackRock survey showed that 94% percent of women identify meaningful financial goals for themselves; from paying off credit cards to starting a business. And only 28% said that growing their wealth was a priority. Great stuff, but how do you achieve the long-term goals without growing wealth? It’s tricky, and that’s where investing comes in.
The low-down: Investing as a necessity
There is a common misconception that investing is a luxury. We’d argue that investing is in fact a necessity – and you don’t need to be a millionaire to start. In fact, the earlier you start investing long-term, the better your chances to see lucrative returns.
First, though, you should identify your goals: are you saving for stylish retirement in the Cote d’Azur? Your children’s university fees? Or, perhaps, you want to make a social impact and donate to a charitable cause? If you pick your investments well and are prepared to invest in the long-term, your financial dreams will eventually turn into a very welcome reality.
Still worried you don’t have enough confidence or knowledge to start? Don’t be, because the statistics are on your side. Female investors may be less confident, but actually make better investors than men.
Off to you: Let’s get started
Alright, so we’ve (hopefully) convinced you that investing is hugely important in helping you achieve your goals. There are a couple of things you need to get out the way before you start: make sure you have paid off all your debts and that you have a short-term emergency fund.
Next, decide on an investment strategy. Set clear goals: are you investing to protect your capital, gain additional income or grow your wealth? How much risk are you willing to take? Are you looking for a short-term or a long-term investment? Most financial advisors recommend investing in the long-term. It may also be worth trying to determine what type of investor you are.
Ready to give it a go? Take a look at how you can invest your first £1,000, find out more about ETF’s, shares, robo-advisors and the costs of investing in this article on our blog.
The bigger picture: Investments in a post-Brexit world
We know how daunting it may be to invest for the first time in a post-Brexit/Trump climate, with market indices in the US and UK hitting all-time highs but also experiencing sharp falls and bouts of volatility. The truth is, the nature of equity investing is always going to involve a level of risk, but it is, of course, understandable that investors may be concerned about such forceful short-term fluctuations. Here’s a little tip to ease your worries: when it comes to investing, doing nothing is often best. A balanced portfolio held over the long-run often outperforms short-term decisions. Chances are, things will smooth themselves over with time. So invest, sit back, relax and watch your investments flourish. You can read more about strategies for volatile markets.
We are not certified financial advisers! The articles and information made available on Vestpod are provided for information and educational purposes only and do not constitute financial advice. You are advised to consult with an independent financial advisor for advice on your specific circumstances. Read our Disclaimer here.