When it comes to money, we all seem to be in different places. That’s okay; after all, personal finance is very personal. Confidence, though, plays a factor in how well we do over time with money. And, if you’re a woman, there’s a good chance that your lack of confidence when it comes to money — especially investing — is holding you back.
Women are Less Confident about Money
According to a recent study put out by Fidelity, women are less confident about money, and talking about money, than men. Only 47 percent of women say that they are confident about discussing money and investing with a financial professional on their own.
Women are also hesitant when it comes to investing. Research indicates that women are more likely to carefully consider investment decisions — and hesitate because they are unsure. However, even though many women have savings habits, 60 percent of them worry about not having enough money to last through retirement.
Part of this confidence gap in terms of having enough money has a lot to do with the fact that, in our society, women are still more likely to be caregivers and stay home. Their earnings are often lower, and they don’t have a lot to fall back on. As a result, they have a harder time saving up for retirement, and miss on earning power. Add that to a reluctance to invest, and that can make it difficult for women to build for a solid financial future.
Get More Involved
Whether you are a woman or a man, it’s a good idea to be involved in your finances. Fidelity’s research indicates that many women are ready to get more involved with their finances. According to the survey, 83 percent want to be more financially involved in the next year, and 92 percent want to learn more about financial planning. This could also indicate an interest in understanding investing a little more.
Knowledge and involvement can help build confidence. No matter where you are at when it comes to money management, and no matter how little confidence you feel right now, the reality is that you can be more involved, and you do have the opportunity to boost your abilities. Just learning about how money works and taking a more active role can help you improve your chances of success down the road.
Once you know more about investing, especially how beneficial (and easy) long term investing strategies like indexing can be, it’s easier to feel confident about your abilities. You don’t need to turn into the world’s greatest stock picker, or be in charge of every aspect of your family’s finances. However, if you know what’s going on, and you have a solid grasp of the situation, you will be more confident about your retirement future. You will also be more confident if you have to step in to manage money, perhaps due to your life partner being incapacitated in some way.
When it comes to money management and investing, knowledge and confidence can go a long way. Do what you can to cultivate your own abilities and you’ll reap the benefits.
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