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Women and Money (& How to Build Wealth as a Lady)

Let’s talk about an overlooked but important topic: women and money.

You are a strong, educated, and independent woman, I know. Still, as a woman, you struggle with unique challenges regarding wealth building, long-term financial planning and management. We all do irrespective of education and background.

Times have changed and we, as women, have made strides towards financial emancipation. It is crazy to think that a British woman couldn’t open a bank account in her own name until the Sex Discrimination Act (1975) and that women in the US needed their husband’s permission until the 1960s.

There is still much work to do. In this post we will look at:

  • The key differences between women and men when it comes to money.
  • Earning more as a woman.
  • Spending like a lady.
  • Investing like a girl (and Warren Buffett)
  • How to divorce your debt.

Let’s dive straight in!

Are women and men so different when it comes to money?

women and men money differently

Photo by Tim Mossholder on Unsplash

Yes, there are important differences between men and women and their relationship with money. Here are some of them:

  • Earning: On average, men tend to earn more than women. This is in part explained by the gender pay gap, which means that women are paid less than men for doing the same job. Women are also more likely to work in low-paying industries or take time off from work to care for family members, which can impact their earning potential.
  • Spending: Women and men have different spending habits. Women are likely to prioritize spending on necessities like healthcare, education, and home expenses, while men are likely to spend on cars and electronics.
  • Investing: Men are more likely than women to invest in the stock market and other forms of high-risk, high-reward investments. Women, on the other hand, are more risk-averse and prefer bonds and savings accounts. This can impact their long-term financial growth.
  • Debt: Women are more likely than men to carry debt, including credit card debt and student loan debt. Women are also more likely to prioritize paying off their debts over investing in the stock market or other high-risk investments.

These differences are not true for every woman or every man; they are statistical generalisations. Still, understanding these differences can help us make better informed decisions about our own finances.

How to earn more as a woman?

Women have come a long way in the workforce, and there are more opportunities than ever to build successful careers and earn decent income.

One key to making money as a woman is to be strategic about your career. You must inventory the skills and experience you have and find ways to leverage them to be valuable to employers. It also means learning new skills and taking on new challenges.

Networking is also important to making money as a woman. Building relationships with colleagues, mentors, and other professionals in your industry can open doors to new opportunities and help you advance in your career.

Negotiation is another important skill for women who want to make money. Unfortunately, women are often paid less than men for doing the same job, but negotiating your salary can help close that gap. This book will help you learn how to negotiate like a boss.

Starting a side hustle or small business can also be a great way to make money as a woman. Whether you’re selling products online, freelancing in your area of expertise, or offering services to your local community, there are many opportunities to turn your skills and passions into a profitable venture.

And remember that making more money, for us women, is not simply an exciting game to play. Money provides nourishment to our lives. Whether you wish to ensure a better future for your children, buy a dream home or visit the place of your dreams you need money.

Start with a big dream and go girl!

How to spend like a lady?

learn how to spend

Photo by Nick Noel on Unsplash

As women, we have unique spending habits and priorities that reflect our values and lifestyle choices. Research shows that women:

  • are more likely to prioritize their health and well-being, and may spend more on things like preventative care, vitamins and supplements, and gym memberships. They may also invest in their education and professional development to enhance their skills and knowledge.
  • tend to spend more on home expenses, such as furnishings, decor, and renovations.
  • spend on experiences, such as travel, entertainment, and dining out. Women often value experiences over material possessions and may be willing to spend more on a memorable trip or a special night out with friends or family.

Women are more likely to do research before making a purchase, comparing prices, and reading reviews to ensure that they’re getting the best value for their money. They are more budget-conscious than men and may prioritize spending on things that are important to them, rather than indulging in impulse purchases.

How to invest like a girl? (Warren Buffett does)

We, women, have historically been underrepresented in the stock market and other forms of investment. However, there is a growing movement to encourage women to invest and take control of our financial futures.

One reason you may be hesitant to invest is a lack of knowledge or confidence in your financial skills. Studies have also shown that women are more risk-averse and may shy away from high-risk, high-reward investments like stocks.

Staying away from investing threatens your long-term financial security and freedom. You must feel the fear, accept your limitations, and start investing anyway.

There are several ways to get started with investing. You can work with a financial advisor who can help you create a personalized investment plan and provide guidance and support as you navigate the stock market. Another option is to invest in low-cost index funds, which can provide broad exposure to the stock market and minimize the risk of individual stock picks.

Or you can learn how to invest like a girl. This means you must:

  • Start with a plan: Before you start investing, take the time to create a financial plan that outlines your goals, timelines, and risk tolerance. This will help you make informed investment decisions that align with your overall financial objectives.
  • Diversify your portfolio: Diversification is a key principle of investing, and it involves spreading your money across different types of investments to minimize risk. Invest in a mix of stocks, bonds, and other assets to ensure that your portfolio is well-balanced and resilient.
  • Invest for the long-term: Investing is a long-term game, and it’s important to be patient and stay focused on your goals. Don’t let short-term market fluctuations or news headlines derail your investment strategy. Instead, stay disciplined and stick to your plan.
  • Consider socially responsible investing: Women are often more socially conscious and may be more interested in investing in companies that align with their values. Consider socially responsible investing, which involves investing in companies that prioritize environmental sustainability or social justice.
  • Don’t over-trade: Men trade 45% more often than women do and can be overconfident. Men reduce their returns by trading often and without doing enough research.
  • Don’t be afraid to seek help: Investing can be complex, and it’s okay to seek help from a financial advisor or investment professional. They can provide guidance and support as you navigate the world of investing and help you make informed decisions that align with your financial goals.

Good luck (and hope to see you on the wealthy side).

Debt is not your lifetime partner, ladies

Women are more likely than men to carry debt, and it can have a significant impact on our financial lives.

There are many reasons for that. For instance, we often earn less than men, which can make it harder to pay off debt (or live within our means).

But debt doesn’t have to be a life sentence. There are steps you can take to pay off your debts.

You may also wish to check out my book, Never Bet on Red, for practical ideas on how to become debt free (and live without debt).

And finally…women and money are like honey and apples

Do you believe that women and money are like oil and water?

It is time to change your thinking – think honey and apples.

You can build wealth and ensure that you have financial security – for yourself and your children.

Don’t try to invest, make money, manage money, and pay off debt all at once. Don’t jump. Take one small step on the path to wealth.

Pay off £100 worth of debt. Then do it again.

Negotiate £1,000 pay rise. Then do it again.

Make £50 from a side hustle. Then make £1,000.

Keep going. Believe in yourself as much as I believe in you!

Photo by Brooke Lark on Unsplash

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