THE WORDS, 'women' and 'investing' have traditionally not been associated; just like a polka dot skirt and a plaid blouse - not a likely combination. However, with record numbers of females in the workforce, along with changing attitudes about gender, old barriers and 'glass ceilings' are being shattered. Though investing may be gender blind, a proper strategy should not be. Women tend to live longer and will likely earn less than men, so their investment strategies must take these factors into account. That said, putting their money to work clearly becomes more critical. Here are a few tips to get started:
Before you begin building your financial portfolio, sit down, take out a pen and make a list of everything you own (cars, cash, bank accounts, stocks, bonds, etc.) and everything you owe (credit card balances, student loans, etc.), and be brutally honest.
Rank all of your debts by the interest rate you are paying, beginning with the highest. Decide how much you can afford to dedicate to debt reduction each month from your regular income and attack accordingly. The sooner you eliminate high-rate debt, the sooner you will be able to start building that nest egg.
Investing and perfection do not go together - don't worry about not knowing enough. The key is to get involved and improve over time. An investment adviser can help take some of the fear out of investing - just be sure to find one that's right for you. Simply take the time and muster the strength to sit down with an adviser, so a course can be charted. After all, this service is free!
Diversification is important in putting together a complete portfolio. Don't be afraid to take some risks; remember you're investing for the long term. The stock market is currently in a bearish mode, so including some undervalued stocks is clearly advised at this time. Sometimes it is best to run ahead of the 'herd'.
Entertain frugality. The cost of grooming is by far one of a woman's most costly habits; a necessary 'evil' if you will. However, this 'evil' does not have to send you (or keep you) in the fiery pits of financial hell. Instead of visiting the salon every week, try alternate visits, with you picking up the slack in between. This practice over a few years will save you thousands of dollars that would have been invested to earn attractive returns.
Exercise discipline in sticking to the charted course. The key to success is making intelligent decisions and sticking to the basics. There is nothing mysterious about building your portfolio; it is realised through a culmination of small, well-organised choices.
In the parable of 'The Richest Man In Babylon', one of the many lessons that George S. Clason teaches is to keep your mind on the bigger goal to "protect your true wants from your casual desires." Your financial well-being depends on your approach to money and your keenness to take your financial future into your own hands.
To further discuss investing and the many options we have available, contact DB&G at info@mydbg.com or toll-free at 1-888-CALL DBG.
Taken from The Sunday Gleaner, February 12, 2006
