5 Reasons Why All Women Should Invest

We are living in times where old social barriers are steadily being broken down, so why not crush this stereotype as well, taking the future of our finances into our own hands. There are many reasons to invest. These might convince you why you should do so today.

1. Women earn less 

Gender pay gap is an issue still largely present, even in the developed world. The situation, of course, varies from country to country, but according to latest Eurostat data, women earn on average 12.9% less when compared to their male counterparts. And if you think that is a lot, in countries like Slovakia or Estonia, the pay gap soars as high as 20%. Or in other words, an average European woman receives around 88 cents per every euro earned by a man.

Even though the situation has certainly improved over the past years, with countries like Romania or Italy having less than 5% difference, many other states still experience considerable stagnation, with the situation not having improved at all.  

Despite all the efforts that we are making as women, it looks as though this pay gap is not closing anytime soon. That’s why we need to think outside the box, and appreciate our money.

Source: platy.sk

2. Women live longer and need more money in retirement

According to the World Health Organization, women live on average 6 to 8 years longer than men. With less income due to the pay gap, coupled with a lower retirement age in some CEE countries, women receive lower pensions than men. One study of EU data showed that the median pension received by male retirees was 11,4% higher compared to the income of their female counterparts.

I certainly don’t want to scare you ladies, or myself, but by the time we retire, we may also risk facing poverty unless we take action today. Sadly, the risk of poverty is greater for female pensioners than for male pensioners. You can find out more on this topic within other Finax content.

Source: Eurostat

3. Investing will multiply your funds and help you reach your goals faster

Whether you're a mother or a woman focused on her career, one thing is certain: having extra money is always an advantage. For instance, it might help you send your kids to their dream school and ensure they have the best future possible.

Setting money aside for your children is always a good idea, as it can later cover anything from medical expenses and school fees to a dream wedding or kickstarting their life.

4. You will experience financial freedom

Having a partner to rely on and manage finances together is wonderful, but not everyone is that fortunate, and life can sometimes take unexpected turns. In such cases, it’s essential for women to be financially prepared. This means having a sufficient reserve to handle unforeseen situations, whether it’s relocating, buying a car, or covering home repairs.

Even if you do have a partner, building a financial safety net is still important. It allows both of you to take steps toward early retirement and enjoy more quality time together.

5. You will obtain financial knowledge and boost your self confidence

Gaining basic knowledge and experience in investing will help you build confidence and gradually overcome any fear you may have about it.

When a woman understands her finances and takes control of her money, she becomes more empowered to make informed decisions about her future. This knowledge enables her to better plan, invest, and reach her financial goals, leading to a stronger sense of independence and security. As a result, her confidence grows not only in managing money but also in other areas of her life.

Investing teaches us how to plan, save where necessary, and avoid unnecessary expenses. While financial literacy is something that ideally should be taught from a young age, it’s never too late to start learning how to manage your money effectively.

The world of finance, investing, and business has traditionally been dominated by men, yet numerous studies show that women often outperform men in investing. If you want to manage your money effectively and see its value grow, the first step is yours to take. While starting can feel challenging, we at Finax are here to help you make a strong start in your investment journey.