Women's Creative Investing Tips Men Don't Think of

Let’s face it: men and women just don’t think the same way. Men like to focus on a single task, while women can easily multitask. When it comes to investing, the same is true: most men prefer to make large, bold investments with higher risk, while most women prefer to diversify their holdings and assume lower risk. It is their differences in thinking about money that can be the basis of a different investment style for women that can be just as successful as men’s investment styles, only a little more creative.

• Manage Your Investment Account
• Researching a Company for Investment

Smart Women Finish Rich: 9 Steps to Achieving Financial Security and Funding Your Dreams by David Bach Are you considering your values in your work and investing? What part of your daily work is driven by your goals in life? Is your latte habit preventing you from accumulating substantial wealth? Bach addresses tax strategies, wills, insurance, retirement plans, and investments in a highly accessible manner. Smart Women Finish Rich ably bridges the gap between simple saving strategies and preparing for widowhood and financial independence.

When men make an investment, they tend to go it alone, or at most involve a broker or financial advisor. Women, on the other hand, tend to be more social in nature, which makes investment clubs an ideal situation for women investors. This is particularly true for women with little to no investment experience, since they can join a group with more knowledgeable women who can teach them the ropes in a fun, supportive environment. When putting together an investment club, it is safest to join with women you already know and trust. It is also advisable to consult a financial consultant to determine how to legally invest as a group and be sure that all appropriate taxes are being paid. Just like any other club, like a book club or dinner club, an investment club can be a great way to make new friends while learning about investing.

When it comes to choosing investments, women tend to be more commercially savvy than men. While men tend to focus on big-ticket items like the latest flat screen TV or sports car, women are more focused on the day-to-day finances of running a household. An experienced shopper notices when the price of milk is rising, or the cost of filling the car with gasoline shoots up. Instead of just bemoaning the extra cost of living, take advantage of this knowledge to make investment choices. If you notice that oil prices are increasing, do a bit of research: if analysts predict that the cost will continue to rise for an extended period of time, the value of oil stock also rise. Pay attention to what your kids and their friends are buying. If the latest rage is a new brand of toy, research that toy company and consider making an investment.

Women are also more creative when it comes to finding money to invest. Women tend to be the people who clip coupons and shop bargains, so they are most adept at finding bits of money here and there. As my mother likes to say, every little bit adds up to a lot. When you go grocery shopping, look at the bottom of the receipt to determine how much money you saved with coupons and store specials. Set aside that amount each week for investing purposes. There are now several online investment companies that will allow for the investment of small amounts of money instead of requiring a large initial deposit. In addition to setting aside small amounts of “found” money, set up a direct debit from your paycheck every time it is deposited in your checking account. Even if you can only afford $25 each paycheck, this adds up to $650 a year if you are paid bi-weekly. Over 30 years, invested in a tax-free IRA account that earns 10% interest, your $25 a week adds up to $116,932, which is a great return on $25 per paycheck! Add on the small amounts of money that can be “found” through creative shopping and saving, and you’ll be well on your way to a healthy bank account—the woman’s way.