5 Essential Tips for Women Who Want to Start Investing with Confidence
By Zoe Brett, Financial Planner at EQ Investors.
Investing is one of the most powerful ways to build wealth, yet many women hesitate to take the plunge. Whether it’s a lack of confidence, a fear of making costly mistakes, or simply feeling unsure where to start—women often invest less than men. However, understanding some key principles can help you confidently navigate your investment journey.
Here are 5 essential tips for women who want to start investing:
1. Know Where You’re Starting From
The foundation of any successful investment journey is a clear picture of where you stand financially. Understanding your income, expenses, and debt will allow you to make informed decisions.
Top Tip: Start by creating a detailed budget, including both fixed monthly costs and variable expenses like holidays, gifts, and annual fees. This gives you an accurate view of your cash flow, helping you identify how much you can afford to invest without impacting your day-to-day financial needs.
2. Build an Emergency Fund First
Before jumping into investments, ensure you have an emergency fund in place. This fund is your safety net, designed to cover unexpected expenses like a bigger-than-expected tax bill, car repairs or sudden unemployment.
Top Tip: Aim to save 3-6 months of living expenses in an easily accessible savings account. This allows you to weather any financial storms without derailing your investment plans.
3. Understand Your Risk Tolerance
Risk is a natural part of investing, but not all investments are created equal. Before you make any investments, it’s crucial to evaluate how much risk you're willing to take on.
Top Tip: Take a risk assessment quiz online or consult a financial advisor to determine your risk profile. Investments that suit your risk tolerance will be better aligned with your comfort level, helping you stay invested even during market volatility.
4. Invest in What You Believe In
More women are choosing to invest in alignment with their values, prioritising sustainability, ethical investing, and social impact.
Top Tip: Research investment options that reflect your personal values, whether it's green energy, women-led companies, or community-driven businesses. Many ethical and sustainable investment opportunities now offer competitive returns alongside positive impact.
5. Stay the Course and Don’t Panic
The stock market will fluctuate, but don’t let short-term volatility discourage you. Successful investing requires a long-term mindset.
Top Tip: When the market dips, resist the urge to sell in a panic. History shows that markets tend to recover over time. If you’re worried about timing the market, consider "pound cost averaging"—investing fixed amounts regularly to reduce the impact of market fluctuations.
Why You Should Start Investing Now
Investing is not just about growing wealth—it's about gaining control over your financial future. By following these simple but effective tips, you can build a robust investment strategy that works for you, empowering you to create wealth on your terms.
