Why Women Should Invest More

One of the strongest ways women can change their narrative for best and singlehandedly close the gender income gap is through the creation of wealth. Yet, with investing being one of the biggest wealth generators, women statistically invest less.

Much has been said about closing the gender gap. In fact, the International Monetary Fund (IMF) in an economic review of Nigeria’s economy explains that closing the gender gap would mean higher growth and productivity, and greater economic stability of the nation.

It also explains how this is holding the nation back from a higher level of economic growth and success. Over time, women have proven to be pillars of economic building and many have gone ahead to break records and win in their different spheres of life.

However, one of the strongest ways women can change their narrative for best and singlehandedly close the gender income gap is through the creation of wealth. Yet, with investing being one of the biggest wealth generators, women statistically invest less.

To change the narrative for good, here are some of the reasons women need to take the bull by the horn and invest for sustainable wealth creation.

Saving Doesn’t Do So Much

Research shows that 71% of the money women have is cash and many of us will have seen that play out in our different circles. However, whether the saving is done in a financial institution or in more traditional settings like ESUSU, the long term result is usually a loss of value.

You lose more cash when you only save. Saving could at best grow your investment annually by 4%. Yet, inflation thrives at double digits of say 13%. In essence, what your money will be able to buy tomorrow will be less than what it can buy today.

Investing, on the other hand, grows your income and puts you ahead of the changing economy. With investing, you have the opportunity to unleash the power of compounding and enjoy the gains of exponential investment growth.

Close The Wealth Gap

Statistically, women are less likely to invest, and even those who do, typically wait until they are much older to start the process. Financial means is a key determinant of control.

As such, having more wealth women in a system that has placed them as all-round dependents for possibly hundreds of years, gives women the opportunity to be a part of many discussions. Investing gives you a sense of financial equality and it puts you in direct control of wealth creation.

Retirement Saving

Retirement saving isn’t gender-based. Just as men need to save for their future, women need to plan towards the period when they are retired and cannot work as much as they can again. This long term saving also helps in setting up an emergency fund to meet needs that might arise.

Because you cannot realistically save all the funds you require to have the retirement of your dreams, investing is a way to make your money work for you even when you no longer need it to.

Time Management

With investing, women can control how they work, when they work, and how much work they have to do. Investing frees up your time and gives you another way to make money without having to spend long hours at work.

This, of course, doesn’t take away the need to work for a living. However, with proper wealth creation and investment, you can be more adventurous with what you do with your time.

The best thing to do with your money is to invest and the best time to start is now.

Written by Lawretta Egba.