4 MORE Advantages That Make Women Great Investors by Kim Kiyosaki

4 MORE Advantages That Make Women Great Investors

Learn what else sets us apart from the boys when it comes to investing

A few weeks ago, I shared a list of the four advantages women have that make us better investors. But guess what? That wasn’t a complete list. I don’t mean to brag (Ok, yes I do), but women bring so much to the table when it comes to investing, that I need to devote two blogs to it!

So let’s dive right in to the additional four reasons why women should absolutely be investing:

  1. Women Are Risk Averse

    Studies show that women are perceived to be more risk averse than men and that our risk taking tends to decrease under stress. Now, I’ve heard arguments that the real reason women will not be successful as investors is because they are less willing to take risks. Let’s examine that argument.

    I know for me, whenever I venture into an investment that I feel is a bit more risky or unfamiliar to me, I tend to study it just a little bit more carefully than usual. I do my homework with perhaps a bit more effort before laying out my money. If women truly are risk-averse, then this may lead them to do a little more research on the investments they are pursuing, which leads them to greater success with their investments—as statistics prove.

    Now, the one trap that we women need to watch out for is when our aversion to risk traps us in the analysis phase of a potential opportunity. If “analysis paralysis” happens, then we may end up doing nothing. So, use risk to your advantage, just don’t let it prevent you from moving forward. And here’s a little guide to help you decipher risky vs. safe investments.

  2. Women Have Much Less Ego

    I’m just going to come right out and say it: Women have much less ego when it comes to their investments. My girlfriends who invest tend to be very practical, matter-of-fact and conscious of the return on their investments. It’s no secret that men can tend to display ego or bravado when showing off their investments.

    This goes back to numbers one and two from the previous blog from a few weeks ago—women aren’t afraid to say, “I don’t know” and we are more willing to ask for help. Women are more likely to ask questions until they fully understand the information, and also tend to be more interested in the goal (making money) than in impressing the people around them.

  3. Women are Nurturers

    When it comes to investing, women tend to nurture their investments. What do I mean? Well, in the most obvious sense as it pertains to real estate, we take care of the properties differently. We fix them up, we meet our tenants and develop relationships with them, and we foster community ties.

    Part of the nurturing process involves establishing good relationships with other investors. This network may include business/stock/real estate brokers, finance lenders, investors, members of clubs and organizations, tenants, individuals privy to information on future progress within the city, tax professionals, mentors, etc. The stronger our relationships, the better information we receive, which can be invaluable when building an investment portfolio.

  4. Women Learn Well from Other Women

    Women are used to sharing information with other women—we will tell our girlfriends about the best new Pilates instructor in town, where we found a bargain on designer jeans, tips on hair products, and so much more. After all, if one of us finds something that works, we want to share it with our friends! This is one reason female-centric investment clubs are growing in popularity—it’s a great way to get introduced to, or to learn more about, the world of investing. I particularly like the ones that focus on education (a place to learn and study together) versus the resource pooling options, which can lead to disappointment.

    The downside of learning from women could be that women may sometimes take information from women who have no experience as gospel, listening to advice because, “she’s my friend.” So, just a friendly reminder to make sure that the women to whom you are talking about investing are like-minded and have similar investing goals — and that they have done or are doing exactly what it is you want to do. Otherwise you may be wasting a lot of your time.

So there you have it: All eight advantages women have over men when it comes to investing. Never let anyone tell you investing is a man’s role — financial freedom is within your reach ladies, and that’s a powerful and freeing position in which to live!

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