How Women Can Take Charge of Their Finances

How Women Can Take Charge of Their Finances

More women are taking charge of their finances.

In fact, this article from Bank of America provides some interesting statistics.

1. 94% of women believe they’ll be personally responsible for their finances at some point in their lives.
2. 48% of women are confident about their finances.
3. 28% feel empowered to act.
4. Most women who start investing state “I should have started this sooner in life.”

 

Why Women are Investing More

Here are some of the reasons why women are investing more.

1. Longer Life Expectancy: Statistically speaking women often live longer than men. Because of this, more and more women are taking control of the family investments.
2. Want a better life for their children: More women are taking control of their family’s investments so their children are better prepared for life after school.
3. Financial stability: Who doesn’t want to sleep better at night? Both men and women are looking for financial stability. One key factor that helps people sleep better at night is knowing their money is growing on autopilot. The best way to do that is the stock market!

 

The Problem Most Investors Face

Broker platforms such as Fidelity, Schwab, Robinhood, E*TRADE, eToro, Degiro, etc are becoming more popular and easier to join. In fact, most brokers are free to join and allow low fee or free trades. Because of the low-friction, a lot of men and women from around the globe are investing.

The problem with most brokers is they don’t provide a lot of confidence for investors. In other words, they don’t show investors how to get started, what stocks to buy, what stocks to sell, when to buy, or when to sell.

 

What is Tykr doing about it?

Tykr solves those problems.

The keyword we focus on is “confidence”. We provide investors with the confidence to buy and sell stocks on their own.

Because of this, more women are joining Tykr and quickly getting up-to-speed on their own which is exactly what we want.

The internet is saturated with a lot of finance applications but unfortunately, most of them contain dry content and complex acronyms which are primarily appealing to men who have worked in finance for 20 years.

 

With Tykr, we’re trying to change that.

Our membership base is 70% male and 30% female whereas most investing platforms are over 90% male and less than 10% female.

Here at Tykr, we’re doing our best to make investing easy for everyone.

Some of the general rules we follow while building Tykr include…

1. Tykr needs to be a global platform, not a US platform. We have members from over 50 countries.
2. Tykr needs to appeal to people of all ages. We have members ranging in age from 18 up to 80 years old.
3. Tykr needs to appeal to women just as much as it appeals to men.

 

Here is a Great Place to Start

For the women who are taking control of their investments, here is a helpful checklist to help you get started:

 

1. Create a Budget

A budget helps you see where your money goes each month.

• List Your Income: Write down all the money you earn.
• Track Your Expenses: Keep track of how much you spend on things like rent, food, and entertainment.
• Set Limits: Decide how much you want to spend in each category.

 

2. Build an Emergency Fund

An emergency fund is money set aside for unexpected expenses. This could be for car repairs or medical bills.

• Start Small: Aim to save a few hundred dollars at first.
• Set a Goal: Try to save enough to cover three to six months of living expenses.
• Save Regularly: Put a little money aside each month until you reach your goal.

 

3. Understand Your Debt

It’s important to understand how much you owe and how to pay it off. Here are some tips:

• List Your Debts: Write down all your debts, including the amount and interest rate.
• Make a Plan: Decide which debts to pay off first. Focus on high-interest debts first.
• Stay Organized: Keep track of your payments and due dates.

 

Learning About Investing

Once you understand your finances, it’s time to learn about investing. Investing is how you can grow your money over time. Here are some basics:

 

1. Know your Investing Options

These are the most popular investing strategies:

• Stocks: These are shares of a company. When you buy stocks, you own a small part of that company.
• Bonds: Bonds are loans you give to companies or the government. They pay you interest over time.
• Real Estate: This means buying property, like houses or land.

Of the three, stocks are the easiest to invest in and the most effective for building wealth.

 

2. Why Invest in Stocks?

Compound interest is known to be the “8th wonder of the world”:

• Compounding: Over time, your money can earn more money. In other words, you make your money work harder for you!
• Beating Inflation: A savings account doesn’t keep up with inflation which is why we recommend between three and six months of living expenses should be kept in savings. After that, we recommend you put your money to work in the stock market.

 

3. Set Financial Goals

Having clear goals can help you stay focused. Here’s how to set them:

• Short-Term Goals: These are things you want to achieve in the next year, like saving for a vacation.
• Medium-Term Goals: These are for the next few years, like saving for a car or home.
• Long-Term Goals: Think about retirement or funding your children’s education.

 

4. Start Investing Early

The earlier you start investing, the more time your money has to grow. Here are some tips to get started:

• Open a Broker: This is where you can buy and sell stocks. Some of the top brokers are listed here.
• Start Small: You don’t need a lot of money to start. Begin with a small amount and gradually increase your investments.

 

5. Learn About Risk

Every investment comes with risk. It’s important to understand your risk tolerance. Here’s what to consider:

• Look for On Sale stocks in Tykr with a 4M of 80 or higher: These are the safest stocks in the market.
• Investment Horizon: Don’t focus on trading (making money in the short-term). Focus on long-term investing such as 5, 10, 15, or 20 years out.

 

6. Stay Educated

This is where Tykr shines!

• Educational modules: The Tykr mobile app has educational modules inspired by Duolingo.
• Take Courses: Tykr has online courses if you want to go a step further.

 

7. Be Patient

Investing is not a get-rich-quick scheme. It takes time to see results. Here are some reminders:

• Stick to Your Plan: Follow your investment strategy, even when the market gets tough.
• Don’t Panic: The stock market goes up and down. Stay calm and focused on your long-term goals.

 

8. Celebrate Your Success

As you take charge of your finances, celebrate your achievements. Here are some ways to do this:

• Track Your Progress: Use the Tykr portfolio tracker to keep track of your stocks.
• Share Your Story: Talk to friends and family about your journey. You may inspire others!

 

Conclusion

Women can take charge of their finances and do just as well as men. In fact, Tykr has a lot of female investors who are confidently buying and selling stock on their own.

If this article resonates with you and you want to give Tykr a test drive, you can join Tykr for free!