Women in India often don’t really deal with ‘serious’ money matters like investments. I know innumerable women who are like this. They are comfortable paying their bills, shopping for groceries and taking care of their children. When these vital tasks can be so dexterously handled by women then why do they avoid making investments? The reason is simple. There are too many myths that dissuade women from taking a plunge into investing.
Let me first try and explain what is meant by investment. In very simple terms anything that increases in value is investment. You invest in something in order to make money on it. Money can be put into ‘securities’ like bonds, stocks and mutual funds. You can also buy real estate or a house. Basically anything that will fetch you more money is an investment.
Money: Most Indian women feel that they do not have sufficient money to invest. Believe me you have the money, but you just haven’t got round to investing it. First of all you don’t need a huge sum to invest. You can make humble beginnings. If you live on a tight budget or from paycheck to paycheck, remember investments will give you the extra money you need. For example mutual funds have a wide range of choices and the initial investment can often be as low as $25. Banks and credit unions provide incentives to invest through them; it is an easy process and your bank will help you with all the information.
Keep in mind that there are ways to put aside money for investment. For example, you could ask the bank to deduct a certain amount of your salary or write a check to your investment account every month. It will be just like paying your bills, only this money will eventually bring more money. When you get a tax refund don’t buy the designer shoes you always wanted, put the money in your investment account and eventually Prada shoes and Gucci handbags will follow.
It is important to reorganize your priorities. Don’t tell me that you can’t let go the blueberry scone and coffee every evening or the bottle of Pinot Noir you buy every weekend. Just rework your finances and keep money aside for investment. After all don’t you want to free yourself from the continuous financial insecurity you feel?
Knowledge: An episode of the ‘Simpsons’ deals with the subject of sexist views manifested by dolls. Lisa Simpson is shocked when her ‘Barbie like’ doll’s recorded voice says, “Don’t ask me, I am just a girl!” expressing her views on mathematics. You will be surprised to know how many extremely intelligent, efficient and capable women feel that way about investments. Of course traditional definitions of gender roles are responsible for this. Investment is a man’s decision. If it’s hard core finance, let the man handle it.
First of all ‘the man’ may be absent in your life and you are responsible for all your decisions. Don’t expect a prince to appear magically, invest your money and you will live happily ever after. Even if you are married, investing money for personal financial security is your responsibility. Just think of this, who will care for your financial future more than yourself? Also investing money is easy. It is as easy as applying lipstick, but you just have to get a hold of it.
The world’s greatest investor, Warren Buffett says, ‘Investment must be rational; if you can’t understand it, don’t do it.’ Don’t let the whirlpool of figures, letters and codes confuse you. After all, they follow a certain rational pattern and are not postmodern abstract art left open to personal interpretation. Remember, with just a little effort you should be able to grasp all the nuances of investment. They will make sense and you will enjoy investing your money. Men don’t understand investments better than women, it’s just that they have done it for a much longer time than women. In most cases women handle day to day finances, but men make investment decisions. See the paradox here, you are blamed for spending and he adds the money for you to spend! Please free yourself from these clichés; you are not the woman who spends without knowing where the money comes from.
Time: I know all that you have to do. You have to exercise, drive the children to school, go to work, make the morning smoothie, prepare his sandwich for lunch, cook dinner, make beds, and do the vacuuming. It is hard to find time to breathe, let alone plan your investments. Again this is about your priorities. Don’t tell me you don’t have the time to watch a George Clooney movie on cable. I am not asking you to give that up, no way. But if you have time for that you have time to invest too. For example when you are waiting for the cookies to bake or clothes to dry, sit and read an article on bonds or mutual funds. There are plenty of extremely easy and well written articles on the subject of investment. It will help you to figure out what exactly you want to invest in. If you have decided to put money aside for investing you are automatically saving time by cutting down your trips to the mall. If you take a bus or train to work read about investment plans during your journey. When you sit on the net to check your mail or browse for Angelina Jolie’s diet secrets spend some time to read about investment plans banks are offering. Remember you can get very good advice from the customer service representative of your bank. Spend time with your financial advisor instead of listening to the lady who gives you embroidery lessons on T.V.
Mistakes: Don’t we all worry about making mistakes in everything we do? The guy you once dated was a mistake, the money you spent on the fancy dinner was a mistake and the decision to do a course in unleashing your psychic powers was a mistake. But you were not afraid to go ahead and do it. Then why is it that investments scare you so much? Why are women always afraid that they will make a mess and lose the money when chances are that you will actually not lose but make money? Yes there are scams, frauds, confidence tricksters, the market is volatile and there is uncertainty.
First of all scams are easy to detect. Just remember two things, if an investment sounds too good to be true, chances are it is not true. Also as Warren Buffett says, “If you don’t comprehend an investment plan don’t go ahead with it.”
Another very important thing to keep in mind is to never borrow money for investing. It is important to put money aside and make small beginnings and never borrow a huge sum of money to invest. Again let me quote Warren Buffett to drive across my point, ‘When you combine ignorance and borrowed money, the consequences can get interesting.’
Don’t let anything deter you from making investments now. You have to take charge of your future. Incorporate investments in your day to day life, it will become a habit like exercising and eating right. Investments are good for you!
For further advice and information read:
Lowe Janet, 1997, Warren Buffett Speaks Wit and Wisdom from the World’s Greatest Investor. New York, John Wiley & Sons Inc.
Morris Virginia and Kenneth, 1998, A Woman’s Guide to Investing. New York, Lightbulb Press.
Wallace Beatson, 1993, Learning to Invest a Beginner’s Guide to Building Personal Wealth. Connecticut, The Globe Pequot Press.
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