This article is written by Kristen Lunman co-founder and general manager of Hatch - a digital investment platform providing Kiwis access to the US share markets.
In the first of a four part series Kristen shares her extensive knowledge about investing.
When it comes to investing, the biggest mistake women make has nothing to do with how they invest. In fact, studies have shown women are often better investors than men. Our number one mistake is we’re not investing enough.
In 2021, women are independent, earn good money and have access to all kinds of investment opportunities our mothers never had. Yet, many of us stick to playing it safe in savings accounts with rock-bottom interest rates.
When it comes to money, we often don’t feel as confident as men, and we can worry ourselves into inaction, triggering an anxiety loop of where do I start? How much should I invest? What should I invest in? It can become so overwhelming that we might think, "investing just isn’t for me."
Most women feel like they’re good savers, but there’s a big difference between saving and investing. Savings are intended to be used as a safety net when life throws us curveballs or short-term goals like a holiday this winter. Investing gives us the ability to take control of our financial future and achieve long term goals like quitting a job for a career change, or a retirement bach up North.
What about share market risks? Without some risk, there's no opportunity for investment return. You can’t reap the rewards of investing without hitting some bumps along the way. Just keep in mind even with the occasional share market drop, historically, the US and NZ share markets have provided good returns with a long-term average of around 10% growth per year.
These days, you don’t have to start with thousands. Instead, think about starting with something like $100 and look at it as an investment in your financial education. Choose a company you know well, or research a popular exchange traded fund (ETF) that spreads your money across hundreds of companies in one go. You can make automatic monthly deposits to build up your investment portfolio over time.
You’re not too busy, it’s not too complicated, and it just might be something you’re good at. Investing has changed thanks to modern investing platforms that use technology to make it more affordable and accessible.
If you’re currently doing things like booking flights online or use online banking, you’ll probably be surprised with how easy buying shares can be. All you need to do is open an online account, transfer money into it, and place an order. And voila: you’re a shareholder in the causes you believe in and the brands you use every day.
It’s never too late to start. You work hard for your money, so now could be the perfect time to make sure your money is working hard for you.
Hatch is 100 percent Kiwi-owned and is part of Kiwi Group Holdings Limited, owned by NZ Post, the NZ Super Fund and ACC.
This is intended to provide general information only and should not be viewed as investment advice. Before making financial decisions, you may wish to seek independent financial advice.
This article was created by Hatch