Women's Natural Talents: Investing and Committing

As women, we tend to invest ourselves fully and completely in nearly all facets of our lives. We are often as equally invested in our commitment to money as we are in our relationships. Yet we tend to talk and read more about the latter, too often ignoring our financial educations. Well I say, "No more!" We shall conquer our financial educations here and now, beginning with an understanding of why we women are perfect investor candidates.

Men and Investments

We have all heard that men have a fear of commitment. While this may be true in some cases, it is not always true. Men can (and do!) commit fully to their relationships and long-term financial investments.

However, many men seem to be able to throw caution to the wind more easily than women. Many of these men are not afraid of risks; they can invest in more risky stocks in which they can potentially make more money more quickly. The feeling of new excitement can overcome any risk-benefit analysis.

Women and Investments

Women, on the other hand, generally enjoy long-term investments, or commitments, per se. We invest in our family and friends, invest in our jobs and invest financially, more often for the long haul. These non-Y-chromosome personality traits can give women an edge in financial investing.

In fact, our natural abilities to invest and commit are the equivalent of popping financial vitamins: we strengthen ourselves daily for the long-term payout in the end. We can analyze our investments and stick out the wait for that strong finish.

The Good News

Women are starting to realize our strengths in the investment realm. We are now investing more frequently, often studying our choices before purchase. In fact, according to UC National Association of Investors Corporation, over the course of twelve years, women’s investment clubs outpaced men’s clubs nine of those years. That’s a full 75% of the time!

In order for anyone to be successful at investing, you must be able to seek advice and be willing to commit. We, as women and natural caregivers, are in the perfect position to invest. Commitment is what we’re good at and can help us invest wisely.

What do you think? What other natural tendencies make women great investors?

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Anonymous's picture

Niki wrote:

Tue, 06/28/2011 - 12:21 Comment #: 1

I love reading articles about how women make better financial advisers, nothing against men, it's just nice to see.

Anonymous's picture

retirebyforty wrote:

Tue, 06/28/2011 - 19:37 Comment #: 2

I think you're right. I have a lot higher risk tolerance than my wife over the past 10 years. Now that we are a bit older, I think I will reduce my risk more and more and hopefully we'll meet somewhere in the middle.

Jessica Schmeidler's picture

Jessica Schmeidler wrote:

Sun, 07/03/2011 - 07:28 Comment #: 3

I'm glad you liked the post, Niki! There's nothing more fun than helping other women gain confidence with their finances. Every woman should at least learn about investing, and then make the decision from there.

Thank you for the affirmation, retirebyforty. It definitely sounds like you have things under control (retiring by forty and all...), and I think you're quite right about meeting in the middle soon. It's so important (as you already know, I'm sure) to readjust your investment portfolio as your risk levels change. You two are great examples to learn from. :)

Anonymous's picture

Women and Finances: Getting Started Budgeting and Investing wrote:

Wed, 01/18/2012 - 21:15 Comment #: 4

[...] A woman's natural talent for investing: why women can do it just as well as the guys! [...]

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