You’ve heard it from us before, and you’ll hear it again: You should ask for a raise — because chances are if you do ask, you’ll get it (fact: 75% of women who negotiated for a raise got one in 2017). But, what if we told you that you could give yourself a raise even if you didn’t get the courage to ask for the raise — or you did and you struck out?
According to Sallie Krawcheck, co-founder, and CEO of Ellevest, an innovative digital investment platform for women, you could be making more money tomorrow (like a lot, LOT more) if you just start investing today.
The reason is pretty simple . . . by investing your money steadily today, you’ll be able to take full advantage of “the power of compounding”— the power of your investments to earn returns on the money you invest . . . and over time, you also earn returns on the returns themselves. And that will pay off.
And the earlier you start, the better. Why? Because a dollar invested in your 20’s is more valuable than a dollar invested in your 30’s or 40’s.
So that raise we were talking about earlier. . . yes, you should absolutely ask for it. But also invest the money you make already because it will make you more than even that raise.
Ahead, we go through why and how you should start investing today.
The Cost of Waiting is High
So how much are we talking about here?
To put it into more context, let’s say you’re earning $85,000 a year. Sadly, you didn’t get the courage to ask for the raise — or you did and you struck out. Hey, it happens. But you did decide to take your annual 20% savings and invest it in a diversified investment portfolio instead of leaving it in the bank (except for your emergency fund, of course).
How much more money will you have in 40 years? Ellevest estimates say anywhere from an additional $565,000 to $2.1 million more* (seriously, friends), depending on markets. So, on average, let’s call it $1.4 million more. That’s more than the incremental $1 million you get over time from getting that raise.
Starting is Easier Than You Think
At Ellevest, they’ve built a robust investing plan for you, based on what you tell us you want to achieve. And it’s flexible — so you don’t have to worry about doing it “perfectly.” You can sign up and drop a dollar in your account today and always change your goal timelines and monthly deposits as life changes. The important thing is to just start investing already.
Why We Should All Invest
We should invest because we are literally losing money if we are not. Fact is: We have less money than men, not because we don’t work as hard as men do (we know the answer to this one), and not because we’re not as good at math as men are (trivia fact; we’re as good or better at math) — and not because we’re not as good at our jobs or as good at investing (ahem–we’re actually better). It’s not for any of these reasons.
So, why are we not investing? It’s because the financial services industry has been built by men, for men. . . until now.
Enter Ellevest. The new way to invest: Built for women, by women — with hundreds of hours of research, design, and conversations with women about what they actually want. Brought to you by a company populated by people more representative of what our country actually looks like (since we’re not 90% men).
Built with women in mind, Ellevest’s unique algorithm takes into account the realities of being a woman. Realities like: we live longer than men, our salaries peak sooner, and we take career breaks, i.e., we have kids. Pretty important stuff when it comes to retirement.
Whatever your reason, it’s time to start investing towards your goals. You don’t need to know everything. . . you just need the basics we’re giving you here. And believe us, starting is the hardest part, but we’re challenging you to take that first step today by taking away all your excuses for not.
Where Do I Start Investing?
There’s investing, then there’s Ellevesting. Ellevest has built into their proprietary algorithm women’s unique salary curves and longer lifespans, to give you an investment plan designed to help you achieve your goals in the majority of market scenarios.
The platform is well-designed, easy-to-use, and speaks to our unique financial needs — whether that be planning for retirement, that Aussie vacation, or starting a family. The best part? The advisors at Ellevest are incredibly knowledgeable and will help you every step of the way.
What are you waiting for?
If you had a dollars falling out of your purse every day, you’d get that fixed, right? This is the same thing — let’s fix it today. Repeat after us: “Yes, I will absolutely ask for the frickin’ raise. But I will also invest the money I make already.”
Now that you’ve read about how to boost your income with investing, it’s time for you to develop a game plan for your money.