You’re financially responsible, right? You opened up a bank account when you were young, you’re earning good money and you put a little aside from your pay check every month—and maybe you even have a side hustle to bring in some additional cash. You’re doing your best to ensure you have a secure financial future, and yet your financial goals for the future still seem like more of a pipe dream than simply a task on your to-do list. Sound familiar?
The problem lies in the fact that most of us let our hard earned money sit in the bank when we should actually be investing it. In fact, of all the assets controlled by women, 71% is in cash — aka not invested, and when you leave your savings in cash, you may miss out on market gains that could be earned over time, and even worse — inflation actually lessens your purchasing power. So, the biggest mistake we women make (and men don’t) is not investing in the first place.
The financial services industry is filled with jargon and complexity, making investing seem scary and maybe even. intimidating. Sallie Krawcheck is looking to change all that with the launch of Ellevest, a robo-advising platform designed specifically for women. “Wall Street over-complicates investing—ETF, mutual fund, managed account, managed futures, large cap value, small cap growth, all that stuff. But we’re a fiduciary—that means we must act in your best interests—so I’m going to make the decision, whether it’s a mutual fund or an ETF or a managed account. I’m not going to bother you with that. That’s not your job. Your job is to go out, earn your money, put a percent in, choose your goals, and then let me do my job,” says Krawcheck.
Any way you look at it, money is power, and right now the truth is men have more of it. So, if we want power, we have to start being more responsible with our money.
“The importance of it [is] taking care of yourself financially so that you can then change the world. That change can start with our daughters. Our daughters see us on a Saturday afternoon checking our brokerage statement. Our daughters see us getting ready to go into work and ask for the raise. Our daughters see women dealing with money as very normal, which [it] of course was not with my mother and so many of my generation. When women have more money at all levels of society, society benefits,” says Krawcheck. So, take the step, and invest. It only takes a minute to get started and then you can rest-assured you’ll retire well, and live like a boss.