Have you ever heard of the old adage “do something for 21 days and it becomes a habit”? Whether it takes 21 days or 100 days, establishing good habits is extremely important for your well being.
Successful women don’t do anything just once — they set rules and establish good habits. Rather, they set rituals for themselves that they follow daily, like practicing gratitude, eating well, meditating, and exercising daily. And now these women also adopting a far more important habit: investing.
To further our research into investing like a successful woman, we’re taking notes from the mouth of a very successful female athlete. In her own words, here’s how to live the life you want.
VENUS WILLIAMS, TENNIS SUPERSTAR, RANKED AS No. 1 IN SINGLES BY THE WOMEN’S TENNIS ASSOCIATION (WTA)
“Get in control of your money. When you’re in control of your money, you have options. You have options to live the life that you want; you have confidence because you realize you have options,” says tennis superstar, Venus Williams.
Williams points out that it’s all about having a choice, and that’s super important. “You’re in control of yourself, control of your family, control of your future, and that’s very important for women because we really, actually, determine where this world goes.”
Agreed. The problem is that women are not investing their money. “I think a lot of women don’t invest because they’re afraid, and they’re afraid of what they don’t know.” This is a fact: Most most women don’t want to seem like they don’t know what they’re doing when they talk to their accountant or with their financial advisor and [there are] things there that they don’t understand.
But, the biggest mistake for women is thinking they need to be an expert and they need to be wealthy before they start investing. Wrong. And the idea that you have to be wealthy before you start investing is so far from the truth, it’s laughable. You can start investing with as little as little or as much as you want and thanks to the power of compounding, your money will grow.
Whether it’s through educating women on equal pay or being an example for young female players courts, it’s a personal mission of Williams to help women gain financial control in their life. “We’re the backbones, we’re the moms, and we’re the sisters that take care of the daughters that take care of the parents when the sons go off in a different direction. So, we’re very important to the backbone of society.”
Ready to get in financial control? One suggestion we can offer you is the 50/30/20 rule: Dedicate 50 percent of your check to your personal needs, 30 percent to having fun and 20 percent to your future. “If you can’t hit that goal right away, that’s okay.”
That’s according to Sallie Krawcheck, co-founder, and CEO of Ellevest and former Wall Street executive at major institutions including Morgan Stanley, Merrill Lynch, and Citigroup. “Invest some percent of every paycheck, but get yourself in that habit of investing.”
“It can build your wealth….not by a little, but by enough to make a real difference in your life,” says Krawcheck. To further our research into the money habits of successful women, we looked at the numbers: Let’s say you’re earning $85,000 a year, growing in line with women’s salary curves, saving 20% of that annually (as personal finance experts recommend), and putting that money in the bank — after 40 years, you will have saved $1.5 million.
If you instead invest that same amount, in a diversified investment portfolio, depending on markets, in 40 years you can have another $1 million, or $1.7 million, or more. Ellevest calculated this using up markets and down markets, and you end up with these amounts the majority of the time.
“That’s life-changing,” Krawcheck points out.” So yes, absolutely ask for the frickin’ raise. But also invest the money you make already.
Make your power move: Take 10 minutes and make your power move today to get your complimentary financial plan from Ellevest today — you literally have nothing to lose. You can save your Ellevest plan, come back to it, adjust it, or share it, whether you invest with Ellevest or not.