TomorrowMakers

Did you too think women are bad with money? Read on!

Investment strategies men can learn from women

When it comes to financial matters, ours has been a male-dominated society so far! With more and more women joining the workforce today, the world is shifting towards gender equality even in the realms of investments. 

Earlier it used to be the norm that women would rely on their male counterparts to make investment-related decisions. The reason behind this trend was that women have always been stereotyped as spendthrifts. 

“Women love shopping”. 

“Women are not good with saving money”. 

These stereotypes earned women a reputation that restricted their independent growth in financial subjects; however, as it turns out women have always been better at financial management than men. 

Better at micro-managing funds

Across the globe, women have been the homemakers since ages. One aspect of running the household also involves them to micro-manage expenses. Be it bargaining at the ration shop or fitting in more vegetables under the same price quoted by the shopkeeper, women have always been the masters at the art of finance management. It is a common observation and a butt of many jokes that women are better bargainers. However, the art of striking a good economic deal needs more recognition. 

Investing since long

Women not only get the job done cheaper but they also know where to put the money for better growth. Our mothers and their mothers before them were trusted with the money earned by “the men of the house”. They were trusted because even back then, men knew at the back of their head that a woman knows what to do with that money. Earlier women would invest in gold or other physical assets, however, now with more awareness on financial assets, we may start to see a shift of choice sooner. 

Great at budgeting

Women are good at allotting budgets for various household chores. As a child, you must have asked for pocket money from your mother and you would have seen your father ask for cash from time to time. Women have a natural tendency of organising the available resources in a way that the wastage is minimal and the benefits are maximised. 

Natural nurturers

Nurturing comes naturally to women. So when they have some savings lying around, they would choose a way wherein they can grow the money over time. Men tend to invest more aggressively. 

Goal-oriented investments

Women tend to put emotional value to their money. So when they invest, the money is being invested for an already-identified goal. For men, investments could be solely for the purpose of getting “richer” with no leash on the number. Arbitrary goals would never lead to as much utility as specific goals do. 

Cautious players

Another thing that men could learn would be gauging the risk. Women are in general more cautious than men and tend to over-think. However, over-thinking can help in matters of financial investments. Women are more likely to go for less risky options with stable returns. The reason for this being that men have always been touted “the men of the house”, whereas our women remain “homemakers”. So, most men, who are just starting with investment issues, assuming their heroic roles tend to be more independent and less careful. On the other hand, a female beginner would have faced more challenges to reach a financially independent pedestal and is more likely to also think about the future of people around her. Thus, she naturally inclines toward more stable investments. As we have also noticed in the recent market conditions, stability eventually pays off in the long run too. 

Conclusion:

These are some of the few lessons that men can learn from women when it comes to investments and money management. Women are now becoming more active and independent in handling their personal finances. While the industry largely remains dominated by men, the increasing number of female financial investors may challenge the hitherto soon. 

How I did it

Rahila Khan
Homemaker

I am a single mother of one. I lost my husband just 5 years into my marriage. Life has been a struggle for me, but I have managed it and today I have no complaints. 

I was a young widow with a 3 year old son when my husband passed away due to a heart attack. My parents were my rock… Read more

Piya Sharma
Chartered Accountant

I am a CA by profession. As my training has taught me, investing is a big part of my financial strategy. I am slightly risk-averse and invest heavily in mutual funds, FDs and ULIPs. I stay away from the stock market. 

As the household expenses are taken care of by my husband, I use most… Read more

Rajesh Singh
Corporate Executive

Growing up I did not have much other than the bare necessities. Though my mom tried her best, she could not fulfil our wishes. I always knew I had to study and improve my life. Today, I own a bike, a car and my own humble house. This has only been possible because of my prudent wife.

We… Read more

Suraj Chandwani
Gas Station Owner

I like to work hard and live a good life. I want to give the best to my wife and son, as well as my parents who live with us. I own a gas station in the suburbs of Mumbai. I had taken a loan to set up my business. So a major chunk of my earnings goes in repaying the loan. I also have a car loan… Read more

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