4 Investing Tips To Help You Get Started Building Wealth

Financial security is a priority for women. It is about having peace of mind, knowing you do not have to worry about unexpected expenses or life emergencies. It brings stability and independence, leaving you prepared for the future. However, according to Fidelity’s 2024 Women & Investing Study, women are nearly two times more likely than men to say their investing knowledge is “non-existent.”

Investing can feel confusing or intimidating because of the amount of information available and the risk involved. Avoidance may seem easier, but it is a powerful tool women can and should use to strengthen their finances and build wealth. Read on for useful information and practical tips to help you get started.

Understanding investing basics can help you overcome uncertainty and hesitation. In simple terms, when you invest, you are purchasing assets (stocks, bonds, real estate, etc.) to increase your wealth over time. Investing is not a get-rich-quick strategy; it is a long-term plan that requires patience. 

The reason investing is one of the best ways to grow your money is compound growth. The money you invest earns interest, which is called a return. If you keep the return with the original investment, you earn interest on the total value. This increases your money’s growth exponentially over time without you having to do anything. The lesson here? Don’t wait to get started.

Gargi Pal Chaudhuri, Head of iShares Investment Strategy and Markets Coverage at BlackRock, stresses the importance of women learning about investing in The Bid podcast. It is empowering and helps you feel confident making decisions, even if you are not an expert. She recommends starting with just a few minutes a day by listening to a podcast or reading financial articles.

There are plenty of resources designed for women to develop their financial literacy. Financial advisor Suze Orman’s Women and Money podcast breaks down financial concepts and offers advice. You can download her free Women and Money app to listen to episodes and explore other resources. Fidelity also offers a free Women Talk Money community where women can have real conversations about investing and access to actionable resources.

Because investing is a long-term activity, it is important to have a clear goal in mind. Finance expert Pattie Ehsaei advises being intentional by setting specific and measurable financial goals.

She recommends designating a percentage of your income for these goals and setting up automatic deductions from your paycheck. If you need help crafting a plan, Clever Girl Finance offers a free investment planning course.

Successful investing is all about being strategic. When you make thoughtful choices, your money can work for you with minimal effort but maximum impact. 

Suze Orman says one of the best things you can do is take advantage of employer-sponsored retirement plans, especially Roth 401Ks. They do all the work for you; all you need to do is authorize a specific amount of money to be taken out of your paycheck consistently. She also recommends diversifying by investing in mutual funds, index funds, and/or different stocks. What you do not want to do is put all your money in one stock.

Getting started as a beginner is easier when you have guidance. According to Bola Sokunbi, founder and CEO of Clever Girl Finance, robo-advisors use your goals to provide financial management services and customized investment recommendations without the cost of a human financial advisor. There are plenty of apps available, but Sokunbi recommends the following for beginners:

• E*Trade – an award-winning app that simplifies investing for all levels of investors
• M1 Finance – a free app that offers several investment options
• Ellevest – a free investing app built specifically for women
• Acorns – a subscription service app that includes educational materials.