Investing 101 - A Beginners Guide for Professional Women

“It's a philosophy of life. A practice. If you do this, something will change, what will change is that you will change, your life will change, and if you can change you, you can perhaps change the world." - Vivienne Westwood

Insights from a Certified Money Coach:

Let’s start with a common scene: You’re sitting at a dinner party, and the conversation turns to investing. Words like: “portfolio diversification,” “stocks,” and “mutual funds” are tossed around.

You find yourself nodding politely, even though, deep down, you feel out of the loop, lost and little out of your depth. That familar feeling of anxiety creeps in, you've wanted to demystify this stuff for years but for one reason or another you've never gotten around to it. So now you're still seemingly behind the 8-ball and wondering if and when you'll ever become "a woman who invests"...

Sound familiar?

As a professional woman over 40, you’ve already achieved a lot in your life. Professionally, you've nailed it - you know your stuff, you're regarded as an expert and within your lane you're unstoppable. Yeah? No sweat. But when it comes to investing, you might feel hesitant or uncertain about how to get started... It's not your specialty, you're not trained, you didn't get any role modelling from the women in your life and somehow it's been elusive for all these years.

Yep, the world of investing can seem overwhelming.

Like a tough nut to crack.

It’s not uncommon to feel like you’ve missed the boat.

SO many women share with me that they feel a creeping sense of unease that maybe it's too late for them.

Is that your story, too?

Do you think it's too late for you to make a start on your investment journey?

Then consider this…

Vera Wang started her fashion business at age 40.

J.K. Rowling was 42 when she completed the Harry Potter book series.

Louise Hay published "You Can Heal Your Life" at 58.

Kittie Weston-Knauer was aged 39 the first time she rode a BMX bike and at age 74 is the oldest competing BMX rider in the USA today!

The list goes on.

Point being, it's never too late to step up to achieve a dream, make a change or begin something new.

In fact, I'd argue that right now is your time.

You might not want to be a fashion designer, author or BMX rider…

But for YOU, in your life, investing may have felt almost as impossible as publishing an international best seller, becoming a haute couture fashion designer or competing as a high impact sportswoman in your 70's.

You know, here’s the truth: It’s never too late to start investing.

If it's been on your heart for a while now, that gnawing feeling that you'd like to make a start as an investor, even on a small scale, then go ahead and do it.

In fact, investing can be a game-changer when it comes to securing your financial future and achieving the elusive goal of financial freedom.

Whether you’re planning for retirement, saving for a big goal, or just want to make your money work harder, it’s time to dive in.

In this guide, I’ll walk you through the basics of investing - without the jargon - and help you take that first step towards becoming the empowered, confident investor you know you can become. 

Why Investing Matters for Women

Money matters for all people - I am sure we can agree on that.

However, women face unique financial challenges, ones that require tailored solutions.

These including a longer life expectancy, generally lower salaries and potential career breaks for caregiving, like having children or looking after older relatives.

What this can mean is that we are less equipped with the financial resources to achieve our money goals.

It is for this reason that investing is super important for women to ensure long-term wealth management and retirement planning.

Here’s the reality: If you rely solely on savings, inflation will erode your purchasing power over time.

By investing, you can grow your wealth and build a cushion for the future.

The earlier you start, the more time your money has to grow through compound interest. 

Now, let’s demystify the basics and get you on the path to smart, confident investing.

Step 1: Know Your “Why” – Defining Your Investment Goals

Before diving into the world of stocks and bonds, take a step back and ask yourself:

"Why do I want to invest?"

Understanding your “why” is crucial because your investment strategy should align with your goals, whether that’s building a nest egg for retirement, funding your children’s education, or simply achieving financial freedom.

For example:

- Are you investing for long-term growth?

If so, you might lean towards stocks.

- Do you want to generate passive income?

Real estate or dividend-paying investments could be a good option.

- Are you planning to retire in the next 10 years?

In this case, balancing growth with stability becomes key.

Once you know your goals, you can create a financial plan that reflects your values and aspirations.

Step 2: Understanding the Basics – Investment Options Explained

Investing might seem like a mystery, but at its core, it’s about using your money to make more money. There are different ways to do this, and each comes with varying levels of risk and potential reward. Let’s break down the most common investment options:

1. Stocks

When you buy a stock, you’re purchasing a small piece of ownership in a company. If the company does well, your stock increases in value. Stocks tend to offer the highest potential returns, but they also come with more risk. Think of them as the high-reward option for long-term goals.

2. Bonds

Bonds are essentially loans you give to the government or a corporation. In exchange, they pay you interest. Bonds are generally considered safer than stocks but come with lower returns. They’re great for balancing your portfolio with more stable investments.

3. Mutual Funds and ETF's

Mutual funds and exchange-traded funds (ETF's) pool money from multiple investors to buy a diversified mix of stocks, bonds, or other assets. This diversification lowers your risk, making them an excellent choice for beginner investors. ETF's often have lower fees than mutual funds, so they’re popular for low-cost investing.

4. Real Estate

Real estate investing involves buying property to generate income or appreciation. While it can offer steady cash flow, it also requires more capital upfront and involves additional responsibilities, such as property management.

Step 3: How to Start Investing – A Simple Strategy for Beginners

Now that we've gone over and defined different types of investments, let’s talk about how to get started.

You don’t need to be a financial expert to invest successfully.

Follow these basic steps to create a beginner-friendly investment plan:

1. Set Up an Investment Account

The first step is to open an investment account. This could be through a brokerage firm (like Fidelity, Vanguard, or Charles Schwab) or through a robo-advisor (like Betterment or Wealthfront) if you want a more hands-off approach. A traditional brokerage account allows you to buy stocks, bonds, and other assets, while robo-advisors automatically create and manage a diversified portfolio for you.

2. Decide How Much to Invest

A common misconception is that you need a lot of money to start investing.

Not true!

You can start with as little as $100 and build up from there.

The key is consistency.

Even small, regular contributions add up over time, thanks to the power of compound growth.

3. Diversify Your Portfolio

Diversification is about spreading your money across different types of investments to reduce risk.

Imagine your investment portfolio as a basket of eggs.

You wouldn’t want all your eggs in one basket, right?

Similarly, you shouldn’t invest all your money in one stock or asset.

By spreading your investments, you protect yourself from losing everything if one investment goes south.

Step 4: Debunking Common Myths About Investing

Many women hesitate to start investing because of fear, misconceptions, or lack of knowledge. Let’s address some of the most common myths that hold women back:

1. “Investing is too risky.”

Every investment involves some level of risk, but the greater risk is not investing at all.

By not investing, you’re letting inflation eat away at your savings over time.

With a well-diversified portfolio, you can balance risk and reward effectively.

2. “I need to be wealthy to invest.”

This couldn’t be further from the truth.

You can start with a small amount of money and build your investments gradually.

Apps like Acorns and Stash allow you to invest spare change, making it easy to get started without a big upfront commitment.

3. “I’m too old to start investing.”

It’s never too late!

While starting earlier does give your investments more time to grow, there’s still plenty of time to benefit from investing in your 40s, 50s, and beyond.

The key is to align your investments with your goals and timeline.

Step 5: Building Confidence as a Female Investor

Investing can feel daunting, especially when you’re just getting started.

But here’s the secret: the more you learn, the more confident you’ll become.

Start small, educate yourself, and remember that investing is a journey, not a race.

Practical Tips to Boost Your Confidence:

- Keep learning: Read books, listen to podcasts, and stay informed about the basics of investing.

- Track your progress: Seeing how your investments grow over time will build your confidence and encourage you to keep going.

- Find support: Join investment communities or work with a money coach who can guide you through the process.

How Melissa Went From Investing Novice to Confident Investor

Let me introduce you to Melissa, a 50-year-old architect who always felt overwhelmed by the idea of investing. For years, Melissa relied on her savings account for security, but as she started thinking about retirement, she realised her savings alone wouldn’t be enough to sustain her lifestyle.

Melissa came to me feeling anxious about where to begin. We worked together to identify her financial goals and create a simple investment plan that aligned with her vision. She started small, setting up a retirement account and investing in low-cost ETF's. As her investments began to grow, so did her confidence.

Today, Melissa is an empowered investor. She checks her portfolio regularly, contributes consistently, and has even started exploring real estate investments. The fear she once had about money has been replaced with excitement and a sense of financial freedom.

Final Thoughts: Take the Leap and Start Investing Today

Investing doesn’t have to be complicated or intimidating. By taking small, consistent steps, you can build a portfolio that works for you, aligns with your goals AND sets you on the path to financial independence.

As a money coach working exclusively with professional women, I’m here to help you navigate the world of investing with confidence. If you’re ready to take control of your financial future, let’s connect. Together, we can create a personalised investment strategy that empowers you to achieve your goals and build lasting wealth.

While you’re here, be sure to snag my free workbook, Map the Gap.

It’s designed to make money goal setting a breeze - so easy and effective that it’s perfect for building into your regular routine. Even if you’re just dipping a perfectly polished toe into the world of Money Coaching, you’ll find it simple to dive in and get started. Trust me, the results will be so fabulous you’ll be amazed!

There’s nothing to lose except your fear of failure, so go ahead and grab your copy here.