Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations. On a global average, women earn 23% less than men for the same work. Suffice to say, gender pay gap challenges continue to prevail, and until women and men reach parity, it is even more important for women to take on the mantle of investing their hard-earned money smartly. The question on the minds of women often is — when is a good time to begin investing?

If you are someone who feels unsure about investing, here’s advice to help you, as a woman, become self-sufficient and own the narrative of your finances. Why Should Women Start Investing?

The logical justification for why women should invest is simply because men can, and do. But outside of stating the obvious, investments are a great way for women to grow their income.

If a woman is working, for example, she can apportion some of her disposal income each month and put that in markets. This could help her save for many things: a vacation, a degree, a vehicle, or even have extra money saved for a rainy day.

But a woman need not be working to invest in markets. Perhaps you’re a woman who stays at home to take care of her family. Investing in markets is a strong mechanism to earn money for long-term goals your family may have: buying a home or saving for your child’s education fees. When Should Women Start Investing?

At what age should a woman start investing? Is it when you land your first job? Perhaps it is when you first start making a bit of money? Could it be after a promotion?

The answer, fortunately, is not complex and summarized perfectly by the classic proverb, “The best time to plant a tree was 20 years ago. The second best time is now.” Truth be told, if women were influenced to financially plan their lives earlier, there is no doubt that not only would they be more empowered today but would also have more representation in business environments. While many women are more than fortunate to have found high-growth investment tools when they did, they will tell you that they would be much further ahead if they had pulled the trigger earlier.

With that said, not all forms of investment are indeed ideal for someone starting new. When it comes to investing, some routes are far less challenging, and frankly, less cumbersome than others. After all, who wants unnecessary hassle when it can be easily avoided by just selecting more suitable investments over others? What Kind of Investments Work Better for Women And Why?

When you first begin investing, do so in a way that helps you get the best RoI (return on investment) and bang for your buck. While we are all exceptionally busy, women sometimes have the added responsibility of co-managing work with responsibilities at home. This could make it challenging for them to review their portfolio on a daily or weekly basis.

On the other hand, some women may find that they want to manage their portfolio more actively. No two investment portfolios are the same and that’s why it’s important to be vigilant of how much time you can commit, which in turn can influence your investment options

The following investment options can be ideal for women: Mutual funds

Mutual funds are a good option for any kind of investor, beginner or seasoned. As a woman, you need an instrument that allows you to allocate your funds efficiently based on your goals. If you are a new investor, you can simply begin with a systematic investment plan (SIP). It allows you to invest a certain amount of savings every month, wherein the amount will be auto-debited from your account every month, hence helping you remain committed to your investment strategy. Exchange traded funds (ETFs)

Gone are the days when investing in stock markets required rigorous research and was essentially beyond the reach of the common woman. An ETF is primarily a basket of securities that considers the universe of assets — be it equity, debt, stocks, bonds, commodities, or currencies. You may buy a share of that basket, just like buying shares of a company. ETFs are traded on the stock exchange and offer the ease of stock trading along with the diversification benefits of mutual funds. Stocks

Stocks, otherwise known as equities, represent fractional ownership of a company. […]

source How Can Women Start Their Investment Journey

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