Finances for women
This is a project close to my heart! Simply because I keep hearing the same thing from friends, colleagues, and female family members over and over again: “I can’t save anything”, “I don’t know how to invest”, “Investing is only for people with a college education”, and so on and so forth. I have been talking about this until getting blue in the face and that’s why I’m going viral with this now. I want to help women of all ages, education levels, or any other backgrounds become financially independent. The risk of poverty in old age is very high: Women over 65 get on average 46% less pension than men (OECD study). Reasons for this are that women are more frequently employed part-time work or work on lower salaries over the course of their careers.
In addition, women often do not take care of their finances themselves. However, the only wrong decision you can take when it comes to money is to rely on other people’s bad advice, hope for a pension or park all your money in a savings account. If women are capable of masterfully organizing so many areas of their lives, then it is now time to unlock their potential in organizing their finances as well.
I want to take the important first steps with you together, such as opening a custody account and setting up your first savings plan. No, I am not an investment banker. I’m just curious and investing is fun for me.
Finance is the new sexy
Investing is sexy, smart, and gives you independence. You may have heard it before: Your money isn’t growing on your savings account and is instead eaten up by inflation. So you will be burning money and as a consequence are ill-prepared for your wildest years in retirement.
If we want to spend our earned pension carefree with travels, beauty, and the finer things in life, we cannot ignore the possibilities funds, ETFs, or shares provide. I want to prevent women from falling into retirement poverty or financial dependency by turning ignorance into knowledge. Maybe you have already read one or the other guidebook but still just don’t dare? I can help you take these first steps towards your own financial independence. The conventional wisdom is that the stock market is risky, but I am convinced that NOT investing is actually an even bigger risk.
First, let’s clear up the prejudices. I hear the following assumptions and questions over and over again. I’ll try to answer the most important ones briefly and in a plain way:
Yes, a little basic knowledge is important, but you will acquire that quickly. You don’t have to invest a lot of time, because some smart women have already done that for you.
My top stock market women are Madame Moneypenny and Beate Sanders (German Ladies). Spend some time on yourself and read up on these topics, and the first step is already done. As Beate Sanders says so well: First book, then internet, then online trading. That’s it. You will soon realise that investing is not witchcraft and that you can do it easily by yourself.
You open your brokerage account, think about your strategy and buy your first positions. Then you sit back and watch your independence grow.
You don’t have to start big. Even with small but regular contributions you can build up financial security. So if you don’t earn much, try to save 10% of your salary (but at least 50 Euros per month if possible) by automatically transferring this money directly into your savings scheme on the day you receive your salary. You will see that you won’t even notice the missing sum, because you practically never see it. But after a while, the amount will show up in your deposit and start generating value for you.
On the contrary: it’s never too late to start and it’s always, always, always worth it. Life expectancy is increasing: a girl born today has an average life expectancy of 83 years. So investing money is still worthwhile at 65. Every day you wait for something is a day lost.
If you save 100 euros every month for 10 years, you will have a maximum of 12,000 Euro in your savings account (without inflation, which reduces the value of your money). If you invest the money, you will have 17,200 Euro in your securities account, calculated with approx. 7% interest. That is 5,200 Euro more generated with the same amount “work” – do you want to give away so much money just like that? This doesn’t even include potential dividends. You can easily calculate your own model at Offerio (happy compound interest): http://www.offerio.de/sparplan-rechner.php.
Beate Sanders started with investing at the age of 60 and turned 30,000 Euro into over 2 million Euro in 20 years.
And if the marriage fails or he can no longer work because of health reasons? These are scenarios that no one wants to imagine, but it’s much easier and more carefree to love and live when you have your own financial feet on the ground. Besides, are you sure he’s investing your money wisely? Maybe you do it better ;)
Almost all online banks offer free brokerage accounts. There are always tests on this. For example, here: https://madamemoneypenny.de/aktiendepot-konten (GERMAN). I’ve had mine at ING-DIBA for years and I’m very satisfied with it. If you would like to open one there as well, please use the following link: https://www.ing.de/depotkwk/a/FhStoEueTB*.
For every new customer acquired, 40 euros are donated to Unicef. This way we will do something good together and helped others with your step into independence.
*PS: This is not paid advertising, I use the depot myself too and receive nothing except this Unicef donation for my recommendation.
As I said, it’s not witchcraft. Just think about what’s happening in the world right now: what are the future trends? Which goods are needed and which companies benefit from the demand? For example: healthcare products, digitalisation, robotics, artificial intelligence, water and waste management, energy, cyber security and many more.
In the stock market, you have a very wide choice. All sectors in all regions of the world are rarely declining at the same time. However, if you use your money to buy shares in only one company, you are taking a big risk. But you can also buy shares in companies from various sectors and countries of the world. In this case, the risk is widely spread.
This does not mean that you have to invest in hundreds of individual shares to minimise your risk, because there are other products for this, e.g. ETFs (Exchange Traded Funds). The best known, for example, is the MSCI World. It contains shares of over 1600 companies. So with one investment you buy shares in more than 1600 companies worldwide. You can’t spread the risk any further than that. There are many different ETFs – for the DAX or other indices, for example, for technology companies, for emerging markets, sustainable companies, etc.
Yes there are crises, like the one we have right now, but smart women buy when valuations are low. So there is no better time to get in. After a crisis, there is also a high. That simply has and will not change, never, never, never. The biggest risk is not taking any risk.
To start with, I recommend that you only invest in companies, ETF or shares that you believe in for the long term and just leave them in the portfolio. So you don’t need to invest much time in managing your portfolio, except for the time you invested in your research at the beginning. When you become more courageous and want to risk a little more, you can delve deeper into the subject. Beate Sanders’ books are my favourite source. She has developed the high-low courage strategy. Never invest without knowledge and also never touch your nest egg.
Ok, a lot of women have that problem. When you meet up with your friends or colleagues, instead of talking about kids, clothes or your job, just agree to talk about finances once a month. Support and give each other advice. I am organising an online Money Roundtable once a month. With wine, water or tea, we discuss financial topics in an hour in intimate company.
The Money Stammtisch is currently available only in German. Drop me a message, if you are interested to have an English one. If there are more ladies, I will set this up.
My gift to you
I recorded a video for you. It shows you how to open a portfolio, search for stocks, ETFs, or other securities. I will also show you how to set up a savings plan.
Okay, you are still not convinced and don’t dare to touch this subject? Then we can arrange an individual appointment. I will help you with taking the first step. I will support you in finding the right products for you, show you what you should look out for and how you can put together a portfolio with a balanced risk level for the beginning. I will accompany you on your journey towards financial independence. Where and how much you invest is up to you. Please note that I do not give investment advice.
My offers for you
|Die Basics/The Basics|
Der Grundlagenkurs für Deine persönliche finanzielle Unabhängigkeit.
|Die Fortgeschrittenere / The Advanced|
Wir bauen die Grundlagen Deiner Finanzstrategie gemeinsam weiter aus.
|Individuell / Individual|
Session für Deine ganz persönlichen Finanzfragen