In the UK, more than half of women take on the responsibility of managing household finances. Specifically, women handle about 55% of household financial management.1 From budgeting for groceries, to planning for holidays, paying household bills and arranging annual insurance, we often refer to this as ‘life admin’ but in reality women often take on the role of Chief Executive Officer (CEO) of their homes. This experience equips them with a unique set of skills that are directly transferable to the world of investing.
The role of the household CEO
Managing a household budget requires a keen eye for detail, strategic planning, the ability to make informed decisions, create a trustworthy/credible team around you and adapt as circumstances change. Women regularly balance income and expenses, prioritise spending, and save for future needs. These tasks mirror the fundamental principles of investing.
Women who manage household finances are often proficient at planning. They set financial goals, whether this is working towards changing jobs, wedding planning, moving home, starting a family, paying for education or saving for retirement. This involves researching options, comparing prices, speaking to others and making decisions that will benefit the household in the long run. Similarly, investing requires setting financial objectives, planning, researching investment opportunities, making choices that align with your goals, working with others, adapting to changes in circumstances and reviewing on an ongoing basis.
Risk management
Household financial management also involves risk assessment and mitigation. Women often navigate unexpected expenses, such as medical bills or home/car repairs, by maintaining an emergency cash fund. This practice is akin to managing investment risks, where one must be prepared for market fluctuations and unforeseen events, although this will always be alongside cash reserves, as with investing it is important to diversify and not have all your eggs in one basket. By understanding and managing risks at home, women are well-equipped to handle the uncertainties of the investment world. When investing it might be that you have different segments of wealth with different levels of risk/reward but that is ok and it is our job to support and build all of the small elements into a wider plan.
Confidence in financial management
Despite their proficiency in managing household finances, many women feel apprehensive about investing. This hesitation often stems from a lack of confidence or the misconception that investing is complex, requires specialised knowledge and are uncertain of the entry levels i.e. how much money do you need to start investing. However, the skills women use daily to run their households are the very skills needed to help succeed in investing. By recognising their capabilities, women can approach investing with greater confidence and assurance.
Empowering women to invest
Women might be unsure of where to start, the terminology and industry jargon can be off putting but that is where we can work alongside you. It is our job to help you understand and prioritise your aims and objectives, we can then help you build a plan, agree how much risk you need to take to achieve those goals and then do the heavy lifting for you. Many women spend their lives putting everyone else first and caring for others, they don’t always have the time or the inclination to invest themselves and therefore that is where working as a team can really help. It is now time to do something for you, your future self will thank you for it.
Conclusion
Women have long been the backbone of household financial management, demonstrating remarkable skills in budgeting, planning, and risk management. These abilities are directly applicable to investing, making women well-suited to take charge of their financial futures. By recognising and leveraging their existing skills, women can confidently step into the world of investing and achieve their financial goals. We are there to support you, and work alongside you.
It doesn’t matter if you have £100 or £1m+, it is time to take action and do something for you. Right now your future is in your hands, let us help you realise your own hopes and dreams.
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0203 418 0257
info@onekc.co.uk
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