We are living in times where various social barriers are being broken down, so why not crush this stereotype as well, taking the future of your finances into our own hands. There are many reasons to invest. These might convince you why you should do so today.

1. On average, we earn less than men

The wage gap between men and women in Slovakia belongs among the highest in the European Union. In 2020, the difference in monthly earnings was 17.8%, with men earning an average of €1,446 and women €1,191. Women receive 81.6 cents of each euro earned by men.

Poland has the best situation among CEE countries, with a 4.5% difference between the gross monthly earnings of men and women. Yet, the EU average stood at 13% in 2020. Even in the developed world, the pay gap is still a major labor market problem, and women are often at a disadvantage compared to their male counterparts.

Despite all the efforts that we are making as women, it looks as if this pay gap is not going to close any time soon, as evidenced by the fact that its magnitude has not changed much over the last 10 years and remains in the range of 18% to 21%. And that is just the tip of the iceberg of reasons why women need to invest more than men.

Source: platy.sk

2. Women live longer and need more money in retirement

According to the World Health Organization, women live on average 6 to 8 years longer than men. With less income due to the pay gap, coupled with a lower retirement age in some CEE countries, women receive lower pensions than men. For instance, the average difference in pensions for men and women was almost €100 in Slovakia, according to 2019 data from the Statistical Office of the Slovak Republic.

I certainly don’t want to scare you ladies, or myself, but in the long term, by the time we retire, we may also find ourselves at risk of poverty in the autumn of our lives, not always a simple period. Sadly, the risk of poverty is greater for female pensioners than for male pensioners. You can find out more on this topic within other content by Finax.

Source: Eurostat

3. Investing will double your funds in the long run

Whether you're a mother who wants the best for her children or a woman focused on her career, one thing is for sure: having extra money will pay off in the future. You'll be able to send your kids to their dream school and ensure they have the best future possible.

Setting money aside for your children is always a good idea, as it can later cover anything from medical expenses and school fees to a dream wedding or kickstarting their life.

4. You can get passive income without much effort

Perhaps you're struggling with a question that doesn't have a completely uniform answer: when should I, as a woman, start investing? After getting hired for the first permanent job? Or rather when I start making a little more money? Maybe I should wait for a promotion... It's never too late or too early to start your investment journey. 

As a student living in Bratislava, I can say that even while studying and managing my food and accommodation expenses, I still manage to set money aside for investing alongside a traditional part-time job.

Don't be afraid to start even with smaller amounts. Your future self will surely thank you for it. This way, you can earn extra money on top of your regular monthly income without much effort. If you work hard, why shouldn't your money work as well?

5. You will gain practical knowledge of finance 

You might know the theory of investing backward and forward, making talks about finance no problem for you. But you're still scared to take the step that would give you practical experience. As the saying goes, "you never know till you try".

This is also true when it comes to investing. In the financial markets, not everything is perfectly lined up, and we don't always get an investment to work out the way we expected. But that is the slight risk we must take.

Risk brings returns, and nothing teaches you to navigate the financial markets better than investing in practice. Fear is natural. However, you can always turn to someone who has been in the markets for a long time. At Finax, we are happy to help with that as well.

6. You will learn to handle your money well

When investing, you can also acquire a good routine for managing your income in addition to practical experience. Many people experience trouble prioritizing and balancing their monthly paycheck, counting each euro at the end of the month.

However, investing can teach us to plan and save where we can and conversely to avoid unnecessary spending where it is not necessary. Ideally, money management should be taught from primary school, but it is never too late to jump on the bandwagon and learn how to handle our funds appropriately.

Had we, not only in Central Europe, been encouraged to plan our financial lives earlier, we would surely have not only higher positions but also a greater presence in the business environment today. Those women who have had the luck and courage to find the right investment portfolio that works for them should be an inspiration to all those afraid to take that crucial step.

The world of finance, investing, and business isn’t exclusively for men anymore. Various studies prove that the investment behavior of women is actually better than that of men. If you want to handle your money properly and watch it grow, you must be the person to make the first step. However, beginnings can be difficult, and we at Finax can and will be happy to help you start your investing journey well.