A recent survey highlights that 90% of women investors believe they are “on the right track” toward achieving their financial goals. Despite this confidence, a significant number of respondents expressed a common regret: 85% wish they had started investing at an earlier age. These findings underscore the importance of early financial planning and investment for women. This is particularly the case for individuals who assume more hands-on, decision-making roles in their homes.
Each participant had a minimum of $5,000 in investable assets, excluding retirement accounts and home equity. All respondents identified as primary or joint financial decision-makers in their households, indicating a proactive approach to managing their finances. Of the women surveyed, 58% said they were taught to stick it out with investments even when the market swings. At the same time, 42% pointed to writing down a budget and following it as key.
Encouraging young people to begin investing while they’re young can have a lasting positive effect on an individual’s financial future. At the end of $6,000 a year invested with a 7% annual return compounded, it’s incredible! When you reach 67 years old, your retirement savings will have increased to almost $1.5 million. Beginning at age 30 would only result in a little more than $1 million by retirement. That five-year difference in starting age could mean another half a million dollars on top of that.
The survey revealed that 54% of women investors attributed their delayed entry into investing to a lack of financial knowledge. Likewise, 53% said not having enough money was an obstacle to starting their investment journeys. Millennials tend to begin investing at the median age of 27. Compare that to starting Gen X at 31, Baby Boomers at 36—further evidence of a later push into investing.
Financial expert Carolyn McClanahan told Nerd Wallet that the key is to invest as early as you can. “Start saving while you’re young because you have lots of years for your money to grow,” she stated. The financial payoff from investing early is undeniable. Even modest investments can grow to be worth millions in the long run.
Katie Gatti Tassin, another finance whiz, focused on the mental attitude needed to be an effective investor. She remarked, “It’s not a get-rich-quick scheme; it’s a get-rich-slowly scheme.” This insight appeals to many female investors, especially those who understand that wealth-building is a long-term game that takes time and thought.
OMB’s Jeannie Bidner picked up on this idea, too, encouraging agencies with the words, “The earlier you start, the better.” Her guidance is in line with the top survey result. These results uncover a clear connection between investing early and women’s confidence in their ability to achieve their financial goals.