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Why Women Invest In A Different Way Then Men

Jan 3, 2008
Men are from mars, and women from Venus. This is an age old adage that implies that the thinking of men is very much different from the thinking of a woman. Men and women look at everything in life with a different point of view. Even when investing money, men and women adopt different strategies and steps for the best investment.

Most of the time men can only concentrate on one thing at a time but women can do several things at once.This also happens when it comes down to investing.Men tend to invest in the more risky investment opportunities with bigger potential returns while women diversify and look for the investments with lower risk.

It is this difference in thoughts of investing money that gives men and women different criteria when investing money. It is difficult to proclaim which method of investing is better or worse as the investment style of women is just as successful as a man's investment style. The only difference is that women are generally more creative than men in their investments.

Men like to do the investing themselves without any help from the outside.They rarely talk about their investment approach with outsiders.If they decide to ask for advice most of the time they will turn to a broker or investment advisor.But women like to join investment clubs for advice and strategy discussion as women are more social in nature.The less experienced women tend to do this more often ten the experienced female investors.

Once they join one of these clubs they will look for the most experienced members to share their ideas and absorb the knowledge available.When women decide to join one or more of these clubs they should try and find clubs where there are women who have a lot of experience and advice that can be trusted.If they join clubs filled with a lot of novices there is a good change that the tips and advice given turn out to be worthless and if followed this might end up in losing your well earned money.

Consulting a financial consultant or investing in an investment fund with a solid performance level is propably the best way to go as they are far more experienced and can also help the investor with things like complicated tax regulations.This way the chance of losing your money can be reduced quite a bit.

As women are used to running a household on a day to day basis and managing the household funds and men are in to buying the more expensive things like the family car they will also put this to their advantage.They might see the price of gasoline go through the roof and do some research on oil companies giving them an investment opportunity.They know which are the hottest new brands when it comes to the kids toys and do some research on the companies who make these toys which can result in another investment opprotunity.

Women also make it a habit of setting up a direct debit where some money is debited into the account every time a paycheck is deposited in the checking account. Small amounts of money accumulate into a large amount that will lead to a healthy bank account in 20 - 30 years time. So it can be seen that women prefer looking for creative ways of saving and investing money instead of investing one large sum of money in an investment.
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