Why young women should invest early

4 tips—and one major benefit of starting now

If you’re a young woman just starting to think about your financial future, the thought of investing may seem a bit daunting. It’s easy to get overwhelmed by terms like ‘asset allocation,’ ‘risk-adjusted returns,’ and ‘liquidity’. Plus, there’s the pressure of making the right choice and growing your wealth.

It’s not just about having a comfortable retirement one day – investing now can also help you navigate life changes with the help of financial security.

Why women need to get a head start

Women face some unique financial challenges that make it even more important to start investing early. Here are a few:  

• 1. Longer lifespan
  On average, women live longer than men, which means they need to plan for a longer retirement period. To maintain quality of life well into your golden years, investing early is key to building up a retirement fund that will last.
• 2. Career gaps
  Many women take career breaks for things like maternity leave or caregiving responsibilities. These interruptions often lead to fewer years of contributing to retirement savings. Starting to invest early can help make up for those gaps and ensure you have enough saved for the future.
• 3. The gender pay gap
  While we’ve made some progress, women still earn less than men on average. This wage disparity makes it even more critical for you to take control of your financial future through investing, so you can accumulate wealth and bridge the earnings gap over time.

How to break through barriers

The good news? It’s not as hard as it might seem. Here are four practical tips to help you take charge of your financial future:

• 1. Find a good financial advisor
  If you're feeling lost, we can help you chart your path. We’ll help you understand your options and feel empowered to make informed decisions.
• 2. Ask questions
  Whether it's talking to your advisor, finding a support network, or chatting with friends who understand investing, asking questions is important to help you get started. Don’t be scared or embarrassed to ask. It’s not about knowing everything right away— it's about getting curious and learning as you go.
• 3. Boost your financial literacy
  Start with the basics and build your knowledge (and your confidence) over time. There are plenty of resources—books, podcasts, online courses, and even social media accounts dedicated to financial education.
• 4. Stick to the basics
  It doesn't need to be complicated. Start with saving consistently, living within your means, and getting familiar with investment basics like index funds and ETFs. As you grow more comfortable, you can start exploring other strategies.

The biggest factor in your favour

Here’s the most powerful thing working for you: time. You’ve probably heard the saying, “time is money”, because it holds serious weight when it comes to investing. Here’s why.

A longer time horizon gives you options and flexibility.

The longer your investment horizon, the greater your ability to take on risk. Why? Because time allows investors to ride out market downturns and benefit from subsequent recoveries.

Each investment, whether stocks, bonds, funds, ETFs, or alternatives, has its own objectives, risk profile, and expected returns. Historically, riskier and more volatile assets, such as stocks, have delivered higher long-term returns compared to safer, less volatile investments like bonds or cash. A longer investment horizon enables you to explore a wider range of investments across the risk spectrum.

Starting early also allows you to harness the power of compounding.

You’ll earn returns not only on your initial investment but also on the returns that accumulate over time. The earlier you begin, the greater the potential for long-term growth.

Talk to us today.