Tracy Z, the founder of Wize Women Investors, emphasizes the importance of two critical principles in building wealth and closing the gender wealth gap: "Invest Early" and "Invest Often."
- Invest Early: Women should start investing as early as possible. The power of compounding is a critical factor in wealth accumulation. By investing early, individuals give their money more time to grow and generate returns. The sooner one starts, the greater the potential for their investments to appreciate over time.
- Invest Often: Regular, consistent investing is also crucial. This principle encourages women to make regular contributions to their investment portfolio, such as through monthly or quarterly contributions, rather than trying to time the market or invest in large lump sums. Consistent investing helps to mitigate the impact of market volatility and can lead to steady and sustainable growth over time.
The idea behind these principles is that by starting early and consistently contributing to their investments, women can build wealth more effectively and close the gender wealth gap. Historically, women have faced disparities in terms of income, savings, and investment opportunities, which have contributed to the gender wealth gap. Following these principles can help women overcome some of these challenges and work towards achieving financial security and independence.