How to "Invest Like a Woman"
is the CEO and Co-Founder of Ellevest, a digital investment platform that helps women take ownership of their money. She was once, one of the most prominent women on Wall Street, coming in seventh on Forbes’ list of The World’s 100 Most Powerful Women in 2005 and has been a guest on The Daily Show with Trevor Noah, CNBC, and ABC News.
Starting her Wall Street career as an equity analyst, Krawcheck was soon appointed CEO positions at Citigroup and Bank of America, under the Wealth Management & U.S. Trust divisions. However, due to the male-dominated demographic and lack of diversity that created problems of leverage and greed, Krawcheck eventually left Wall Street for good.
Krawcheck created Ellevest for women who felt tired of being underrepresented like herself. Here are her top five tips to help you start investing:
Get ride of high-interest rate debt. Credit cards, double-digit interest rate loans, student loans etc.
Have an emergency fund. You want to make sure you have enough money saved in case of an emergency. Ideally, this would be three to six months' of take-home pay, held in a savings account.
Ask about 401K at your workplace. These days, many employers will match employee contributions by 3-6%, which goes back into the employees 401K towards their retirement plan.
The 50/30/20 Rule. 50% of your take-home pay goes to rent, utilities, work clothes, etc. 30% goes towards fun; yes, happy hour is included. 20% goes towards saving & investing for the future you - Grandma You, as Krawcheck likes to say.
Don’t wait, just do. Stop pushing it off and start investing now. 20% would be ideal, but no matter what, start with 10% of your take-home pay. If you can only invest 1 or 2 percent, start with that and increase the amount overtime. The key to retiring rich on an average income is to, “pay yourself first.”