Investing is not about knowledge

Not investing tops the list of financial regrets for 41% of women. My newsletter is a way to make a change to this statistic.

I am Lena, the founder of “Women Investors Club”.

When I started back in 2019 I was convinced that investing was all about the right knowledge. After teaching this program for 5 years, talking to hundreds of women about their wealth and investing struggles, reading, learning and investing, today I can confidently say that financial knowledge is only one element of the formula.

If we want to grow our wealth long-term it is not so much about WHAT we know. It is much more about HOW we behave.

Our financial behaviour, is a product of three elements: our financial knowledge, our financial mindset and our financial habits. Long-term financial success is impossible without continuous commitment to nurturing and improving these key elements.

Is financial knowledge overrated?

In no way do I want to undermine the importance of financial knowledge. Building a solid financial knowledge base equips you with the tools to make informed decisions. In fact, by investing without proper financial knowledge, you'll likely commit at least one of the popular beginner's mistakes, lose a little bit of money, and stay away from the investing game for the rest of your life.

What I want to emphasize is that obtaining essential financial knowledge is more accessible than perceived and does not necessarily require a formal education in finance.

Knowledge is power, but it needs to be coupled with the right mindset and habits to be translated into action.

So how do we know if our mindset supports our future financial goals?

The healthy financial mindset involves boosting your financial confidence and challenging your negative beliefs about money. Improving your mindset will be a personal affair: you may be carrying an idea that investing is only for the very wealthy or fear investing due to negative stories you've heard in the past. Cultivating a healthy financial mindset will help you overcome emotional biases and stay focused on your long-term goals. It will require emotional intelligence and a willingness to self-reflect.

What about cultivating the right financial habits?

Establishing positive financial habits is key to translating your knowledge and mindset into action. These habits ensure you consistently take steps toward your financial goals, even when motivation wanes. There are plenty of ways to design financial habits that will bring you closer to your objectives, considering your finances and personality. Just as you set up your fitness habits, you can establish financial habits that align with your goals. It may take some time, and results might not come immediately, so patience is essential.

This marks the first newsletter of "Investing is for Women" series. In the upcoming newsletters, we will delve deeper into each aspect of the financial formula—knowledge, mindset, and habits—to provide you with actionable insights and practical strategies for achieving your financial goals. Stay tuned for the upcoming newsletters where I will discuss a new approach to financial habits, explore strategies for boosting financial confidence and overcoming common mindset barriers to wealth accumulation.