Why women need to stop saving their cash – and start investing

An adage in the financial sector goes that women save and men invest – and this still rings true. It seems that even women who have money to put aside tend to squirrel it away rather than try to grow it.

In 2017, the last year for which data is available from M-Akiba, only 36.8 % of women invested n the government's stocks and shares.

The rise in the number of women's money diaries published in print and online is proof of a growing fascination with how much women earn, spend and (if they are lucky) invest or save. This year, a raft of financially savvy women will publish books about women's financial security. And numerous seminars, websites, and podcasts are explicitly aimed at potential female investors who want to dip a toe in the stock market.

So how do you make a start?

The first thing you need is a change of mindset. Women's dependence on savings accounts is "recklessly cautious." With that in mind, a financial adviser is an excellent place to start, but it will cost you. If paying for advice is not an option, many websites help women make the most of their money. See?Savvy Woman ,?the Money Whisperer ,?Vestpod , e.t.c.

Women blog about being thrifty and frugal, and men talk about investing and growing their wealth. An excellent way to start is thinking about what you would do if someone gave you Ksh 5,000. Don't save it and try to make it go as far as possible; think, 'What can I do with ￡50? What can I grow it into?'"

How much money do you need?

"Because we have less money, we prefer to hold some in cash, so we've got an emergency fund if we need it." That is not a bad idea, but it may not take as much as you think to start investing. A monthly Ksh 3,000 monthly payment is enough to get you started. Investing monthly rather than lump sums helps you spread your risk. When the stock market is doing poorly, you get more shares for your money – good news when it, hopefully, bounces back.

Should I go for funds or shares?

Investing in shares in a single company, or just a handful, is a high-risk strategy, whereas a fund will pool your money with other people before investing, so your money is spread across a large number of shares.

A primary tracker fund can be a good starting point. These follow the performance of a stock market, for example, the NSSE all-share index, so they offer an easy-to-follow investment in companies you have heard of. Look for low fees, so if you can invest only a tiny amount, it will not all disappear before it reaches the stock market. Many online services offer a readymade portfolio of investments – you decide how much risk you can afford to take, and they pick you a suitable range of assets. As a rule of thumb, the sooner you need the money, the less risk you should take. Holding the investments in stocks and shares Isa will mean you won't need to pay tax on the returns.

When is a good time to start?

Right now. There is plenty of advice around. As Bellet says, more women than ever are writing about money. Her book, You're Not Broke, You're Pre Rich, is due to hit the shelves in May. And?We Need To Talk About Money, by Otegha Uwagba. Uwagba says she hopes her book will be "the jumping-off point for a generation of women to begin having the long overdue conversations about the money we're all so desperate to have." The best way to invest is with monthly payments, so there is no need to wait until you have a lump sum.

What will I get out of it?

When women invest, they do a better job than men. Women take a more long-term perspective, trading less frequently. It possibly means women invest more to support their financial goals and thus get higher returns.

"You must gain control over your money, or the lack of it will forever control you." - Dave Ramsey.