Changing your money mindset – Investment strategies for women
I’m the type of person who needs to be moving, doing, creating. Making something out of nothing. A few years ago I started this blog as a side hustle to create a passive income stream…but I wanted to do more to cement my future… I already had a handful of shares in some pretty cool tech companies but I knew that I had to do more to invest in my future as woman and for my family.
The property market where we lived was still reasonable and I wanted do something bigger to secure my (and my families) future. I developed a vision board and on this vision board I put both an investment property and a holiday home for my family. This is what I would achieve. I have a theory that achieving goals is in the action. Make a plan and do it. Making decisions is the hardest part!
So, I chose to diversify my income streams. I would create multiple streams of income – some passive, that would not only set me up for the future, but would also go to work FOR me. I didn’t want to be bound by the 9-5, so I needed a plan to build wealth. One that was sustainable and one that would enable me to quit the 9-5. Apart from creating a business, and building income streams from that, I would also start investing in property, continue investing in startups and dip my toe into the world of cryptocurrencies.
Women planning for their financial future is a topic thats super important to me. The more we can read and learn about types of investment strategies as women the more empowered we can be to set ourselves and our families up for financial success. This article talks about three investment strategies that I currently use. This post is not intended to be financial or professional advice. You’ll need to consult your appropriate financial advisors for that. It’s simply my experience.
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The best time to buy property is yesterday. The second best time to buy property is today! ha ha ha. So, so true. It’s never a good idea to wait in my opinion. Once we decided that this was a goal of ours. We set forth on attending open homes and making ourselves a list of what exactly it was we were looking for in an investment property.
We would be looking for a 3 bedroom home in a central suburb. With easy access to town and all amenities. Something that was in good condition. Easy care and would not require a whole lots of work. We initially looked at a couple of places that were in need of some TLC- but our strategy, we discovered was more buy and hold. Not buy and do up.
We didn’t intend to sell in the short term. So it was not going to be a flip. Nor did we intend to do any major renovations. This is super important to get your head around. What is it exactly that you are looking for? Do you want to buy, renovate and flip? Are you prepared to do extensive renos, in order to get something a bit cheaper and add value? Or do you simply want a good solid investment that you will hold and hopefully reap the capital gain over time?
We wanted somewhere that we, ourselves would happily and comfortably live. Being a great landlord and offering a product to the rental market that was of exceptional quality was paramount to us. We wanted to offer a quality product.
So, we set out to find something that required little work. Was sunny and dry. Had 3 beds and 2 baths. And would be somewhere that was easily rented out. I put a picture of my perfect investment property on my vision board.
We probably only went to around half a dozen open homes over the course of maybe a month. Then… we found a property that ticked all our boxes. And made an offer.
The offer strategy for us was simple. Figure out our maximum, best offer and communicate to the agent that this was our best and final. We made an unconditional offer. The market was moving pretty fast and we knew in order to get the property, unconditional was what we had to do. This is totally up to you, and doing your due diligence is super important. But, for us, we knew the issues we might face, and were prepared to weather that.
There were 5 other offers on the home and we won the bid. It was pretty uncanny, the property we bought was almost identical to the one I put on my vision board. (Vision boards work people! You can easily create yours in Canva.
It’s an easy rental. A beautiful villa we would be happy living in ourselves. We will hold this for a number of years. Our tenants so far have been amazing and it’s been super easy to rent out. The market has already shifted and the property is worth a lot more now than it was 2 years ago. But, markets shift up and down and you have to be prepared to hold during the highs and lows.
My top tips for buying an investment property
- Set your budget and stick to it
- Know your strategy- reno? flip? hold?
- Figure out your wish list and must haves
- Start as soon as you can
- Ride the market waves
Investing in startups
The second investment strategy I want to talk about is angel investing. Straight up. This one is risky. Angel investing is all about taking a punt on companies that you see potential in and hoping that your investment pays off in the long run. I invest in companies that I see major market and disruptive potential in. But, most of all companies who have leaders who can pull off the impossible.
Angel investing isn’t for the faint hearted. And, typically you need to invest in 10 or more companies in order to potentially see a return.
There are great Angel networks in every city. So if this is something you want to look into, head along to a meetup. Some incubators also have events where you get the chance to see new companies and their offerings. These types of events are good because the companies are usually heavy vetted for you in advance. You can then often join a pool of investors that means you don’t have to put in too much.
Angel investing is risky. But if you diversify and spread the risk over 10 or more companies. Or, like me, invest in those companies you have a personal relationship with. Then it can be both rewarding and lucrative. But, be prepared to wait it out. And, be prepared to lose your money! Angel investing is one of those types of investing that you should only do if you are prepared to risk for big rewards but are also ok with the thought that it may not pay off, ever.
Tips for getting started with Angel investing
- Find a local Angel investing group near you
- Do your due diligence
- Be prepared to invest in 10+ companies to see a return
- Know that this is high risk
- Join a pool fund to get started
Investing in Crypto
Ahhh this ones contentious! You either love crypto or you don’t. I met the CEO of my current company when we both worked at a Cryptocurrency company here in New Zealand. I learnt a lot during my time there and also caught the crypto bug! It was a whole new world and something that was massively interesting to me.
My crypto strategy is really, really simple. I invest in 2 two main currencies Bitcoin (BTC) and Ethereum (ETH) and a handful of alts that I love. Everyones strategy is different. But for me- its all about buying when the price is low -when the line turns red = sale day! And holding. I don’t watch the markets or try to play them. I literally invest a small amount, regularly and then hold. Crypto for me is a long term investment strategy. I’m not in it to make a quick buck. I typically invest $50 or $100 at a time – regularly.
BTC amasses a market cap of over $900 billion dollars and accounts for over 40% of the total crypto market. And ETH, while ETH has a lower market cap – around 20%, the Ethereum network is one of the most used on the blockchain. This means it has real world application. You can buy NFTs with ETH for instance. NFTs are non -fungible tokens which are digital assets that hold value on the blockchain. ETH for me seems to be a usable currency, whereas BTC for me, is a value holder.
I also invest in a handful of Altcoins- some for sheer fun. Dogecoin is one of these. I don’t expect DOGE to ever hit above $1, but its fun and is a part of my overall strategy. But, who knows…
Coinbase and others like Kraken are platforms or exchanges where you can buy and sell crypto. Kraken is a bit more advanced, and Coinbase would be my pick for newbies who want a simple platform to trade with. Coinbase has a mobile app- that’s really easy to use.
You’ll also need a wallet to store your crypto in. Coinbase is a great one for beginners and Exodus is also a great option. These are both called hot wallets and are on your PC and/or mobile. You can also set yourself up with a hardware wallet- which is offline and more secure. Typically, you’d do this if you had larger amounts of crypto to secure. Trezor is meant to be a goodie, as is the Ledger Nano.
There’s lots of strategies for investing in Crypto. I tend to buy when its in the red and do it sporadically, others set an amount aside each week or month and invest on a set day to ride the highs and lows.
Top tips for getting started with Crypto
- Buy when red (a dip)
- Hold and ride the wave when it drops
- Choose a handful of coins to get started, include ETH or BTC
- Choose a reputable wallet
- Try Coinbase as a trading platform
None of these investment strategies are bullet proof, shares crash, property drops and crypto is notoriously volatile. Pick your risk level and be prepared to weather any storms.
There is no perfect strategy for investing, but I wanted to start somewhere and diversify how I planned my future. I have a main job I love, a side hustle where I make affiliate income and a handful of investment strategies that Ive described above which are all long term strategies for my future. What works for me might not work for you.
Disclaimer: I’m not a financial expert – always seek professional advice before making investment or financial decisions. This is my experience only and is not meant to be financial or investment advice. What works for me may not work for you and the level of risk tolerance for each person is different.