One of the many ways you may help other women is through your financial investments. In this installment of “Financially Savvy Female,” we speak with impact investor, author of “The Good Your Money Can Do,” and general manager of Beyond Capital Ventures, a women-led impact venture capital firm, Eva Yazhari about the most effective ways to use your investment dollars to empower other women.
Fund Organizations Where Women Are Executives!
By backing businesses with female founders, leaders, and board members, investors may help propel the careers of individual women as well as the entire female population.
According to Yazhari, this trend results in services and goods that are more considerate of and attuned to the demands of women. “Investors might seek for chances like that in markets where clients are underserved.”
Investing in Businesses Run by Women Can Be Done in a Few Different Ways!
According to Yazhari, certain public market funds would not invest in businesses that do not have women on their boards and do not work to help women climb the corporate ladder. “You can make proactive investments in certain funds.”
She elaborated, “On the private side, it’s really about promoting female entrepreneurship, and there are various ways to do that” (such as angel investment, investing directly in companies, and bolstering ecosystems that encourage women to start businesses in developing nations).
“Many organizations function as accelerator programs and can raise money through direct investment or charitable contributions.
On a more intimate scale, you can invest in the companies run by your female friends.
If your friend is venturing into business ownership, you can encourage her. Women are more rooted in their communities, therefore I put my faith in them and their tribe,” Yazhari added. “That expenditure will be useful as well.”
Invest in Companies That Are Run by Women!
Each of us has access to retirement funds through a traditional plan or a brokerage service like Robinhood. I think the first thing to do is to ask questions,” Yazhari remarked. “Inquire, ‘How many of my portfolio’s funds are managed by women?’
You’ve asked a very potent question there. By raising this issue, we stimulate interest. If you ask and are told, “I don’t know” or “I can’t give you that answer,” it’s probably time to look elsewhere.
She went on to say that once you found out the response to that question, you would be able to decide in what way you wished to proceed. To what extent are you interested in expanding your current holdings to include gender-specific investment vehicles? What if you found a better 401(k) or IRA provider?
Use the Services of a Female Financial Consultant!
We need to address these views if we want to level the playing field, as Yazhari points out, because even women may have biases towards working with other women as financial or investing counselors.
They can “connect with a female for all parts of your finances,” she said. Take a more aggressive approach to pursue these connections. While white males make up the majority of financial advisors in the United States, this is by no means a requirement.
Do Your Banking With a Company That Helps Women Out!
“Pay attention to where your bank is lending out your money,” Yazhari advised. You can open a savings account at the excellent new Chicago bank named First Women’s Bank and leave your cash there safely.
It’s a safe place to put your money since it’s insured by the Federal Deposit Insurance Corporation, and the bank will lend it out to other women who need financial assistance.