Shifting to a Wealth-Growing Mindset

Just having life goals isn’t enough to achieve them
94% of women have personal goals that require money, but only 28% of women say growing their wealth is an important priority. Plus, only 32% of women who invest say they started doing so because they realized investing was a smart way to reach their goals. Not all women are making the connection between aiming for a long-term goal and investing in order to build the wealth to achieve that goal. Rather than life events by themselves prompting women to develop an interest in investing, it’s the basic prioritization of growing wealth as a way to accomplish goals that drives engagement with investing. In turn, engagement with investing plan for the long term ultimately helps women achieve their money-related goals, such as saving for a down payment on a home or supporting their elderly relatives.
  • Prioritizing growing one’s wealth
  • Thinking long term
  • Thinking about money
  • Is money all that matters?

Prioritizing growing one’s wealth

The value of prioritizing growing one’s wealth

Women who prioritize growing wealth are more likely to exhibit successful financial planning behaviors, such as having investments and regularly saving for the long term. Moreover, among women who have investments, those who aim to grow their wealth are more likely to have started investing because they made the connection between investing and reaching personal life goals.

    Women who do not prioritize growing wealth

  • 38% Have investments
  • 26% Started investing because I realized investing was a smart way to reach my goals
  • 16% Regularly put aside money for savings/investments
  • Women who prioritize growing wealth

  • 63% Have investments
  • 40% Started investing because I realized investing was a smart way to reach my goals
  • 34% Regularly put aside money for savings/investments

Thinking long term

What defines women who want to grow their wealth?

An important characteristic that defines women who prioritize growing wealth is they think toward the long term. Women who prioritize growing wealth are more likely to define saving money as well as investing money as putting it towards a long-term goal.

    Women who do not prioritize growing wealth

  • 56% Focused on the long term rather than short term
  • 43% Describe saving money as putting it towards a long-term goal
  • 24% Describe investing money as putting it towards a long-term goal
  • Women who prioritize growing wealth

  • 74% Focused on the long term rather than short term
  • 67% Describe saving money as putting it towards a long-term goal
  • 33% Describe investing money as putting it towards a long-term goal

Thinking about money

How do women who prioritize growing wealth think about money?

Women who aim to grow their wealth are more likely to use a number of positive attributes to describe money, and they are substantially more likely to associate money with the idea of freedom.

    Financial priorities for women who do not prioritize growing wealth

  • 19% Success
  • 39% Responsibility
  • 36% Freedom
  • Financial priorities for women who do prioritize growing wealth

  • 40% Success
  • 47% Responsibility
  • 60% Freedom

Is money all that matters?

Is money all that matters to wealth-growing women?

While individual life events do not necessarily predispose a woman to better investing behaviors, women who prioritize growing wealth tend to have more complex financial priorities overall, which helps drive their plan to grow wealth.

    Financial priorities for women who do not prioritize growing wealth

  • 5% Starting or growing my own business
  • 17% Financing my child/children’s education
  • 6% Providing financial support to elderly relatives
  • Financial priorities for women who do prioritize growing wealth

  • 16% Starting or growing my own business
  • 27% Financing my child/children’s education
  • 12% Providing financial support to elderly relatives

Growing wealth and growing up with saving, investing and education

While it’s never too late to learn good financial habits, women who prioritize growing wealth tended to have the advantage of being raised to value investing, long-term thinking and education. In turn, education is an important factor in women’s attitudes towards investing and financial planning.

A wealth-growing mindset

The good news is that women are an emerging economic powerhouse with huge amounts of wealth coming their way. The not so good news is that many women display a reluctance to build wealth. Almost all women have some goals that are related to money, and they can reach their goals with greater success if they develop the right outlook: an outlook that values growing wealth and thinking long term.

Taking Action

It’s crucial for women to understand how to grow their wealth to reach long-term financial goals, particularly a secure retirement.

01.
Get Insights

Is your current investment portfolio built for 2016 and beyond? Look to BlackRock to provide you with investment insights and perspective, along with investment solutions to help you navigate the journey ahead.

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02.
Seek Advice

Ask for advice on investing. One of the key benefits of working with a financial professional is that he or she will partner with you to identify your individual financial goals, as well as your investment time horizon and tolerance for investment risk.

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03.
Grow Your Wealth

The world is changing – and becoming more challenging for growth investors. It’s time to employ new strategies to manage volatility and capture growth. As you think about your engagement with investing, consider both active managers and ETFs.

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