The financial superpowers women have that make them great wealth builders

In our last article, we discussed the disadvantages women face when building a retirement fund. Despite these obstacles, we laid out clear, actionable steps to take control of your financial future. (Click here to read.) 

Here’s good news. We actually have “natural superpowers” that can set us up for long-term financial success. While society often describes the financial sector as a “man’s world,” studies show that women tend to make smarter, steadier financial decisions. Let’s dive into these financial superpowers and use them to our advantage in order to build wealth.

1. The power to save more

On average, women save a higher percentage of their income than men. This puts them at an advantage in observing the first basic law of money, “Pay yourself first,” without which, no investing can be consistently done. 

2. The power of patience and long-term view.

Women tend to adopt a more patient and holistic approach to investing. They are less likely to choose short-term gains and prioritize sustainable growth and focus on building a stable financial future. They are more inclined to stick to a budget, consistently contribute to retirement accounts, avoid impulsive financial decisions, allowing them to weather market fluctuations and reap the rewards of compounding over time.

3. The power of intuitive risk management

The so-called women’s intuition exists because intuition operates through the right side of our brain, the hippocampus, and through our gut. Women’s corpus collosum, the connective white matter that connects our left and right brain hemispheres, is thicker than men’s. This allows women better and faster abilities to access each hemisphere of the brain and integrate the gut feelings, making it easier for them to optimize rapid intuitive decision-making. When applied to our finances, this gives us an advantage to make better decisions in wealth building.

4. The power of being risk-aware

We often generalize women as being too risk-averse. But we may be confusing it with being risk-aware. The women’s intuition discussed above gives us this nuanced understanding of risk management—that investing needs thorough research and careful consideration, seeking advice from experts before taking action. (To know more about this, watch my short video on Risk-averse vs. Risk-aware).

5. The power of collaboration and community building 

Women excel in building strong networks and collaborative relationships. When used in their financial decision-making, they are able to engage in discussions with peers and experts, share information and knowledge, leverage the collective wisdom of their networks, and ultimately gather valuable insights to make sound financial decisions to build wealth.

6. The power of empathy and goals-based approach

Women often approach wealth building with a strong sense of purpose. They are driven by goals that extend beyond personal financial gain, such as securing their family’s future, children’s education, and supporting charitable causes. As we discuss in the "FQ Trilogy," values-based goal setting does wonders in achieving financial goals. It is because all these talk and work about money now have a spirit, a soul, a clear purpose. It propels them to do the heavy work, sometimes the impossible, and stay the course in times of difficulties because they know that they are doing it for a purpose bigger and greater than themselves.

7. The power to master budgeting and resource management

Women are adept at stretching their resources, finding creative solutions, and prioritizing essential expenses. They are more likely to track their spending, identify areas of saving, and negotiate favorable deals. This resourcefulness allows them to maximize their income and build wealth even with limited resources.

8. The power of EQ in financial decisions

Due to women’s ability to express and process emotions better than men, they often have higher EQ (Emotional Intelligence Quotient), a trait very important in wealth building and overall financial success. They are less likely to be swayed by impulsive decisions driven by fear or too much machismo. Women’s ability to better manage emotional responses allows them to make more rational financial decisions.

9. The power of good credit

Women are better credit than men. According to Katherine Etsy, the author of Twenty-seven Dollars and a Dream (How Muhammad Yunus Changed the World and What It Cost Him), women borrowers at Grameen Bank have repayment rates of 97% compared to only 70% among men. This difference in loan repayment rates in favor of women is also observed in several other studies. Being a good credit can open doors to women taking up loans for their projects that can help them in wealth building.

10. The power of resilience 

Women are equipped to find ways when the going gets tough. They find creative ways to stretch whatever is left, adjust spending habits, navigate financial challenges, and adapt to changing circumstances. They also excel at side hustles, freelancing, and entrepreneurship, allowing them to pivot and create new income streams to continue wealth building. 

The above are just nine of the financial superpowers that women possess that make them great wealth builders. I’m sure you have other superpowers in mind. I’d love to hear from you. 

Remember ladies, you already possess what it takes to be a great wealth builder. Now, use these superpowers and build wealth intentionally. And I’m sure that if you do, the benefits will not just go to you but to your family and the whole society. Happy wealth building!

ANNOUNCEMENTS

1. Watch out for my next YouTube video with the amazing Bianca Gonzalez as we dive into finances, parenting, and empowering women. 

2. Do you know where you are now in your FQ Journey? Take the FQ Test, click here. 

3. Get your copy of the FQ books to start your FQ Journey now. Click here.

This article is also published in FQMom.com