Saturday, October 17, 2015

2 Different paths; which one to take?

Thanks for all the comments ladies and gents!

I am finding that there are two distinct flavours readers prefer.

The first has to do with discussing our values and dreams and then applying concrete exercises like making your own balance sheet and income statement to help realize those values and dreams. Where are we now and where do we want to be. By analyzing these financial statements to see where the money is going, we can now re-route and deploy the funds more effectively as well as pump up the revenues (via increased value proposition) and decrease the expenses (discuss necessities vs. luxuries).

Next comes creating a budget and strategizing ways to stay within it.  As women, we think about things differently. There are things we are good at so let’s take those skillsets and apply them to the world of investments. In fact, studies are showing that women actually make better investors (see Globe and Mail article from October 16, 2015, ‘Men are from Mars, women make better investors) because of our natural tendency to be modest, keep things simple and being very analytical and reflective.

The second path readers discussed was increasing our financial literacy. In other words, women want to know how to become more financially savvy. If we open the pages of the financial newspaper, what does all of it mean? Everything from definitions of ETF’s and dividends to RRSPs, RESP’s and TFSAs. Of course, fees would have to go in this section as well. And let’s not forget taxes! Ugh. I’ll admit it. Even I don’t like to talk about that…but I must I suppose.

One really great suggestion was to discuss how capital markets serve society and the factors that go into play that we should we aware of when wanting to be more active with our portfolio. This, along with the application of financial jargon to everyday analogies, should round out part 2.


The question now is, which fork in the road do I start with? The first suggestion of more broad-based values/dreams and concrete strategies or the second suggestion of understanding the markets better so there are more tools in the financial toolkit?

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