Who are your financial planning role models? Do you only look to experts who have media platforms? Or do you look to people you know personally to see how they manage their money and investments?
NBC News offers “Smart financial planning strategies to borrow from women and millennials” and whether you belong to these groups or not, you can always pick up some good financial planning habits from others.
In fact, that is one of the strategies mentioned—join a group: “Social media and other online communities have led to a proliferation of virtual and real-world spaces where people can support each other’s financial struggles, decisions and successes.”
Joining groups isn’t a new thing; women have had investment clubs in decades past. However, using the internet does mean that you can communicate with a cross-section of people that you wouldn’t otherwise meet locally.
Whether you view it as a strength or a backhanded compliment, this article reiterates the idea that women and millennials are among those groups of people who are not “overconfident.” This means that they tend to be less likely to take unnecessary risks with their money and err on the conservative side when it comes to saving.
This tendency to not be overconfident pairs well with another strategy mentioned—the tendency to ask a lot of questions. Rather than pushing ahead confidently (but perhaps blindly), women and millennials are more likely to do some research to ensure their investment decisions are sound.
And as the article articulates, that research does not usually involve hot tips gleaned at cocktail parties or changing investment strategy based on what worked for a friend because women and millennials do not necessarily feel the need to keep up with others: “Instead, they ask questions that pertain to them, and they spend more time making sure their investments are set up to meet their goals, rather than trying to beat the market. This is generally a wise strategy.”