Smart Investing Tips for Women Who Want to Build Wealth

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INTRODUCTION

Do you want to start investing but don't know where to start? Investing can feel overwhelming, but it doesn’t have to be! By following a few key principles, you can set yourself up for financial success while making your money work for you. Investing helped me grow wealth while planning a wedding. Whether you're just getting started, planning a wedding, or looking to improve your investing strategy, here are 25 smart investing tips to help you start investing and build wealth.

1. CREATE YOUR VISION FOR THE NEXT 10 TO 25 YEARS

A strong vision for your future in the next 10 to 25 years helps shape your investing strategy and financial plans. This vision gives you a powerful “why” for investing and can be motivating. For example, if your goal is to retire in 25 years, describe where you are, what you are doing, who you are with, and where you live. Whether it's retiring comfortably, buying a home, or achieving financial independence, deciding on your big goals focuses on your investing aims. This vision can help you determine how much money you need to invest to achieve this dream.

2. FIGURE OUT YOUR FINANCIAL INDEPENDENCE NUMBER

Your financial independence (FI) number is how much you need to save and invest to retire comfortably. You can estimate this using the 4% rule—if you need $50,000 annually in retirement, you’ll need $1.25 million saved. Another way to calculate this is to determine the income you need to retire (like $50,000 per year), then multiply this by 25 years ($50,000 x 25= $1,250,000). While your expenses may change over time, working toward your FI number now will bring you closer to financial freedom. This number acts as a goalpost for your investing strategy.

Ready to calculate your FI number? Here are some early retirement calculators to help you get started. You can play with a couple of calculators and estimates to get a good idea of what FI number you want to aim for in your desired timeline.

3. LIVE BELOW YOUR MEANS AND HAVE A FINANCIAL PLAN

Building wealth starts with managing your money wisely. Living below your means allows you to save and invest more while reducing financial stress. For example, you can free up $500 monthly by cutting unnecessary expenses like Amazon shopping, eating out, or traveling. Before investing, you want to create a strong financial foundation by creating a budget, paying off high-interest debt, and establishing an emergency fund. For more ways to strengthen your finances, check out these helpful blog posts:

4. INVEST BASED ON FUNDAMENTAL PRINCIPLES, NOT FADS

While it is tempting to pick the following best stock, chase the latest hot stock pick, or buy the newest bitcoin, these trends can be risky. Instead, stick to proven fundamental investing principles that have made people wealthy and stood the test of time. Yes, it will take time, but it is more reliable. For instance, Warren Buffett, one of the most successful investors, advises buying and holding index funds for long-term wealth instead of chasing short-term trends. Why? People who spend a lifetime trading stocks don't beat the indexes consistently. Here are some helpful money principles to get you started:

Do your research and understand the risk of your investments
Only invest in things you understand
Invest for the long-term
Invest early (or start now)
Make investing a habit
Diversify your investments
Don’t invest money you can’t afford to lose
Keep learning about investing

5. KEEP LEARNING ABOUT INVESTING

Speaking of investing principles, keep learning about investing because knowledge is empowering! Read about different investing options or listen to audiobooks (not just listening to your coworkers or influencers). Books often highlight investment principles that have made people wealthy and provide an excellent foundation for organizing your finances. I love Audible because it lets me listen to books and learn about investing in my commute or workouts. Some great titles include:

The Simple Path to Wealth by JL Collins
The Psychology of Money by Morgan Housel
The Richest Man in Babylon by George Clason
Random Walk Down Wall Street by Burton Malkiel
Millionaire Next Door by Dr. Thomas Stanley
Millionaire Real Estate Investor by Gary Keller
The Little Book of Common Sense Investing by John Bogle

6. GET YOUR MATCH WITH YOUR EMPLOYER

Start investing in things that are available to you. If your employer offers a 401(k) match, take full advantage of this opportunity! Employer match is like free money that can supercharge your retirement savings. For example, if your employer matches 100% of your contributions up to 5% of your salary and earns $60,000 annually, contributing $3,000 means your employer will also add $3,000—giving you an immediate 100% return on that investment. Usually, this contribution will come from your paycheck before you get paid, so you likely won't notice the money is gone over time. At a minimum, contribute enough to get the full match—it’s one of the easiest ways to grow your investments.

7. INVEST FOR RETIREMENT WITH AN IRA

An Individual Retirement Account (IRA) is a powerful tool for long-term investing and tax savings. Even if you don't have a retirement plan with your employer, you can open an IRA. A Roth IRA lets you invest after-tax dollars, meaning your retirement withdrawals are tax-free. For example, if you contribute $6,500 per year to a Roth IRA starting at age 30, with an average 8% return, you could have over $700,000 by retirement—all tax-free!

On the other hand, a Traditional IRA allows you to invest pre-tax dollars, reducing your taxable income now while your money grows tax-deferred until retirement. If you exceed the income limits for the Roth IRA, you can use a Traditional IRA to do a back-door Roth IRA. Depending on your situation, there are reasons to do a Traditional IRA over a Roth IRA, so research or talk with a finance professional if you have questions about which is best for you.

8. START INVESTING NOW

A famous Chinese proverb says, “The best time to plant a tree was 20 years ago; the second best time is now.” This proverb can be applied to investing. If you haven't started, now is the best time to begin. Whether contributing to your employer’s 401(k), opening an IRA, or using an investing app like Acorns, getting started early gives your money more time to grow. Choose low-cost, low-fee brokerages like Fidelity, Charles Schwab, or Vanguard to minimize fees and keep more of your returns.

Small contributions, like $50 per month, can significantly increase over time. Why? Because compound interest will help your money grow like a small snowball on a huge hill. Compound interest will make the money “snowball” get bigger and bigger over time. The sooner you start, the more your invested money will grow.

9. CHOOSE LOW-COST, LOW-FEE INVESTMENTS

When you start investing, avoid tools or strategies with high costs and fees because these costs eat into your wealth. Index funds and ETFs (exchange-traded funds) are excellent for beginners and seasoned investors. They offer diversification, low fees, and steady long-term growth without constant monitoring. For instance, the S&P 500 index fund tracks 500 of the largest U.S. companies, providing instant diversification and historically strong returns. ETFs are similar to index funds; you can only trade them throughout the day at low costs. You can start with one broad index or ETF, like a Total Stock Market fund or S&P 500 fund, to get exposure to several companies simultaneously.

10. DON'T LET TAXES AND EXPENSES ERODE YOUR WEALTH

When building wealth, you must watch out for hidden costs like taxes and advisor expenses that can erode your returns over time. For example, a financial advisor charging a 1% fee on a $1 million portfolio would take $10,000 annually, which could add up over time. Additionally, frequent trading or selling within your portfolio can trigger higher transaction fees and taxes, further diminishing your wealth. You can preserve more of your wealth by keeping these costs low—whether through a low-cost advisor, tax-efficient strategies, or minimizing trades.

11. INCREASE YOUR INVESTMENTS BY AT LEAST 1% OF YOUR INCOME PER YEAR

A simple way to grow your wealth without feeling the pinch is to increase your investment contributions by just 1% of your income each year. For instance, if you currently invest 5% of your salary, increase it to 6% next year, then 7% the following year. Over time, this minor adjustment can significantly boost your retirement savings without drastically changing your budget.

12. UNDERSTAND THE RISKS OF INVESTING AND STAY CALM WHEN THE MARKET DROPS

Say you've researched investing and feel you understand the risks. How will you prepare for risk when things don't go well? One reality you must prepare for when investing is this: the market goes down and sometimes crashes. When the stock market crashes, it’s tempting to panic and sell. However, Warren Buffett, the legendary investor, reminds us to “be greedy when others are fearful and fearful when others are greedy,” suggesting that you should buy investments when people are afraid that the market is dropping. Why? If you're investing in quality companies using solid principles, market crashes or recessions are opportunities to buy stocks at a discount. It's like a massive sale, and you want to take advantage of it.

History shows that markets recover, and those who invest during crashes or recessions often build significant wealth when the market rebounds. So, buying when the market goes down or crashes means you make more money when it rebounds later. When I started my Roth IRA in 2008, it felt discouraging to see that the amount was not increasing and was going down. My father encouraged me to keep up with the plan despite the significant recession in 2008. What happened? The money I was putting in bought more shares because of the crash. When it started to recover, my Roth IRA felt like it was skyrocketing.

Selling in a downturn locks in what you lose, but staying invested or buying more positions you for long-term gains and wealth.

13. HAVE A RAINY DAY OPPORTUNITY FUND FOR INVESTING

Want to prepare for the inevitable market downturn or market crash? Have a “rainy day opportunity fund” for investing. A “rainy day opportunity fund” allows you to buy more of your favorite stocks during market downturns. Instead of watching others panic and sell in fear when the market crashes, you can use your set-aside cash to buy quality investments at a discount.

Imagine you are saving for your favorite designer handbag. Then, suddenly, it goes on clearance. Would you take your savings and buy it on sale? I would! Likewise, if you have some money in your rainy day opportunity fund for investing, when the market crashes, you can buy more shares “on sale.”

Most brokerages have a money market account with a higher interest rate than typical bank accounts. These money markets make significant “rainy day opportunity funds,” so you can quickly buy more for your investment portfolio when the market crashes. Even investing $100/mo into this account can grow over time. And when the market crash happens, you'll be prepared for it!

14. HAVE MONEY MENTORS

Learn from those who have successfully built wealth. Whether it's a financial advisor, an experienced friend, or a mastermind group, having money mentors can help you stay on track and avoid costly mistakes. For example, joining a women’s investing group can provide support, knowledge, and accountability as you grow your portfolio. You can even listen to podcasts to learn more about money and use them as your money mentors. Here are some podcasts that I enjoy to get you started:

Afford Anything by Paula Pant
Her Money by Jean Chatzky (she also hosts a program called InvestingFixx for women to learn about investing)
Money Guys by Brian Preston and Bo Hanson
Money for Couples by Ramit Sethi
On the Market by Dave Meyer (focuses on real estate investing)

15. DIVERSIFY IN THINGS YOU UNDERSTAND

Even though diversifying your investments is essential to spread out your risks of losing everything, don't diversify in investments you don't understand. Use solid investment principles to pick investments without the “fear of missing out.” For example, if you’re interested in real estate, research and understand the risks (as well as the bad stuff that can happen) before you start. Don't jump on any investing “next best thing” if you can't explain it to your family or friends.

16. AUTOMATE YOUR INVESTMENTS AND MAKE INVESTING A HABIT

Set up automatic contributions to your investment accounts and make investing a habit. Automating your finances removes the temptation to spend extra cash and ensures you're consistently investing without thinking about it. For example, if you transfer $200 per month into an investment account over 10 years at an 8% annual return, you could grow your savings to over $36,000. Make your money work for you on autopilot with this powerful tool.

17. CHECK YOUR INVESTMENTS REGULARLY

Check your investments at least annually to review and rebalance them. This review also ensures your portfolio stays diversified for your goals. This way, if one market area takes a hit, your entire portfolio won’t suffer.

Also, make sure your money is getting invested. Sometimes, you may think you're investing, but your money is sitting in a cash account at your brokerage, earning little to nothing because you didn't take the necessary steps to invest it. Similarly, transferring a 401(k) from a previous job and not investing it means that money is sitting idle and not working for you.

18. TALK TO YOUR PARTNER ABOUT INVESTING

Talking to your partner about investing is essential to building a strong financial foundation. Schedule regular money dates to make sure both of you are aligned with your goals and making progress. Use these discussions to discuss your investments openly, share ideas, and decide together if changes are needed. My husband and I had several money dates, discussing our investing goals before we started investing together. However, we did it as a team, and it felt amazing to do it together.

Making financial decisions as a team strengthens your communication and understanding of money. This shared approach helps build trust and ensures you work toward a strong financial future. Want some help to get started? Here are some helpful blog posts to review your money throughout the year:

19. FOCUS ON THINGS THAT MAKE MONEY WHILE YOU SLEEP

Making money while you sleep is one of the most powerful ways to achieve financial freedom over time. Investing in assets that generate passive income, such as index funds, ETFs, real estate investment trusts (REITs), royalties, app creation, or online courses, allows your money to grow even when you’re not actively working. Work hard for your money, but make your money work harder than you to build lasting wealth.

20. YOUR INVESTMENT PORTFOLIO IS NOT YOUR EMERGENCY FUND

Don't invest money that you can't afford to lose. Your investments should never be confused with your emergency fund, savings account, or piggy bank. Avoid investing money you'll need in the next 5 years. If you need the cash in 5 years and invest it, it might not be available if the market is downturned. Similarly, avoid taking loans against your investments like a 401(k) loan—this complicates your finances and can increase your taxes and fees, leaving less for your future self.

When you invest, aim for the long term—at least 10 years—where you can let your money grow without needing to touch it. Save up for an emergency fund. Plan out saving goals for a new car, vacations, and your wedding with dedicated savings accounts. Stay focused on your purpose and goals for investing, and make sure your investment strategy aligns with those long-term objectives rather than short-term wants or needs.

21. HAVE A PLAN FOR WHEN TO SELL INVESTMENTS

While your investments are not your emergency fund, you do need to have a plan for when to sell them. Knowing when to sell your investments is as important as deciding when to buy. Selling should be based on principles and planning, not emotions. Maybe you’ve reached your financial independence number and are ready to start withdrawing, or you’re retired and need to sell some investments for tax benefits. Or, perhaps it’s time to rebalance your portfolio. Don’t be afraid to adjust your strategy and let investments go, but always make those decisions with a well-thought-out plan.

22. CHECK YOUR NET WORTH REGULARLY

Tracking your net worth at least once a year helps you see your financial progress. To make it easy on yourself, use budget apps like Simplifi to monitor your savings, investments, and spending habits in one place. These apps can help you track how much you invest each month, how your assets are growing, and whether you need to adjust your budget.

23. CELEBRATE LITTLE VICTORIES

Celebrating successes along your investment journey is essential for staying motivated and acknowledging your progress. For example, celebrating achievements like sticking to a budget that allows you to invest regularly can be a powerful reminder of how far you’ve come. Take the time to rejoice when you hit milestones, like reaching $100,000 in net worth or successfully automating your investments for an entire year. Feeling proud about your progress helps keep you focused on your financial goals and reinforces positive habits.

24. EAT WELL VS SLEEP WELL

Investing is a balance between making more money (“eating well”) and having peace of mind (“sleeping well”). If an investment causes stress or makes you lose sleep, it may not be worth making the extra money. True success is feeling secure in your decisions while your money grows.

25. WEALTH IS NOT A NUMBER

This tip has more to do with the mindset of investing, but it is essential. While investing and building wealth, it is very easy to start comparing yourself to other people. Many people chase a specific number, thinking it will make them feel wealthy, only to realize it’s never enough even when they reach that number. Figure out what “enough” means for you. Rich people can have a “scarcity mindset,” too, and you don't want to live your life chasing a money number that will never make you happy.

There are several types of wealth besides financial prosperity. True wealth defines what matters to you—good health, family time, or enjoying your work. The book The 5 Types of Wealth by Sahil Bloom illustrates how you can focus on areas like finances, time, and your social life to build a life you love. Investing is a tool to help you reach your financial goals, but the key to true wealth is to find what matters to you in life and let money be a tool to help support you.

CONCLUSION

I hope you enjoyed these 25 investing tips. Investing doesn’t have to be complicated. You can start investing and building wealth in a few steps and remembering helpful tips. By following these smart investing tips, you’ll be well on your way to building wealth and securing your financial future. Start today, stay consistent, and watch your money grow!

IN SUMMARY

25 Smart Investing Tips for Women Who Want to Build Wealth

Have long-term goals for the next 10 to 25 years.
Figure out your FI number.
Live below your means and have a financial plan.
Invest based on principles, not fads.
Learn more about investing in audiobooks.
Get your match with your employer.
Start investing for retirement with an IRA to save on taxes.
Start investing now.
Choose low-cost broad investments (index funds and ETFs).
Don't let fees and taxes erode your wealth.
Increase your investments by 1% of your income per year.
Stay calm and invest when the market drops.
Have a rainy day opportunity fund to prepare for market downturns and crashes.
Have money mentors.
Diversify in things you understand.
Automate your investments.
Focus on things that make money while you sleep.
Check on your investments regularly.
Talk to your partner about investing.
Don't treat your investments as your emergency fund.
Have a plan for when to sell your investments.
Check your net worth regularly.
Celebrate little victories on your financial journey.
Pick an investing plan that lets you sleep well at night.
Wealth is not a number.

How are you going to use these money tips to start investing today?