Today’s blog is a little bit different than usual. We’re going to be taking just a quick look at how women differ from them when it comes to creating wealth, based on recent research. It might not help you in your financial affairs, but it’s quite interesting.
The Forbes list of billionaires has 1645 people, 172 of whom are women. Of that 172, 32 of the women are “self-made” and the rest made their money either from marriage or an inheritance.
This begs a number of questions, including how come there aren’t more women billionaires, given that women have made such great strides overall in the rest of the economy? Also, is there a difference in how men and women create wealth?
A recent study from Spectrem Group asked millionaires, both men and women, about the factors that led to their extreme wealth and the results suggest that, when it comes to creating that wealth, the perspective that women have, as well as their experience, is quite different.
For example, when it comes to building wealth, most women will cite family connections and astute financial advice, as well as frugality. On the other hand men talk more about running their own businesses, taking risks and even a bit of luck.
When it comes to frugality for example, while just over 75% of men cited it as one of the reasons for their wealth, almost 85% of women did, nearly 10% more. Decisions made by financial advisors were cited 46% of the time as opposed to 34 by men, and 11% of women cited family connections as the source of their wealth as opposed to only 7% of men.
Interestingly, when it comes to the “luck factor”, over 40% of men said that it had a lot to do with their wealth whereas just over 30% of women claimed the same.
Spectrem Group, is a wealth building research firm, and their President George Walper says that, when it comes to wealth, women face much different obstacles then men, and many different factors
“Because of the unique financial challenges women face, such as salary inequality, that can impact retirement savings, they are more likely than men to credit frugality,” he said. “Men, on the other hand, are generally less risk-averse and more aggressive investors than women and more likely to pat themselves on the back for risk taking.”
Walper also added that, when it comes to taking credit for their wealth, many more women will give the credit to their financial advisor than men will. Most wealthy men tend to take credit for the investment decisions that they made themselves rather than give it to someone else.
It just goes to show that, when you finally become a wealthy person, make sure to thank the little people.