Let’s Talk Money: 4 Steps to Financial Freedom

Thomas Gassenbauer, Country Manager for Cognizant in Switzerland, welcomed an audience of women on the 18th floor of Prime Tower in Zurich, highlighting the company’s commitment to empowering its talented female workforce. He introduced Cristina Jaeger, the founder of the herFinancialFreedom platform, who delivered insights on taking control of one’s financial future.

With over 13 years of experience in wealth management across Europe and Asia, Jaeger is dedicated to closing the gender wealth gap by enhancing financial literacy among women. Her work at UBS, Switzerland’s largest wealth managers, equipped her with valuable expertise, which she now channels into her mission to empower women in their financial journeys.

Let’s Talk Money: The Financial Knowledge Gap

Studies indicate that women often perceive themselves as having less financial acumen compared to men, particularly when „I don’t know“ is an answer option on financial questionnaires. When this option is removed, the disparity shrinks to a mere 1%. Furthermore, an alarming 78% of marketing messages directed at women focus on consumerism rather than financial empowerment. Jaeger pointed out that while women are adept at discussing spending habits, they must cultivate a stronger capability for wealth accumulation and investment.

Four Steps to Financial Freedom

1. Understand Your Financial Position: Women are encouraged to act as their own CFOs, which involves aligning their personal investor profiles with suitable asset classes. Knowing one’s financial landscape is crucial to initiating any investment journey.

2. Goal Setting: Establishing clear financial goals is essential for success. An effective exercise is to examine monthly credit card statements to reveal spending patterns, helping individuals prioritize what matters most to them. This step is beneficial even for those who believe they manage their budgets well.

3. Investment Choices: It’s important for individuals to comprehend how their risk tolerance aligns with various asset classes. In Switzerland, only 30% of households engage in stock market investments, with many preferring to keep funds in perceived safe havens like savings accounts. However, this mindset can be misleading, as inflation poses a significant risk to capital preservation.

4. Managing Investments: Individuals have two primary options for managing their money: either take complete control of investment decisions or delegate to financial professionals for a fee. Jäger advised potential investors to thoroughly compare factors such as trading fees, account features, and available support when choosing a Swiss online broker. It’s also beneficial to adopt different strategies for various segments of the portfolio based on individual goals and timelines.

Jaeger emphasized the importance of diversification, suggesting that people consider a mix of investments tailored to their risk appetite and return expectations. For instance, bonds can serve as a stabilizing force in a portfolio, particularly for those with a medium- to long-term investment horizon.

Final Thoughts

Cristina Jaeger’s closing advice was to stay informed and engaged with financial conversations. “Be part of the dialogue and don’t hesitate to seek assistance when needed,” she urged. Empowering women through financial knowledge is crucial not only for bridging wealth gaps but also for fostering greater independence and confidence in managing their finances. By taking proactive steps toward financial awareness and investment, women can cultivate the financial freedom necessary to secure their futures.

BK

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