The absolute Girl Boss that is Dragon’s Den entrepreneur Deborah Meaden popped into the Second Act podcast studio this week and delivered some golden back-to-school tips about how we should be handling our finances in midlife.
What was comforting to hear is that if you’re feeling at the bottom of the class when it comes to financial education, you are very much not alone. It was only just over 50 years ago that women were not even allowed to open their own bank account for goodness sake, so it’s no wonder our mothers didn’t have much of a clue how to educate us in that way. For them it was always down to the man to sort out – they didn’t have a choice.
But for our generation, things are different. We need to wise up and take control of our own finances because you never know what is around the corner.
“It’s been hundreds of years that men have taken care of finances. Women are notoriously bad at investing because that was always left up to their partners,” says Deborah, 67.
“And then suddenly, either through divorce or loss, they’re faced with cash and not sure what to do with it.
“I think it’s so important that women take control of their finances because it spreads across their whole lives. It isn’t just about how do I invest? It’s about taking control.”
The biggest barrier for women organising their finances and launching their own businesses can often be themselves.
© BBC Studios/Simon PantlingIn her work with Dragon’s Den and Female Invest, Deborah has noticed that a lack of knowledge and confidence are huge factors in holding us back compared to our male counterparts.
Here are the top tips she gave Ateh on the pod to tackle your finances and take back control.
Educate Yourself
When the entrepreneur wrote a finance book for teenagers called Deborah Meaden Talks Money, she didn’t anticipate how popular it would be with women in midlife.
But educating yourself on the basics is just common sense and helps you ask the right questions to give you back financial power.
“When you get to a certain age, I think people can find it more difficult to say I don’t really understand how compound interest works, and you feel ashamed to admit it.
“Often you can also think you don’t know as much as you do know. So there’s a reassurance in the book that, oh, I do understand that.
“The book just deals with it and it doesn’t answer all the questions, but it says this is what you need to know and what questions you need to ask.”
Find Your Confidence
“Weirdly, I was actually not very good at maths,” says Deborah. “But I was very interested in what numbers can tell me. What’s this pattern going on in here? You should be confident enough to ask the questions.”
If you are lacking confidence to start a business in particular when you are older, she says it’s often because you are not sure of the barriers – and are playing it safe.
“As you get older, you’re probably in a much better position. You’ve got more contacts, you’ve got way more experience in life. You’ll probably be more financially secure.
“That’s good and that’s bad. When I was 16, I started my first business, I didn’t have anything to lose. When you’ve got responsibility you probably have more financial stability, but you also recognise that you have other responsibilities.
“I think that can sometimes be the thing that holds people back. But what if? And that’s a harder one to overcome. You have to think long and hard, not just should I start my own business? Is this the moment to start my own business? Because sometimes it’s just about timing.
“If you are worried, find a partner. Share it with somebody. You might have the idea, you might have a patent, you might find somebody who’s maybe got the cash and you can share the responsibilities. It takes time. But it can be that simple.”
© Getty ImagesForget your mistakes
Every single one of us makes a mistake at some point in our lives. But it is how we pick ourselves up afterwards that matters.
“I meet people and they walk around with all of the mistakes they’ve ever made in their life, and they’re carrying them in this big sack on their back.
“And of course, they’re feeling down and lacking energy and overburdened. Get rid of it.
I have made thousands of mistakes, and I promise you, I’m going to make more. I absolutely guarantee that what I don’t do is carry them around with me and let them let them form the you that’s not true.
“They help me form the future. I don’t like the feeling, but I think about them and I think what I’m going to do next time this happens? What’s going to change. And then they’re gone. And when people ask me for the biggest mistake I’ve ever made, I genuinely can’t remember.”
© AlamyYou Can Start Investing with £10
It might sound terrifying, but starting to invest can be as easy as downloading a banking app to your phone. There are a plethora of apps and platforms out there on the internet, just make sure you choose an established one or one vetted by the experts. Female Invest who Deborah works with offers workshops targeting specifically to women for this.
And the best part you don’t need to be earning the big bucks to start, just swap your weekly caffeine addiction to putting the cash into watching your funds stack up instead.
“I would always say if you’re starting, it can be fun to try little and often until you get a feeling for what you’re enjoying. You might not even like it, but you can invest 10 pounds a week or 10 pounds a month if you like.
“The first thing I say to people is if you have just got your money sitting at a bank, inflation particularly at the moment is outstripping the interest you’re getting. So you’re losing money – you’re deciding to allow your money to lose its value.
“So think about investing before you do anything.” This can be done by investing in Stocks and Share’s Isa’s that are pre-packaged by the bank, or Deborah suggests adding a bit more fun into it and taking matters into your own hands.
“Think of something you’re really interested in and try to understand that market. So if you’re interested in beauty, find something on the stock market that you’re interested in and understand how that all works.
“Understand why the prices have gone up in one day. Because if it’s something you like anyway, you’re going to be interested in it and you’re going to start feeling what a market does.
“Just just give it a go. Because it’s amazing. I remember the first time I invested, I was about 16 and I’d invested in a company simply because I like the name. That’s not a great reason to invest, but I actually did make money as the shares went up about two weeks later and I got something like a 20% return. Now I’m really interested.
“Just find that thing that will interest you, because if you’re interested, then you’ll stick with it.”
So take this as your sign to get investing today – it might just change your life.
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