Yes, That Skirt Is Life-Changing. It's Not An Investment
Here’s the thing about “investment” as a term: it gets thrown around a lot. Take a glance at the torrent of email that brands are pumping into your inbox right now: According to them, your boots, your bag, or even your water bottle is an “investment piece.” (Guilty: We used to have a section in this very newsletter called “Investment Piece,” where we asked notable women about their high-end purchases.) Here’s the deal: Quality, long-lasting items absolutely matter. But framing everyday purchases as “investments,” especially when aimed at women, can subtly nudge earnings away from actual investments — like stocks, bonds, and other financial vehicles that build wealth and power.
As participants in the economy, let's not fall for this idea, especially since women have made so many gains as investors. According to Fidelity, 71% of us own stock but, due to a myriad of complex reasons including a gender pay gap, we still fall behind men when it comes to overall wealth.
There’s also a confidence issue: One report from JP Morgan found that while 76% of men feel confident in their investing knowledge, 55% of women feel the same. (This is despite some findings that funds with higher female representations are actually more successful than funds run by men.)
This investing-confidence gap reminds me of the way women approach the job market: there are stats saying that men will apply for a job for which they meet 60% of the criteria, while women won’t unless they tick every box. I think the way to build our investing confidence is to talk about our uncertainty and share knowledge and tactics. Let’s make it as natural to swap stock tips as it is to swap skincare strategies. Let’s talk crypto over coffee. And let’s be clear that when we talk investing, we’re talking about accruing cash — which we can then choose to spend on that three-figure espresso machine that promises to level up your life.
— Ask Me About My Crypto Account, Anna Davies, writer
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Use the letters below to identify the word or phrase. Then, click to reveal the answer.
Clue: Someone who buys a big chunk of a company’s stock to pressure management to change how the company is run. This person isn’t being altruistic, they’re being strategic — and the returns are the reward.
Q: We recently received an unexpected windfall. My partner is all in on the idea of investing in real estate — we already own our home, so they’re thinking about buying a condo to rent out. Meanwhile, I’m leaning toward the stock market, since real estate feels like a ton of work and comes with its fair share of risk. Who’s “right,” and how do we figure this out?
— Properties or Portfolios?
FEATURED EXPERT:
Aaliyah Kissick
Personal finance expert and founder of The Financial Literacy Diaries
On paper, the stock market is probably the best choice, for the exact reasons you list. But the real answer isn’t about who’s “right” — it’s about what’s right for both of you, says Aaliyah Kissick, personal finance expert and founder of The Financial Literacy Diaries. To learn more, she suggests answering these three questions.
1. What do the numbers say?
“My goal was to initially invest in real estate myself, but then I dug into the numbers as a solo entrepreneur, and found stocks were right for me, ” notes Kissick. What she found: Yes, real estate comes with potential upsides, like long-term appreciation and rental income, but the entry cost was steep — think down payments, mortgages, and ongoing maintenance. Stocks, on the other hand, tend to offer more liquidity and predictability over time. And here’s the kicker: If an emergency strikes, selling stocks is a whole lot faster than putting a property on the market. (Related: Has Real Estate or the Stock Market Performed Better?)
2. How much effort are you ready to put in?
Spoiler alert: Owning a rental property is not a “set it and forget it” investment. Tenants, repairs, and market fluctuations can turn what you took on as a side hustle into a full-time job. “If you don’t have the time or continuous cash flow to invest in a rental property, I’d recommend investing elsewhere,” says Kissick. And feel free to think outside the stock market: Real Estate Investment Trusts (REITs) are a relatively easy way to get into real estate without the hassle of becoming a landlord. (Related: What is ‘Sweat Equity’?)
3. How can we communicate more effectively?
This question is about more than your money, but it certainly impacts the financial decisions you make together. And sometimes, a pro can help be an impartial sounding board to weigh the pros and cons. “A financial counselor can help you align your priorities and create a strategy that feels good for both of you,” says Kissick. Because at the end of the day, the smartest investment is the one you’re both on board with. (Related: 4 Mistakes Couples Make When Discussing Money
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Fantasy Football For Your Finances
What it is: MarketSim
Many finance pros recommend that newcomers invest in exchange-traded funds (ETFs) rather than individual stocks. That’s because ETFs let you own a tiny slice of multiple companies, which can help spread out your risk. Still, understanding how individual stocks move can give you a clearer picture of the economy and grow your investing confidence. That’s where MarketSim comes in. It’s real results with fake stakes, allowing you to track companies, trade, and build your investing muscles.
Key Features:
Start with $10,000 in (pretend) money. Want more? You'll have to watch a quick ad (this is how the app generates revenue), then you get even more Sim bucks to play with.
Track your portfolio in real time with a simple interface.
Perfect for learning how stocks work and keeping tabs on your favorite companies.
Trending products and brands our shopping team has been loving recently.
Until December 30, Skimm'rs get 20% off at Bernardo with code SKIMM20. We appreciate this stylish wool coat with an insulated lining. Clever.
Pro tip: You only need one, really good pan. We like the Titanium Always Pan from Our Place, and you can get it on sale through January 12.
These are the holiday gifts we think you should treat yourself to, because money spent on yourself is money well-spent.
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