From Saver to Strategic Investor

The concept of “girl math” may be a quirky internet trend, but the real math is this: women are more likely to keep extra money in cash savings instead of investments—and that choice can limit long-term wealth.

Women are strong savers, and research from the 2025 Charles Schwab Women Investors Survey shows progress: 84% of women now own stock market investments.

Still, many women feel hesitant about moving from saving to investing. If that sounds familiar, keep reading. We’ll cover a few uncomfortable truths and practical ways to get started without unnecessary risk or complexity.

Why Saving Alone Isn’t Enough

The saying “a dollar saved is a dollar earned” falls apart once inflation enters the picture. Think of inflation as the hidden tax that eats your purchasing power. The math is pretty simple: if inflation is at 3% and your savings account pays 1%, you’re losing 2% of your wealth annually.​

There’s also the opportunity cost of not putting excess money to work in the market. Since 1957, the S&P 500 has returned 7% per year, inflation-adjusted.

Distinguishing between saving and investing is the first step toward growth. CDs, money markets, and savings or checking accounts are not investments; they are cash or cash equivalents. If saving is about preservation, like pickling fruit to keep it from spoiling, investing is about cultivation. You are planting seeds that eventually provide a harvest far larger than what you started with.

The Mindset Shift: From Protector to Builder

Going from a protector to a builder is an evolution, not a rejection of caution or an all-or-nothing approach. It also requires letting go of old thoughts that keep you stuck.

One mindset barrier is loss aversion, in which the pain of losing money feels worse than the joy of gaining it. A quick reframe that might help is knowing that choosing not to invest your excess cash doesn’t mean that you won’t lose money, again, due to inflation.

Another mindset issue that keeps some women from investing is a lack of confidence in their investment skills or knowledge. Ironically, data shows that women often make effective long-term investors: Wells Fargo’s Women and Investing Study found that female-led portfolios outperformed male-led portfolios.

Vanguard also found that women are more likely than men to hold a single target-date fund, a set-it-and-forget-it strategy that’s a cautious and disciplined way to invest. Remember, you can choose your investments based on your risk tolerance. 

Common Traps That Keep Savers From Becoming Investors

Several common traps can make the transition from saving to investing more difficult for women:

• Overreliance on cash for emotional security.
  Research from SoFi shows that 71% of women’s assets remain in cash rather than invested or placed in retirement accounts. Cash can feel safer, especially during periods of economic uncertainty.
• Financial stress despite strong saving habits.
  A Fidelity survey found that 93% of women feel stressed when managing money. This number stays fairly consistent regardless of their total household income.
• Holding excess cash beyond emergency needs.
  While having a savings cushion for emergencies is so important, keeping significantly more cash than needed can slow long-term wealth growth.

These concerns may help explain why women often take longer than men to move from considering investing to opening an account, with Barclays research showing an average delay of several months.

How to Put Strategy Into Action

Having a plan can make a meaningful difference in how confident women feel about their finances. Key considerations when moving from saving to investing often include time horizon, account type, and simplicity.

• Time horizon:
  Short-term goals, such as money needed within the next few years for a home purchase, a wedding, or emergencies, are typically kept in cash or high-yield savings (HYSA). Longer-term goals, including retirement or long-term wealth building, are often better suited for market-based investments.
• Account selection:
  Many investors use a mix of tax-advantaged accounts, such as a 401(k) or Roth IRA, alongside taxable brokerage accounts for money that may be needed before retirement.
• Keeping the strategy manageable:
  Automating contributions and using broadly diversified options, such as target-date funds, can help reduce complexity and limit emotionally driven decisions tied to short-term market swings.

The Bottom Line

Investing isn’t a departure from financial safety—it’s part of it. Shifting from a ‘protector’ to a ‘builder’ mindset means you’re stepping away from hoarding too much cash and are instead securing your future purchasing power. You don’t need to choose between saving and investing; you can have the best of both worlds to grow your wealth and build long-term security.