Growing Womens Wealth is imperative if we want to change the world. In addition to the gender gap, women are now heading major corporations, the International Monetary Fund, and pivotal economic players like the U.S. Federal Reserve. Yet, they still represent a smaller percentage of high net worth individuals than men. The top ten richest women in the world are roughly equal to their male counterparts. Fortunately, there are a number of ways to grow your wealth, whether you’re a woman or a man.
A new study by the Boston Consulting Group shows that women own $39.6 trillion in assets, accounting for 30% of all wealth globally. The number is increasing: women are increasingly acquiring wealth through inheritance and divorce payouts, while starting and running their own businesses. In fact, women’s start-ups generate 0.78 in revenue for every dollar invested compared to 0.31 for male-run businesses. And the numbers are only expected to continue rising.
Many women inherit money from their parents or partners, and this is a huge source of wealth. Women are also starting and selling more companies than ever before, with a growing percentage of them becoming unicorns (with a $1 billion valuation). According to Crunchbase, 83 percent of unicorn companies were founded by women in 2021 and 18 percent by 2020. And more women are exiting their companies in public offerings or buyouts. Last year, Spanx founder Sara Blakely sold her company to private equity firm Blackstone.
In the next decade, American women are expected to control $30 trillion in financial assets – more than double the GDP of the United States. And this wealth transfer will be especially beneficial for women. According to McKinsey & Company research, women will control nearly half of all wealth transfer in the next decade. If the trend continues, women’s wealth will continue to grow. They will have more opportunities to make major contributions to society in the years to come.
One way to increase women’s wealth is to invest in companies that have a high-net-worth. The majority of ultra-high-net-worth women are entrepreneurs. They are the CEOs of Fortune 500 companies. Many of these women also lead philanthropic programs, and have significant influence on the future. By investing in women, they will have a higher chance to create wealth for their children. And in addition to their own family, women can pass down their wealth to their children and grandchildren.
When it comes to entrepreneurship, it’s important to remember that millennial women are more likely to build wealth than their older counterparts. In contrast, older women are more likely to inherit their wealth from their parents, so the next generation will be able to succeed in business. Most HNWIs would like to pass their family businesses on to their children, but often face difficulty convincing them to do so. But that’s not the end of the story.