In the working world, women still earn only about 76 cents for every $1 a man earns. What they’re doing with less, however, shows how investment-savvy women have become.

After just a few decades as major players in the workforce, women have become successful employees and entrepreneurs. The nation’s 10.6 million female-owned businesses, for example, generate nearly $2.5 trillion in sales, and women control 51.3 percent of the private wealth in the U.S. Generally, women now are in a better financial position to invest. And they’ve learned they can get into the game with a small capital investment: many new investors start with about $100 per month; investors in 401(k) plans can start at around $50.

Many women have become investors for legitimate emotional reasons. Women generally live longer than men do—seven years longer, on average—and, therefore, need their retirement funds to last longer. Often, women’s desire for financial self-reliance comes from experiencing, or watching others experience, depletion of their finances after being widowed or divorced. Investment advisors say that “becoming a bag lady” is a common financial fear for women.

This fear isn’t groundless: about 75 percent of the elderly poor are women. Investing can eliminate those fears by giving women greater control over their financial destinies.

As their financial power grew, investing began to look appealing—and possible—to women from all walks of life. Women now account for 50 percent of stock market investors, and the National Association of Investors Corp. reports that all-female groups make up 54 percent of its 21,312 registered investment clubs.

Resources, which were rather limited 25 years ago, are boundless: from the Internet to television business programs, from investment books and magazines to radio talk shows. And today, investors can track stocks throughout the day using everything from a home computer to a wireless phone.

Using such resources, women have shown an inclination to perform the due diligence required to be good investors. Women often will do in-depth research into a company’s financial history to make sure it represents a sound investment. And women tend to be good investors: a nationwide study conducted in May 2005 showed women generally put financial plans in place and resist changing course to pursue “hot stocks,” taking a longer term approach that causes them to make fewer investing mistakes, on average, than men do.

Investing can seem intimidating to many women because they don’t know where to begin or how to decipher investment jargon and rules. Here are a few suggestions:

• Know your financial assets. Knowing how much liquidity you’ll want to have available for a rainy day can answer the question of how much to invest each month.

• Manage your time. Often, non-professional investors find they could devote many hours each day to managing their portfolios. You’ll need to decide how much time you’re willing to devote to investing.

• Identify your risk tolerance. It’s wise to enter investing slowly and operate at a comfortable risk level. Using historical data, a money manager can show you how much risk is involved in your investment plan. Although it can’t guarantee results, historical data can give an indication of future performance. Investing in 401(k) plans at work or in a low-risk mutual fund outside of a 401(k) is often a good place to start.

• Set goals. Determine where you’d like your investments to be in three to five years. Then develop a plan to make it happen.

• Ask for directions. No matter how educated you become about the investment game, a professional money manager can offer beneficial insights and direction. Financial institutions’ money managers follow a disciplined investment strategy and have up-to-the-minute financial data. Look for a financial institution that takes a team approach. This philosophy suggests that an investor is better served by a team of investment professionals, rather than by a single “star” performer who could be gone tomorrow.

• The light’s green. There’s an investment strategy that’s right for everyone. Get started, and you’ll find that investing can create equity in more ways than one. TPW