The numbers are real. Statistics reveal that women, on average, earn better investment returns, save more of their wages, and are more consistent with their investment behaviour. And still, fewer women make personal investments a priority than men. Why do we, as women, not do more of what we’re clearly good at?
The Gaggler spoke to Angela Soudi, co-founder of Be Unique Group, a leading sales and marketing consulting firm in the Middle East. Having come to Dubai with almost no money to her name, Angela has experienced both highs and lows of career and business ownership over the last 12 years. Here, she shares her insights on work, money, and investing for the future.
Q
You manage multiple businesses. What does money represent to you today and how has it changed over time?
A
My parents were working class – my mother was a nurse who worked nights and my father owned a small business. Both my parents were hard workers and, from them, I learned the importance of a strong work ethic. Watching them left a strong impression on me that I had to work hard for money and save money so that I could buy a roof over my head. I recall being surrounded by statements about money such as ‘money doesn’t grow on trees’ and ‘we aren’t made of money’. So, growing up, I believed it was really hard to make money. There was no talk of investing to earn greater returns in my family. I thought investing was for rich people – not me.
As my business began to grow, I saved money – that’s when I started to think about investments. I am an avid reader and began reading books on the subject to see how I might possibly be able to leverage different investment strategies to make more productive use of my savings. Then, I started to look at the wealth management options available in Dubai in a serious way. I was still very sceptical. It took me six months to become comfortable before I could even think about handing over my money to an investment professional to manage it for me. I was never taught to look at the stock market or trading to make money.
After doing a lot of research, I finally took the leap with a high-wealth trading platform and put the minimum amount I needed to. It was when I started to see returns coming back from my original investment that I wished I had learned about investing and personal finance earlier. I wished I had acted sooner. My view of money is very different today than when I was growing up. Now, I believe that money can work for you. Financially, I am in a situation where I really don’t have to work – 80% of my income now comes from passive or investment sources, and 20% from my salary. Despite this, I still have an inner force that pushes me to continue to spend some of my time working and keeping the rest of my time for family and leisure. Somehow, ‘earning’ money makes me feel more deserving. I do love the security of my passive income, but I still go to work.
Q
Clearly, your upbringing had a profound impact on your initial views about money. Is there a particular incident that stands out about your early relationship with money?
A
I went to school in the UK, and I recall a time in high school that carried quite a bit of pain for me. Every year, there would be school trips to different European destinations. I was never one of those children who went on those trips. And I remember the physical pain I would feel when the teacher would hand out the application for the parents to sign. I knew I’d never get to go and felt like an outcast. I’d make excuses to my classmates so as to avoid ridicule. My family just could not afford those trips. We were fortunate to always have food, clothes, toys, and all the other essentials to live. However, extras like vacations were not something I grew up with.
And then my experience with money flipped after completing high school. As a young adult, I didn’t attend university as I couldn’t afford it. My escape back then was dancing, and I trained and qualified as a ballroom dance teacher. I was the youngest who qualified and started to give dance lessons to earn money. So, from an early age, I was driven to earn my own money. I had a taste of what it was like to make money at a very young age. When my friends graduated from university, they were broke and I had money. The tables had turned.
Q
You decided to start investing your earnings not too long ago. What triggered that move and what has the experience taught you?
A
I started investing in late 2020 after I saw my husband invest with positive results. My husband is a risk-taker, and he was actually brought in to help train the company’s staff. As he learned about the company’s business operations and approach to investments, he invested his own money. At first, I was suspicious because it sounded too good to be true because of the ‘I have to work hard for my money’ mentality that I was brought up with.
When I saw his financial status change over the course of one year, my curiosity was piqued and I wanted to know more. My husband educated me, explaining how the investment strategy would work if I decided to commit my money. Again, when I did invest, I did so with the minimum amount required because I was still so sceptical.
Q
Tell us more about passive income generation and what type of investment you’ve invested in?
A
There are many different investments and strategies you can invest in, and I can only describe what I have invested in personally. I am what’s considered a risk-averse investor, so I am comfortable with taking on no to minimal risk. I want my money to be secure. There are many different types of ‘policies’ and I opted for a ‘safe’ policy. I’d rather have less income, but have it secure, than take on additional risk and have anxiety.
Now, I earn above-average rates of return annually from my investments because I work with a wealth manager. If you go to the bank, you may earn a 3-4% interest rate on fixed deposit programmes. However, annual inflation is about 5%, so that will wipe out any return you receive. If you invest in real estate – and I have – you will earn around 6-7%, which doesn’t leave much over after inflation.
The way the ‘safe’ policy works is your investment is held with a regulated bank. I provide a power of attorney to my wealth manager, and they are only permitted to withdraw 30% of my original investment to invest in a variety of commodities, digital assets, and other types of investments. The wealth manager does not own your funds; they are just permitted to trade your funds according to the policy you’ve selected.
Q
What are the advantages and disadvantages everyone needs to consider before investing in passive investments?
A
As with anything new, it is so important to do your checks and get references. If you are talking to a wealth manager, ask them to put you in touch with people who have invested or request case studies. Another consideration that’s important is ‘time’ – the policy I selected is a three-year policy. This means I cannot access the original investment for three years. You can do a two-year policy. Whatever policy duration you choose, make sure you can do without the investment amount for that period. And as with any business, check that the wealth manager or firm is licensed.
Q
How has passive income generation changed your life?
A
Aside from the material gain, I have benefitted from not needing to work if I don’t want to – passive income has allowed me the ability to care for my mother. My mother had a brain haemorrhage a while ago and therefore needs round-the-clock care. I am able to pay a family member to care for her full-time in her own home because of the passive income that my investments generate.
This has also allowed me to have more free time to spend with my young children because I am not worrying about spending all my time ‘earning’ money. Growing up, I had this mindset that money causes bad things to happen. However, my experience has shown me firsthand that I’m able to help more people and do positive things with money. Good people will do good things with money.
Q
You’re passionate about women improving their financial literacy and leveraging investments to achieve their personal finance goals. Why is this important to you?
A
We live in a society whose foundation is based on the most unsaid rule – women start their careers, then get married, start a family, and are put into the role of primary caregiver overnight. Whilst I was happy to step into that role and raise my two boys, my financial identity changed completely because I was pulled in many different directions as a mother.
This new role didn’t allow for me to keep the high-intensity work schedule that I had before children. Having the ability to put my savings towards investments that generate passive income I can comfortably live off is such a relief and allows me to work, raise my children, and live my life. I want more women to know that they, too, can feel this level of ‘freedom’ by taking small steps towards applying their savings to uses that can generate better results in the long term. It is so important for women to focus on financial literacy and explore different financial options.
I feel women are fearful of taking that step towards securing their financial future by exploring investments, and I want to help remove those fears. A Barclays Wealth Management study found that female investors experienced better results than men because women are more astute, do more research, and are more consistent. However, today, there are still less women investing for their financial future than men. This narrative needs to change.
Q
What advice would you give your younger self about money?
A
Invest in financial literacy. Save sooner, save more. Understand compound growth. This last point is the most important I feel. Albert Einstein said, “Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it.” Money makes money. I wish I had known – and understood – the power of compound growth in my younger days.
Q
What’s one thing about money that every woman should know?
A
Women need to see money as energy. When we have negative blocks in our mindset about money, it will not flow. Studies show that 99% of the beliefs we hold as adults are from childhood, so I feel it’s really important for women to work on their money blocks and create new positive beliefs related to money for their financial security.
Visit www.instagram.com/angelasoudiofficial to learn more about Angela’s personal finance journey. This article is for informational purposes only. It is not, nor is it intended to be, a substitute for professional advice. The views expressed are those of the interviewee and do not necessarily represent the views of The Gaggler.
