When looking to grow your earned income for positive influences, learning how to invest your money responsibly is one of the most effective ways to grow income while being socially responsible.
Incorporating environmental and social influences into your investment strategies can not only help build your finances, it can also serve as a way to give back to your community.
Individuals wanting to support causes they care about can utilize the investment market to generate a bigger impact on the issues they want to influence. While investing in mutual funds that support your cause can be a way to grow income while making a positive influence, the majority of mutual funds tend to invest in anything that generates a positive return.
For a more focused investment strategy when investing in mutual funds, investors can find funds that adhere to similar principles and causes. Whether wanting to invest in companies with women in leadership roles or in a company working to combat climate change, there are numerous ways to invest your money responsibly.
Whether looking to make your community safer or affect positive change around the world, investing responsibly has many different meanings for various people.
The chart below details a balanced mix of socially responsible investing and how each investment is allocated across multiple financial portfolios:
Source: USA TODAY
Local Investment Strategies
While stocks and mutual funds can target bigger corporations, some investors looking for more responsible investments have other options beyond traditional markets. For a more local impact when investing responsibly, starting a small business association to provide start-up funds for local businesses can be extremely influential on the community.
A safer and more secure local investment could be as simple as purchasing a certificate of deposit from a Community Development Financial Institution that is federally insured and serves local residents. Invest responsibly in local real estate can also brighten blighted communities to help improve the community you live, work and enjoy.
When seeking to invest responsibly, a sound investment strategy is to compare low risk and high-risk investments to properly protect your assets. The chart below details how wild investment returns can be for high risks, while a one-month CD has help relative steady value.
Invest Responsibly with New Technology
Just as first-time oil investors capitalized on the initial needs of the fuel, investing in new fuel and sustainable energy technology is perfect for investors interested in environmental investing. Investors with a passion for alternative fuels, plastic recycling, reducing carbon, or the next technological advancement, do have plenty of investment opportunities.
While significantly more risk is involved, the ability to generate bigger returns while positively influencing the world is a consideration any investor must weigh.
With nearly 9 in 10 millennials indicating they’re interested in socially responsible investing, according to USA TODAY, there is a growing need to find investment alternatives for investors seeking a more effective way to manage their money while also positively influencing their community and the world.
To better align your social beliefs with your investments, speaking with a financial planner can help you set financial goals that are in step with the environmental and local community you want to impact.
Matt Logan is experienced with steering clients toward the economic and socially responsible investments of their choosing. If you need help achieving your financial goals and finding proven strategies geared to fit your finances and lifestyle, don’t hesitate to reach out to Matt Logan to see how he can help you and your family. Give a call today: 336-540-9700.
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