Making our money work for us and for the world

Post by : Emily Bennet on 10.04.2019

Socially responsible generation

We live in an era where ignorance is simply no excuse. We have a wealth of information at our fingertips and we are more enlightened than ever about our effect on the world.

We are now living longer than ever in history. With this in mind, we need to be even more prepared for our future and retirement, and unfortunately cash and savings don’t last long with the current interest rates for nearly all saving accounts on the market. As such, it is becoming more and more common to look at different investment options for both long-term and short-term profits.

People starting to invest today are not just interested in personal gains. People want to invest with impact and have a positive impact on society. This awareness and new way of thinking transcends personal finance. Globally, humans are looking at different ways to make the world better. Once we learnt about climate change and global warming, we collectively looked at solutions. As a result, we have developed global energy systems across the world.

The world drastically needed kinder solutions for power and a lot of work has gone into finding better options. Due to this, it has now been estimated that renewable energy sources are going to be the main source of power in the whole world by 2040.

Investing with impact

Once you decide to begin investing it is wise to ensure that you are investing in the causes you care about, for example advancing renewable energy initiatives. There are numerous ways to learn how to invest in stocks. It helps to get as knowledgeable as you can about the sectors you are interested in and learn about different stocks within that sector. If you are interested in impact investing, find stocks that match your long-term value and that also offer sustainable economics.

Other ways to ensure your investments are impact-focused is to check them against ESG indicators. ESG stands for economic, social, and governance and is a great tool for investors wanting to know that their investment is responsibly sourced and isn’t contributing to climate change.

Most investments you can do on the market will always contain some level of risk. However, if your investments align with your personal values and long-term objectives there is a higher chance will have the patience and can oversee minor losses. You are also more likely to spend time learning about the area in the stock market that meets your ethical goals and as such, you can make more informed investments and decrease your risks.

The new norm

If you have never invested before you should begin by familiarizing yourself with the industry and once you feel ready, start with small investments. The more comfortable and confident you grow over time the more you can increase your investments.

Reading up about bad investment habits can assist you in making smarter choices but ultimately, the market will never be 100% predictable. It used to be that looking at investment history could tell you how a certain market would move, but the past might not always be able to indicate what the future will look like. The investment industry is changing drastically as a new generation of investors is taking over and socially responsible investing is becoming the new norm.

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