Everyone wants success, and sometimes that success is defined by becoming financially stable. When we say financial success, it can mean many different things depending on the person, but in general, it is for the person to not get stressed about their finances. Being financially stable involves having money set aside for emergencies. You are also preparing for your retirement and other future scenarios that your family would need in the future.
One way to successfully achieve your financial goals is to make investments. Investing your money allows you to grow it while you still do not need it. Financial advisors will always recommend creating a varied investment portfolio to ensure that your money does not stay in one basket.
There are many different kinds of investments you can choose from. There are mutual funds, stocks, bitcoin, gold, and more. But if you are looking for something new to explore, you might want to look into sustainable investing.
Understanding Sustainable Investing: What Is It?
Also known as socially responsible investing or ESG investing, sustainable investing is an investment discipline that considers environmental, social and corporate governance before committing and generating financial returns. In short, there is another goal besides growing your funds. It is to create a societal impact as well.
Here are the three fundamental factors you need to keep in mind when considering this financial venture:
- Environmental Factors: Only invest in companies that are conscious about their carbon footprint and waste and energy management. Not only are they conscious, but they start to also do something about them.
- Social Factors: Also check their internal processes. Do they follow the social and labour practices that companies should comply with? Do they have issues with how they treat their employees? Do they make their employees happy and healthy? Answers to these questions will give you an idea of how they are as a company.
- Governance: The last thing you want is to invest in a company that has questionable internal practices. Look for companies you can trust as it says so much about their character and value as an organisation.
Why You Should Consider Green Investments
A sustainable company comes with a positive image. This generation demand better practices in the industry, and more and more people want these green companies to succeed. When people start seeing everything in this light, the possible financial risks associated with such businesses are no longer highlighted.
People start to see green companies as long-term investments with good chances of profitability, especially if they are transparent with how their companies work.
Furthermore, people hold high regard for their values. As much as possible, these investors look for products and solutions that meet their interests.
Conclusion
The millennial generation has completely different priorities, and that is not difficult to understand because of the environmental destruction happening in the world. These young investors want to know where their money goes and the kind of impact it makes. And as much as possible, they want to ensure that their investments mean more than making a profit. To them, sustainable investments are hitting two birds with one stone.
Are you interested in learning more about sustainable investments? New Wave Financial Planning is here to help. We are your new wave of financial advisors who are dynamic and forward-thinkers. We offer the best financial advice at Gold Coast and only give tailored advice to our clients. Get your free initial consultation now.
