Sustainable living is more than just a buzzword these days; it has impacted our lives from the products we consume to the food we eat, helping us find balance in our lives, both physically and mentally.

So why not apply this concept to the way we invest our money as well? Enter—socially responsible investing.

Every dollar we spend gives us the ability to make a change in the world and as investors, we are at the forefront of creating a lasting impact. This can be done through Socially Responsible Investing (SRI) which gives us the ability to grow our money while investing in causes we care about.

Investing in clean energy The Star

What is Socially Responsible Investing?

Socially Responsible Investing is when investors consider environmental, social and governance (ESG) factors when choosing where to put their money. This means choosing businesses that are ethically sound and align with the core values of the investor. SRI also means avoiding industries that have a negative impact on the environment, such as alcohol, tobacco, fast food or fossil fuel production.

The most important ESG factors vary by investor. Some may care most about the size of a company's carbon footprint while others might prioritize fair treatment of employees and ethical practices in the workplace. SRI has become incredibly popular in recent years and The Bank of America estimates that there will be a $20 million flow in this type of investing over the next two decades.

Different ways to invest in SRIs

Socially responsible investing is entirely dependent on what the investor wants to support through his/her investment strategy—be it climate change or workplace equality. Hence, there is no one size fits all approach to this type of investing. Here are a few ways to invest more intentionally:

Mutual Funds

Mutual funds are known to be safe bets for many investors, and they are popular among socially responsible investors as well. There are more than 200 socially responsible mutual funds on the US SIF website for investors to choose from. You can find data on the financial performance of a stock along with information on how the company in question contributes towards a greater social impact.

SRI mutual funds focus on three main areas:

1. Environmental, Social and Governance funds—or ESG for short—are funds invested in industries that have adopted ethical practices. The company's material impact is taken into consideration along with its financial performance.

2. Impact funds—While ESG funds place equal importance on both impact and financial performance of a stock, Impact funds aim to put social impact first. These funds invest in companies that create societal change but may not offer the best financial return. They're good choices for investors who prioritize their social intentions over financial gain.

3. Faith funds—These funds invest in stocks of companies whose values are based on the Christian, Catholic or Islamic faith. Companies that don't fall under this category are excluded.

Alternative Investments

Socially Responsible Investing isn't just limited to mutual funds; other investment assets are getting into the SRI game as well. Alternative investment options for ethical investors include property funds and hedge funds which are said to be a $588 billion industry today. Investors who opt for this type of security have over 780 alternative investment funds to choose from.

What is socially responsible investing? Capital.com

Advantages of SRI funds

People who take the socially responsible investment approach usually tend to go all in. This means that their portfolios only include stocks of companies that are socially and ethically responsible. Here are the benefits of adopting such a strategy:

1. Stick to your values

All our actions and reactions are based on a core set of values that we follow. Socially responsible investing lets us apply this principle to our investment strategy as well. Investing intentionally through SRIs allows you to do more than just discuss social issues; you have the ability to use your money to take action for what you believe in.

2. Invest and let go

Most financial assets we invest in require micromanagement—either by us or a financial advisor. SRI funds, however, are designed to be low risk, allowing you (the investor) to adopt a hands-off approach. You can use your time to focus on riskier assets in your portfolio.

Disadvantages of SRI funds

While SRI funds may seem like a great addition to your portfolio, they do have drawbacks as well. These include:

1. Financial performance takes a backseat

Socially responsible investing allows you to invest in causes that you care about, but very often a strong focus on a company's ethical practices means that financial performance can take a backseat. Studies done on SRIs at different time periods showed that they underperformed in comparison to other stocks. Hence, when picking SRI stocks, it is important that you don't deviate from your financial goals.

2. A marketing gimmick

Although climate change and the carbon footprint are growing concerns, it is also important to remember that we live in a society where profits trump social ethics. Companies that claim to be ethical or socially responsible may be using corporate partnerships to improve their position in the market. In many cases, the illusion of social responsibility is simply a marketing gimmick to earn greater profits. The sad reality is that businesses who promote eco-friendly practices may be the perpetrators of an environmental scandal. A great example of this is when Volkswagen deliberately claimed they would design a system to reduce carbon emissions in order to gain an edge over their competitors; meanwhile, the company's production plant was actually poisoning the planet.

Is SRI the right fit for you?

Millennials and Gen Z are at the forefront of using socially responsible investing to create a lasting impact with their finances. This in no way means that SRIs are a fad that will eventually pass—in fact, they are here to stay. Between 2016 and 2018, the number of investments in SRIs grew by 38 percent. In the world of investing where making money has become the main goal, socially responsible investing allows you to earn an income while promoting change.

At the same time, this investment strategy may not be for everyone. In certain situations, investors should be willing to forgo extra income in favor of supporting a social cause. This trade-off is something that needs to be considered before investing with this approach. However, if you put in the time and effort, it is possible to find stocks that meet both your social and financial goals. Striking that perfect balance can help you feel secure, knowing that your finances are put towards a worthy cause!

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I thought I had a pretty good handle on my finances out of school. I worked several jobs while attending university and had little to no problem managing my income. However, once I graduated, I realized how much more complicated personal accounting could really be.

There were so many variables I needed to keep track of. Biweekly bills, monthly charges, and general necessities amounted to a heap of confusing numbers that were often impossible to decipher. The funniest part was that I was actually trying to do this by hand (I don't know what I was trying to prove to myself, either).

After messing up for the 17th time, I decided to give Microsoft Excel a shot. I used Excel a bit in school and I knew all the big-wig finance people used it, so what could I possibly have to lose? The answer is about six hours of my precious time. Excel isn't much of an improvement over handwriting and it's still dependent on the user to manually input all of the information. It's like doing everything by hand with the slightest help, meaning that it still required a tremendous amount of time and concentration. Well that was all for nothing, I guess.

It's sort of funny. I was certain that I could manage my personal finances with ease, when it's practically a full-time job. I was already stressed out enough with my first job and I knew I didn't have enough time to give my finances the attention it deserved.

That's why I decided to try out a budgeting app. My best friend told me that he uses an app called Truebill to manage his finances. "What does it even mean to manage your finances?" I asked him. He told me that Truebill was the personal financial assistant I wished I could have. It could aggregate all of my account information into one place and give me specific insights and actions.

I loved the idea of having full control over my finances, especially during a time of financial uncertainty, and I realized that Truebill would be the easiest way to accomplish this. The user interface is incredibly simple and intuitive, so it doesn't even feel like a finance app! Truebill offers a multitude of features, with their most popular being the ability to cancel subscriptions with the press of a button.

Okay, I had no idea how many subscriptions I was still subscribed to. In fact, I wasn't even using a quarter of the subscription services I was signed up for. Subscription boxes, streaming services, my old gym, and even an old subscription to my favorite magazine--it was all there and I was livid. How could I let myself waste all of this money and how did I never catch this? Thank goodness for Truebill.

Truebill also offers bill negotiations. There is a 40% fee based on how much you save and Truebill even claims that there is an 85% chance that they'll be able to lower your bill once a negotiation is requested. Why wouldn't I take them up on this? There was zero risk and I would only have to pay once my bill was lowered (which means that I would be saving money regardless).

More standard features of Truebill include the ability to generate a credit report on-demand and even request a pay advance. I only used the pay advance feature once when I wanted to buy a gift for my mom, but didn't have enough cash in hand and Truebill automatically reimbursed itself when I got my next paycheck.

The credit report is another fantastic feature and practically taught me what good credit meant. Truebill's credit report basically shows you which financial decisions have the most significant impact on your credit score and ways that you can improve your credit month-over-month. I've never had such control over my credit and it feels good.

I'll be the first to admit that I was extremely naive coming out of school. I figured that as long as I was attentive, I could manage my finances with ease. We manage money to some extent throughout our entire lives, but once you're thrown out on your own, it's a completely different story. With Truebill, I've finally been able to take control over my finances and stay on top of all of my responsibilities.

Update: Our friends at Truebill are extending a special offer to our readers! Follow this link to sign-up for Truebill.

My buddies and I always try to make it out to a game, but we never really care which one we end up at. Obviously we have our favorite sports and teams, but it was rarely about what game we went to or who we saw playing. It was about watching the game live.

In the early months of lockdown, all we had was Korean baseball, and trust me, we loved it. The only issue was, none of us had any idea what the commentators were saying. Even then, a few of my friends weren't huge fans of baseball. They were into sports like football and basketball, ones that moved at a quicker pace with less down-time in between plays.

We decided to see if there were any other events going down and came across horse racing. Yes, horse racing. It was perfect--short, fast-paced, and most importantly, an opportunity for betting.

I had never really considered watching a horse race any time other than the Belmont Stakes, but the prospects of the sport seemed exhilarating. Even better, with horse racing we knew we could still recreate the atmosphere of a race track. Salty snacks? Check. Stale beer? Check. A simple and easy way to bet? Check.

One quick Google search later, we came across TVG, powered by FanDuel. It's an online betting platform that takes you right to the heart of the action. We were a little apprehensive about using a mobile app to place our bets, but TVG's ability to bet on live horse races from all over the world was too good to pass up.

Here are 5 reasons why we are obsessed with horse racing thanks to TVG:

1. Betting has never been easier

Use your phone or computer to watch and bet on live horse races in real-time. TVG offers a bunch of features to make betting even simpler--live odds and handicapping tips leverage recent learnings to help you make your best bet. Not to mention, TVG's exclusive race content and wagering guide offers an under-the-hood look into the strategy behind horse race betting.

2. The biggest selection of horse races out there

If you're looking to drop a little dough on a horse race, chances are your best option is your local race track. But watching the same few horses races over and over again isn't the most exciting thing. With TVG you have access to over 150 tracks worldwide with races happening consistently throughout the day.

3. Get a generous sign-up offer when you place your first bet

Once you register your account, you will be eligible for a $200 risk-free bet. All you have to do is place your first bet and you're covered. If you happen to lose, TVG will insure you for up to $200 as a sort of wagering credit. I may have been a little trigger happy when placing my first bet, so having this insurance was a great perk. There are also a bunch of promotional offers available year-round.

4. Making deposits and cashing out at the touch of button

With a ton of payment options such as PayPal, BetCash, debit/credit, wire transfers, and other third-party services, making a deposit is a breeze. But what about the payout? Depending on your deposit method, your withdrawal will be available in a few days. No more waiting in-line to collect your winnings!

5. Watching live races with your friends while betting is exhilarating

Even when we were watching Korean baseball, Zoom calls with my friends were a little dull.

With TVG, we haven't had this sort of fun in months! Every weekend we'll turn on a race and throw our bets in. After a few races, and quite a few drinks, we'll tally up our winnings to see who won the most! Sometimes it's not even about making money, but just having a good time.

TVG is the perfect way to add a little excitement to an otherwise mundane afternoon. It introduced me to the world of horse racing, a sport I never would have considered otherwise.

The races just keep ramping up and thanks to TVG, I can always get in on the fun.

UPDATE: The biggest derby in horse racing is THIS WEEKEND. Get in on the action with your $200 risk-free bet!

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