Personal values play an important role in many aspects of our lives and have become more prominent recently in how we think about and manage our finances. More and more investors are asking how they can support the causes they care about through their financial decision-making.
A survey found that 69% of Americans say supporting causes they care most about is a top consideration for their financial decisions. If you count yourself among them, consider starting with a financial plan to ensure you stay on track toward your longterm goals while also staying true to your personal values.
Define your saving and spending goals
The best way to start is by translating your dreams into concrete financial goals. Identify your most important goals and commit to saving toward each. Write things down so you can build confidence, stay focused and refine your plan over time while prioritizing both your financial wellness and the greater good.
We also see this values-based approach in spending habits, with many Americans indicating that they aim to support brands that align with their beliefs. Shopping local, buying secondhand goods, and choosing brands that support environmental and social causes are a few ways consumers make an impact with their purchasing power. Knowing what you need to save toward your goals helps determine how much you can spend. Armed with that knowledge, you can spend in a way that matches your values.
Align your investments with your values and interests
With personal beliefs and interests becoming more important in saving and spending, investors are also seeking ways to tie those values into their personal portfolios. Almost three-quarters of American investors agree that their values guide their investment choices, and most say that they invest in companies that align with their personal values.
As you build your own portfolio, various strategies can support your desire to align your investments with your values. Environmental, social, and governance (ESG) investing or socially responsible investing (SRI) are two strategies gaining traction, for example.
Whether you’re an experienced investor or just starting out, Whatever your goals or investable assets are, we’re here to help ensure you’re on the right track.