We all know that saving for the future is important, but it’s also something that we often put off or lose interest in. But you can combat this problem by investing sustainably! To get started, here are steps to investing in a positive way:
Tilt Your Portfolio Towards Positive Impact
Positive impact investments are investments that improve the lives of people in poverty, protect the environment and advance human rights. You can find these investments by looking for companies with triple bottom line reporting. Triple bottom line means that a company considers three things: profits, people and planet. This means that a company is not only concerned about making money for their owners but also about how they treat their employees, how they impact the local community and what environmental impact they leave behind.
In NachhaltigInvestieren (Investing sustainably) it doesn’t mean avoiding all high-risk stocks or investing only in safe bonds or boring mutual funds—it just means you have to do your research before putting your money down on any given investment option (and make sure it has solid financials).
Diversify To Minimize Risk And Maximize Returns
Diversifying your portfolio will help to minimize risk and maximize returns. How? By combining investments that are uncorrelated, meaning they don’t move in tandem. For example, you can invest in different types of assets that serve different functions: stocks and bonds; gold or real estate; or even cryptocurrencies.
Diversification is important because it helps protect your investments from market volatility. By spreading out your money across multiple markets, you’ll have a higher chance of profiting than if all of your funds were tied up in one sector or industry.
Enjoy The Process Of Saving For The Future
While you’re saving for the future, it may be helpful to remind yourself of the benefits of investing sustainably. First and foremost, you can enjoy the process by doing your research, diversifying your portfolio and automating your investments. You should also make sure that you are getting solid returns on investment (ROI) so that your money grows over time. And finally, it’s important to remember that this is all about having fun!
When making a decision about how to invest ethically or sustainably, there are several factors that you should consider. For example:
- How much money do I have available?
- Have I done enough research?
- Will my chosen method provide me with good ROI?
Investing In Companies That Are Aligned With Your Values
Companies that are doing good in the world, working to solve social and environmental issues, and making the world a better place are important to you. If this sounds like you, then investing in companies who share these values is a great way to make sure that when you invest your money it’s going towards something that matters to you.
Automate Regular Deposits Into Your Account
You can automate regular deposits into your account. This can be done either through a recurring deposit, or setting up an automatic transfer every week or month. There are many ways to do this, depending on which bank you use and how much control you want over when the money goes in.