Moneymentals | Our Blog


A Different Take on Socially Responsible Investing

When you look at the companies within a mutual fund you’ve invested in, are you a proud supporter of each one? Or are there certain industries you’d rather not finance? Companies in a mutual fund don’t come a la carte. The closest you can get to being able to pick and choose is Socially Responsible Investing (SRI) — but the effect is still questionable.

When you invest in a mutual fund (a collection of securities from various corporations), you’re automatically helping to finance companies that do a variety of different things — some of which may not coincide with your values. Mutual funds for SRI are designed to eliminate what are often called “sin stocks.” That way, you can invest in a mutual fund that has companies you consider ethical and still receive monetary gains.

 

 

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Pick Up a Great Habit: Saving

I frequently get questions about how to invest and build long-term wealth. If you really want the secret of wealth-building, you have to be prepared for a simple, boring, tried-and-true answer: saving. When you focus on saving, everything else falls into place. Saving isn’t sexy, trendy or glamorous—but it works!

 

 

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Money’s Only Good for Spending

We’ve got a bad track record for saving in the United States. Most people haven’t learned the habit of saving money, which keeps them from doing what’s meaningful to them and achieving financial freedom. According to a Federal Reserve Board survey, typical American households save a mere 5.3% of their income.(1)

You’re probably expecting a big, ominous warning right now, like, “If you want to save more, then you have to figure out how to spend less!” Guess what? I’m not going to cover budgets or talk about curtailing your spending. I’m about to tell you how to spend better.

 

It’s All Spending

What can you do with money? Only three things: You can spend it, you can save it, or you can give it. But if you boil it down even more, the only thing you can really do with money is spend it. 

Obviously, you can spend money right now on yourself. We all call that spending. You can save money—but wait. Saving is really just a delayed form of spending. You’re spending it later instead of spending it now. That goes for investing, too. 

 

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