Close Ad

Finance

"Six Years Ago, I Was Homeless": California Woman Wins Life-Changing $5 Million Lottery Jackpot
Finance

"Six Years Ago, I Was Homeless": California Woman Wins Life-Changing $5 Million Lottery Jackpot

You've heard the saying: "there's a light at the end of the tunnel." It's a cliché we say when someone is going through hard times, and we don't know what else to say, or worse...a cliche said to us, when we're going through hard times and someone doesn't know what else to say. Maybe it's just me, but "there's a light at the end of the tunnel", never fails to make me feel more lost. It's a frustrating reminder that I have to be patient when all else fails. I just have to be patient, I remind myself, and my situation will change. But what this cliche fails to mention, is that you can't just sit in a dark tunnel waiting for the lights to magically turn on...Light at the End of the TunnelReaching the light at the end of the tunnel requires action. It's something you have to drive towards, or according to Tim Field, who jig-sawed the saying, “There is a light at the end of the tunnel but first you’ll have to find the light switch and change the bulb before switching it on yourself.” KEEP READING: Mom Who Spent Life Savings on Daughter’s Cancer Treatment Wins $2 Million Lottery JackpotI had a very odd coping mechanism as a child. I would project myself into an imagined future, where I had overcome whatever hard situation I faced. Of course, the hard situation was something like eating my vegetables, but still, Broccoli is the 5-year-old's Kilimanjaro. I don't know where I learned this technique, but as an adult I find I still return to this coping mechanism when I'm experiencing hardship. In difficult times, I try to project myself into an imagined future where I have overcome these obstacles (I believe the kids call it manifesting). On the flip side, when I'm in moments of triumph, I instinctively reflect on what I've overcome...I think this is because human beings find meaning in hardship. Overcoming the "losses" is what give the "wins" their value. I think that's why when Lucia Forseth won a $5 Million lottery ticket, her first thought was how 6 years earlier, she never could have imagined this moment. This is because, 6 years earlier, Lucia Forseth was homeless.From Rags to Riches and Everything In BetweenLucia picked up the lucky lottery ticket at a Walmart Supercenter in Pittsburgh. According to a press release, Lucia just shut her eyes and picked one ticket at random, not thinking much of it.Later in the parking lot, she rifled under the hood of her car checking her oil. It was then she thought to take a beat and try her luck with the scratcher. She etched away at the chalky surface with a loose coin. When the winning numbers were revealed, Lucia couldn't believe her luck! She thought she had won another free scratcher ticket but she was wrong. It was so much better. Lucia had won $5 Million Dollars!6 Years Can Feel Like A Whole Lifetime...What makes Lucia's story so inspiring is that 6 years earlier she never could have imagined even having the cash to purchase a lotto ticket, much less winning a $5 Million Dollar Jackpot.Lucia proudly reflected on how far she had come from the hardship as 1 of the 554,000 houseless persons recorded in America in 2017.Over the course of the next 6 years, Lucia would make 5 million little decisions that would bring tally up to the exact moment where she held $5 Million dollars in her hand, in the parking lot of a Walmart Supercenter. In a flash, Lucia was brought right back to that familiar place she was in, 6 years earlier, when her future was so uncertain. She returned to the present moment with immeasurable gratitude, reminded of how hard the road had been and happy many steps she had taken to get there. Lucia remarks not only on her appreciation for the big lottery win but how astonished she is by how different her life is all these years later. She proudly shared with the press that aside from her big win, she is also earning her associate degree and getting married later this year.Maybe I'm too nostalgic for my own good, but I think the funny thing about being human is that we're always trying to make sense of our time here. We're always trying to connect the dots and I believe it is in these moments of reflection we find the meaning behind our experiences. In our greatest triumphs, we always return to the losses we thought we'd never overcome. It's a reflex, we can't help it. I think it's our brain's way of reminding us how resilient we are. It wants us to catalog where we've come from and just how far we've come, so we know we can do it again.Those are always the times I feel most proud of myself. When I'm flipping through my own catalogue of failures, tallying the many losses I've faced, before pasting a "win" to the pages. Because really, it's not in the scale or greatness of the "win" but rather the distance we've traveled there. Many of us won't experience homeless-- and Official Scratcher odds say almost none of us are going to win $5 million dollars, but we've all lived lifetimes between the light and dark of dusk and dawn. The universal part of being human is we've all driven miles and miles through dark tunnels, toward the light of an uncertain future--an uncertain hope. I imagine at some point when Lucia was living in uncertain circumstances, she was told there was a light at the end of the tunnel at a time when she really couldn't see it. I imagine one of her first thoughts after winning $5 Million dollars was if only I knew then what the future would bring.But the inspiring part...is Lucia didn't have to know what the future held. Instead in the tunnel she chose patience, chose action--fumbling around in the dark, looking for the switch to flip. The reassuring part is...if you're driving through the tunnel right now if you're in a hard season of your life and the future feels uncertain, I promise you clichés are clichés for a reason.There's a light coming and you're closer than you think. Until then, steady the wheel and just keep your foot on the gas.

How to Set Financial Goals and How to Reach Them
Finance

How to Set Financial Goals and How to Reach Them

Your number one financial goal in life should be, simply put, the achievement of financial wellness. We’ll discuss what we mean by financial wellness in a moment, but first, let’s say this: financial health does not mean being rich; it means being content.When you are setting financial goals, you are not planning for a future where your bank account is overflowing, you are rather setting yourself up to meet future financial obligations with ease and confidence, to weather financial emergencies, and to have an overall healthy financial life. And really, that alone is a pretty huge goal. But it need not be a daunting one.The secret to hitting that big financial – financial health, e.g. – goal is to establish multiple smaller goals and then make a plan and put in the work to hit them. And as you hit those goals, a sense of financial wellness will materialize.What Is Financial Wellness?To be clear, again, financial wellness does not mean achieving significant wealth – you can very much achieve financial wellness without amassing more money than you ever dreamt of or generating wealth such that your financial situation is one of riches. So, what do we mean by financial wellness? Think of achieving financial wellness as reaching a place in life free of financial stress and in which your financial situation is balanced and improving, even if only slowly and steadily.Financial wellness is a state of existence in which you are able to meet your current financial responsibilities like paying bills, buying groceries, and even having some discretionary cash on hand, and in which you are accounting future financial obligations, like paying down a mortgage, sending the kids to school, and planning for retirement.(Photo by Wonderlane on Unsplash)RELATED: 5 Daily Habits to Steal from Google Co-Founder Larry Page Including His Controversial Leadership StyleIf we want to trust the financial experts at the Consumer Financial Protection Bureau, then the four factors needed for financial wellness are:1. Stable daily/monthly finances (expenses vs. income/savings, e.g.)2. A financial cushion capable of absorbing a sudden expense3. A financial situation allowing for freedom of choice4. Progress toward a stable financial futureMakes sense, right? It’s really all about being comfortable now, financially speaking, even with some bumps in the road, and having a roadmap for financial comfort in the years ahead. And it’s about having enough money to have a bit of fun, too.Why Is Financial Wellness Important?If you enjoy enjoying your life, then financial wellness is important. Perhaps that sounds a bit flippant, but it’s entirely true. Without your proverbial financial house in order, you cannot truly enjoy your life, because one major aspect of your life is a constant threat to the well-being of its other areas. Without proper funds available, you lose control over so much of your life: you cannot be as selective with the hobbies you pursue, the foods you eat, the places you visit, the clothes and accessories you buy, and on it goes. And until you are in control of your finances, you cannot be as selective when it comes to major points in your life, either, such as where you live or the job you work. Financial wellness is critical to emotional wellness and really to overall wellness.So, how do we get to a state of financial wellness so our mental and spiritual wellness can be supported?Understanding financial literacy(Photo by Alexander Mils on Unsplash)Financial literacy does not ensure financial wellness, but without financial literacy, you’re unlikely to get there. Fortunately, financial literacy does not require a degree in accounting or years spent working at an investment bank or anything of the sort. Being financial literate just means you grasp the importance of saving, of planning for both short-term and long-term financial goals, you understand that avoiding or getting out of debt is imperative, and you know the value of proper budgeting. RELATED: Regular Workouts Keep Improving Your Memory and Brain Function — Here’s HowFinancial wellness improves with good financial literacy, and financial literacy improves with regular reviews of your money situation compared with your financial obligations. Achieving Financial Health Means Setting and Hitting Financial GoalsDon’t think of financial goals as having the wealth to buy a mansion or a sports car or spend three weeks a year vacationing in the Mediterranean or on Fiji. Those things would be nice and may well come in life, but they are aspirational rather than actionable financial goals, and fixating on distant financial goals like that can cause two issues: one, it may set you up for failure unnecessarily, which can damage your mental health and overall health as well based on stress and a lack of satisfaction. RELATED: Open-Mindedness: 5 Practical Steps To Open Your MindAnd two, setting overly lofty financial goals that are hard to hit may mean you don’t see all the successes you are actually having. Because in reality, financial goals should not be the big house or fast car, but the establishment of emergency funds that can float you through rough patches, retirement planning that feathers the nest for a comfort later in life, and the creation of a budget that lets you manage your personal finances properly week to week, month to month, and year to year. Financial goals are not riches, in other words – though at some point wealth may come thanks to hard work and good planning – but are simply actionable metrics that can help you achieve financial freedom and establish good and lasting financial habits.The Importance of Eliminating DebtIt’s easier said than done, of course, but you simply have to work toward getting out of debt if you’re ever going to achieve financial wellness. Whether it’s student loan debt, credit card payments, a hefty mortgage, or any other source of debt, while you owe more than you can pay, you cannot thrive financially, and let’s be honest: doing well financially is closely tied to doing well emotionally. When you can grow your finances, you can grow your sense of self-esteem and your happiness in life. It’s almost impossible to get into a positive growth mindset while you have that burden of debt on your back.Yes, you do need to plan your budget(Photo by Giorgio Trovato on Unsplash)There are a slew of reasons people avoid planning out a budget for their lives. Maybe you think they are just too hard to create. Maybe you worry you’ll never stick to one. Or maybe you don’t want to know the hard truths about your finances that will come when you calculate your budget.First, budgeting is not that hard: you don’t have to be precise to the penny to figure out about how much you spend each week on bills, gas, food, fun, and so on, and it’s not that hard to figure out how much you earn and what you have saved and invested. And guess what? You just made a budget.RELATED: What Is Groupthink? How To Avoid This Common BiasSecond, you will likely find you are already living within your means; sticking to a budget might be easier than you expect, and if it’s not, the trouble was already brewing and now you can create new ways to keep yourself in line.Third, it’s always better to know. If you have allowed in the thought that you don’t want to know your budget because it may be frightening or depressing, you are already being nibbled at by negative emotions; once you know, you may see they were needless, or you may see you were right, but then you can take action.Does Achieving Financial Wellness Mean Not Thinking About Financial Wellness?So in one way of thinking, you’ll know you have reached a true state of financial well being when thinking of your financial life doesn’t cause you even a bit of stress or worry, and may even elicit some contentment or even excitement.Perhaps the best financial wellness definition is the state of being where financed aren’t even on your mind at all.KEEP READING:Train Your Brain to Shed Distracting Habits and Concentrate Better

What Is 'The Gambler’s Fallacy' and How Can It Negatively Impact Your Mind?
Finance

What Is 'The Gambler’s Fallacy' and How Can It Negatively Impact Your Mind?

The Gambler’s Fallacy is a mistaken belief that “if an event occurr[s] more frequently than expected in the past then it’s less likely to occur in the future (and visa versa).” A simple example would be when someone flips a coin. If a coin lands on heads five times in a row, one may predict that the next flip would land on tails. This prediction is effectively based on feeling and not in reality. What’s occurred in the past does not determine the probability of what will occur in the future. It reminds me of playing rock paper scissors as a kid. For some reason, playing rock three times in a row never made sense to me. In my head, the goal was to mix it up and try out each option in order to maximize a variety of options, and therefore, my chance at winning. So why did I think this? Why do we feel that certain patterns and sequences will break arbitrarily? It’s a cognitive distortion within psychology that combines emotion and hope. One that extends well beyond gambling and seeps into every micro prediction in our daily lives. With all this laid out, my curiosity is if an individual can actually increase their odds by simply understanding the ‘gambler's fallacy’ and being aware of the randomness of chance. What Do Casino Games Have to Do with Gambler's Fallacy?(Photo by Free Walking Tour Salzburg on Unsplash)The ‘gambler’s fallacy' is ever present within the world of betting, and specifically, one of the most common casino games, roulette. Roulette exclusively relies on luck; there is no element of skill at play, like in poker or black jack. A ball revolves around a spinning wheel with thirty eight numbered pockets in either black or red. Players bet on what color, number, or what color-number pockets the ball will land on. Everyone has their own ‘strategy’ whether that be “always hit black first” or “never select even numbers.” Even with a ‘strategy’, whether you win or lose at roulette, the odds never change. RELATED: Open-Mindedness: 5 Practical Steps To Open Your MindOne of the most famous roulette incidents occurred at Monaco’s Monte Carlo Casino in 1913. The ball landed on black twenty-six times in a row and gamblers gathered around the table losing millions of dollars betting on red, assuming the streak of black had to come to an end.The Gambler's Fallacy and Sports BettingGambler’s fallacy’ is also rooted at the core of sports betting. Let’s look at this through the lens of ‘the fan.’ A fan unconditionally roots for their team and believes that if they’re on a losing streak, they are more likely to win their next match-up. My uncle Frank has been a massive Detroit Red Wings fan since I can remember. I always found it interesting that, even though he is a die hard fan, he sometimes refuses to watch match-ups out of a superstitious belief that, by actively watching, the Detroit Red Wings will somehow lose. This is based on a streak of losses the Red Wings encountered when he was actively watching versus a streak of wins when he was busy and unable to tune in. I’d love to think my uncle Frank’s participation or non-participation has a cosmic effect on the sport of hockey, but the reality is that this is the psychological effect of ‘gambler’s fallacy’ on individuals, disillusioning them to believe that patterns break and sequences follow stringent rule, i.e when he’s watching or not. RELATED: How To Handle Emotional Cheating In A RelationshipThis extends to ‘curses’ that loom over losing teams; most famously, in baseball, “The Curse of the Bambino.” When the Boston Red Sox sold baseball legend Babe Ruth to the New York Yankees, they didn’t win a world series for eighty four years (1920 -2004). Year after year, gamblers would bet on the Red Sox to win or hedge their losing streak. Though the ‘curse’ is based in superstition and feeling, it actually did affect the Vegas odds that Boston would receive. Unlike roulette, sports do have controlled elements and strategy that does influence the odds. Which players are sitting out? Is it home or away? Though, even with added ‘controlled’ elements, a huge amount of luck still remains at play, particularly with evenly matched opponents and a growing sports betting industry, which bolsts a seemingly endless variety of betting options. As sports betting grows in popularity, not only can gamblers bet on the outcomes of matches, they can also bet on the performance of individual players, and in certain games, like the super bowl for example, everything from the color of gatorade being poured on the coach at the end of the game to the songs that the musical guest will perform during the halftime show. RELATED: What Is Groupthink? How To Avoid This Common BiasThese betting possibilities all exist within the framework of ‘gambler's fallacy’ and further disillusion the individual. So this is where it gets a bit more meta, but stay with me, one can have ‘gambler’s fallacy’ about each respective bet, “if I didn’t hit the last one, I’ll hit the next,” which can become dangerous and lead to a gambling addiction. Gambler's Fallacy: How to Debias Yourself from Betting(Photo by Chris Liverani on Unsplash)So whether it be gamblers at Monte Carlo or uncle Frank in Canada, why do people feel like patterns will break? What is the reasoning for the ‘gambler’s fallacy’ and how do we overcome it? It comes down to the psychology of chance, which is “commonly viewed as a self-correcting process in which a deviation in one direction induces a deviation in the opposite direction to restore the equilibrium”. It is programmed within humans to presume that ‘what goes up must come down’ and that a pattern going one way will naturally shift the opposite. To really ensure that you avoid falling into this cognitive trap, it’s important to employ debiasing techniques. The first is to be aware of the ‘gambler’s fallacy.’ While betting, constantly remind yourself that each respective action is independent. I like to say a mantra “your odds never change” or “the dice has no memory” to continuously internalize the reality of the bet. It’s important to be extremely careful while betting and constantly check in with yourself. Simply reminding yourself that the ‘gambler’s fallacy’ is an element at play will allow you to clearly make better decisions that exist in fact and not in feeling.KEEP READING:Train Your Brain to Shed Distracting Habits and Concentrate Better

What You Need to Know to Become Financially Independent
Finance

What You Need to Know to Become Financially Independent

Achieving financial freedom is an important life milestone. While financial independence may look a bit different for everyone, the phrase generally means having enough financial means and stability to afford the lifestyle you want to live – without having to work for a living.While financial independence and retirement do share some similarities, financial independence has a few key differentiators. Unlike retirement, it's possible to reach financial dependence at any age. Additionally, while financial independence means you don't have to work in order to earn a living, those who are financially independent may still choose to pursue work that's meaningful to them. The key difference here being that the pay earned from that job is not necessary to pay bills or live off of. If you're interested in pursuing a path to financial independence, here's what you need to know in order to do so successfully. What Does It Mean to Be Financially Independent?As we defined earlier, being financially independent means, you no longer have to work to afford your living expenses. While some who are financially independent may choose to continue pursuing work that's interesting and meaningful, the wages earned from that job are not necessary.(Getty)Typically, the way financial independence is achieved is by earning money through investments, living off a savings and creating other forms of passive income – income that's earned without having to trade your time or skills – to sustain a living. Benefits of Financial IndependenceAchieving financial independence comes with plenty of benefits – the main one being the ability to spend your time the way you want to, without being tied to a work schedule or boss to report to. The work you do decide to pursue becomes more enjoyable, since the role is something you're choosing to do, not something you have to do. It also offers the freedom to quit any job or type of work you decide to take on without the stress of having another job lined up. Financial independence can positively impact your physical and mental health as well. Not being tied to full time work offers more time to take care of yourself. Additionally, not having to work to survive frees you from the constant pressures of having to earn a living. How to Become Financially IndependentThe path to financial independence does require hard work and sacrifice in the present. However, those who are able to achieve financial independence are able to reap its rewards for the remainder of their years. Here are a few tried and true strategies for achieving financial independence. Create a budgetTaking an honest look at the way you spend money can be uncomfortable – which is why many people put off doing so. However, it's an important starting point toward building financial independence. To make it less daunting, start by measuring the last three to six months of earnings and spending. Once this is laid out, evaluate where you can realistically cut costs and expenses. Building a successful budget is similar to eating a healthy, balanced diet. Being too restrictive sets us up for failure. Identifying where you could be spending less without compromising your overall quality of life is the right mindset to have toward building a budget.(Getty)Build an emergency fundFinancial independence isn't just about having enough money to live off of without having to work. It also means planning for potential emergency scenarios in which you may need access to money, such as an unexpected car repair or medical emergency. When determining how much to allot for an emergency fund, having around three to six months’ worth of living expenses is an ideal goal to aim for. Having this emergency fund not only helps with the unexpected but keeps the unexpected from derailing your road to financial freedom by not having to dip into your current earnings or other investments. Pay off debtYou can't be financially free if you're in debt. This can be a challenging step to complete for those who want to be financially independent. But with the right strategy and mindset, it's possible. When evaluating your current debt, one strategy is to start by paying off the debt with the highest interest rate first. This will mean you'll pay less on that debt over time rather than trying to pay off all debts at once. Focusing on one debt first while paying the minimum balance on the rest is another way to knock debt out more quickly. Increase your incomePursuing financial independence requires the ability to save, invest and pay off debts. In order to increase the amount of money you're earning each month; it may be time to evaluate other part time or contract work that fits with your current schedule. If you've been at your current role for quite some time, switching companies is one of the easiest ways to increase your yearly salary. (Getty)Build passive incomeWhile many passive income opportunities rely on having money to put into them initially, there are more creative ways to earn passive income than ever before thanks to the e-commerce boom. If more traditional passive income opportunities like purchasing a property to rent out are not within your current means, consider other options that require work upfront, but can then be automated. Writing an e-book that customers can pay to download and designing digital stationary for special occasions are two examples of creative ways to earn additional income without having to spend consistent time doing so. Start investingInvesting can be a confusing arena for beginners. In addition to continuing to invest in retirement plans such as a 401(k) and Roth IRA, identify low risk options for building wealth through financial firms. Putting your money in a mutual fund or exchange trade fund is one safe way to slowly grow investments overtime. If you're willing to spend money to make money, many financial advising platforms exist where you can pay a small monthly fee to work one on one with an advisor who monitors your accounts and suggests new places to invest.Financial Independence SummaryAchieving financial independence takes work and dedication in the present. But the payoff of being able to live on your own terms is a worthwhile goal to pursue. If you're planning to pursue financial independence, understand that it can take years to do and be patient with your progress. Initially it may not feel like you're making much progress – but over time these strategies will add up to yield the life you want.

Is It Time for Your Cryptocurrency Investment?
Finance

Is It Time for Your Cryptocurrency Investment?

Before we talk about you and crypto, let’s just talk about crypto itself. Because before you can even begin pondering a cryptocurrency investment, you need to have a baseline understanding of what crypto is in the first place. Because if you have ever asked “what is cryptocurrency, anyway?” you are far from alone.So here is your crash course definition of crypto: cryptocurrency is a digital asset that is not tied to or regulated by a banking system or government. They are created via cryptographic (computerized encoding of information) techniques that let you people to buy, trade, or sell these digital assets safely. Cryptocurrencies are protected thanks to blockchain technology, which creates a tamper-resistant record of crypto transactions, effectively tracking who owns what and preventing a crypto coin or token (the common names for units of crypto) from being copied.If that all sounds complicated, well… it is – let’s try a simpler definition: cryptocurrency is secure digital money. But when we say secure, we mean it’s generally secure against digital theft or counterfeiting, not that it’s necessarily a safe investment. Sure, some people have gotten rich off the stuff, but some have lost big, while still others simply use it like money for buying other things. If you’re treating crypto more like an investment than a currency, you have to know the risks.Because is there a risk that a cryptocurrency will lose its value? Of course. In fact, any type of crypto could completely collapse. But so could the value of gold, the United States Dollar, New York City real estate, or Impressionist artwork lose all value if enough people decided they simply no longer wanted those things. In that sense, cryptocurrency is just one of the latest things lots of people are willing to treat as valuable, so you might as well see the value in it as well.Is It Time for Your Cryptocurrency Investment?(Getty)Assuming you’re now convinced that cryptocurrency is a legitimate financial commodity, the question remains whether it’s a wise commodity in which to invest. Meaning for you, specifically: with more than half a dozen globally traded cryptocurrencies out there, from the original Bitcoin to the successful upstart Dogecoin to the staid Stablecoins, the viability of crypto in general is well-established.To determine if now is a good time for your own crypto buy, you need to run through a series of questions.First, you need to ask yourself the same question every wise investor asks herself or himself before investing a penny in anything: can you afford the loss? In the event a catastrophic collapse of the price of the commodity in which you invest, be it crypto or a car company or cosmetics and so on, could you keep on living the life to which you are accustomed with all that value gone?If the answer is no, the time is not now for a crypto buy! If yes, let’s keep going.Second, ask yourself why you want to invest in cryptocurrency. If the answer is merely because it seems cool or interesting or trendy, then you may be coming at this commodity from the wrong angle. Remember that railroads were cutting edge tech and big business once, whereas now rail company stocks are seen as stable but banal. And remember too that trendy does not always portend good things for the future. Anyone who watched the Dot-Com Bubble of the late 1990s or the Housing Bubble of the 2000s knows that. If you can objectively think of crypto as a commodity, though, proceed.Third question, and perhaps the most important of all: does cryptocurrency fit into your larger investment strategy? If you are hoping to make a quick lump of cash, day trading with better understood assets may be a wiser move. If you are establishing a retirement account you want to be able to count on in a few decades, looking to broadly diversified, stable ETFs and indexes might be wiser. But if you are in a sort of middle ground of investing, with an eye not only toward quick returns or a lifelong master plan, now might be the perfect time for you to get into crypto investment. For people in that boat, a sudden drop in value might not be a disaster, as they can wait out a slow build back up, whereas a sudden spike in value may lead to an unexpected – and not even necessary – but very much appreciated windfall that can be drawn out of crypto or reinvested in more.Hedging Your Bets With a Crypto Buy(Getty)All commodities see their prices go up and down, but with crypto the swings can be dramatic. In many cases, dramatic ups and downs don’t mean much if you’re holding your investment for the long haul, as the average value will hold. But as for buying crypto, it can mean a lot if you invest when prices are sky high only to see them resettle lower on average. The safe play is to practice what investors call dollar-cost averaging, according to Investopedia. Dollar-cost averaging investment strategy where you divide the total amount of money you plan to invest into smaller chunks and then make your crypto buys at intervals spread across a matter of days, weeks, or even months depending on the size of your buy and the level of attention you can dedicate to the process. By spreading out the buy, you can reduce the potential volatility of your purchase, with high prices offset by low prices. That said, if you have been slowly buying (or just watching) a cryptocurrency and you see its price tumble, consider being a bit more aggressive.When Is the Best Time to Buy Crypto?(Getty)OK, so we have established that it may never be the right time for some people to buy cryptocurrency, while for others the right time is as soon as they reach a personal comfort level with so doing. Now let’s briefly move away from you, the individual investor, and talk more broadly and objectively: when is the right time for a crypto investment?It’s Thursday. Yes, Thursday, and in the morning of that day specifically, according to the financial experts at The Motley Fool. Sure, most Crypto is traded 24/7, and as it’s a global commodity, dates and times are relative here, but when you study enough data, you’ll find the price of cryptocurrencies tends to fall on Thursday mornings, with said timeframe reckoned against America’s eastern time zone.So there you have it: the best time for your cryptocurrency buy is on a Thursday morning when you feel ready the investment and you stand ready and able for a potential loss. Or a major gain.

SMART Financial Goals Examples to Help Grow Your Wealth
Finance

SMART Financial Goals Examples to Help Grow Your Wealth

All of us have certain goals in mind that we wish to achieve. These can be long-term goals, ones that we hope to reach 20, 30 or even 40 years down the line, or short-term goals that we wish to accomplish before the year's or month's end. Financial goals can be both the hardest and most worthwhile of all the goals you could set. Why? On the one hand, planning for financial freedom in the future can mean making sacrifices in the present. However, seeing your hard work and effort pay off when those financial goals become a reality can be incredibly worthwhile.In this article, we'll define financial goals, explore why it's important to set SMART goals, and share examples of SMART financial goals to develop – and achieve – for yourself. What are financial goals?Simply put, financial goals are the touch points and milestones you wish for your money to achieve on a certain timeline. Financial goals can include building an emergency fund, saving for a down payment on a house, paying off credit card debt or student loan debt. (Kittiphan Teerawattanakul / EyeEm / Getty)Financial goals can also pertain to goals that aren't about reaching a specific dollar amount or negative debt balance but rather improving your financial situation overall. This can mean improving your financial literacy, understanding personal finance, or setting parameters for personal finances. What are SMART financial goals?If you've set personal goals before, you may be familiar with the SMART goal framework. Smart goals stand for Specific, Measurable, Achievable (or Attainable), Realistic (or Relevant and Time-Bound. Coined by George T. Doran in the early 1980s, this method was initially outlined in a paper titled "The S.M.A.R.T. Way to Write Management Goals and Objectives." The framework was meant to be used as a tool for companies to set and achieve goals. The SMART goal framework has been utilized and modified to help others achieve an array of goals – and can be especially helpful for financial goal setting. Here's a look at how to set SMART financial goals.SpecificWhat financial goal are you trying to achieve? What is your motivation? Drilling down on the specifics of your financial goal helps you realize what will need to happen for you to achieve it. When will you find the time to work on this goal? Who else needs to be involved in the process? What tasks need to happen before the goal can be reached? Having a plan starts with identifying specifics – which is why this step is crucial.MeasurableSetting a measurable financial goal makes it easy to track your progress, evaluate if you're on track, and pivot when necessary. For example, does your goal come with a certain dollar amount you're trying to hit? If so, this gives you a measurable starting point to determine progress along the way. For financial goals that are more education-based, such as improving financial literacy, consider measuring success with specific topics you wish to gain an understanding of, then plot your progress from a time perspective. AttainableSmart financial goals can be large-scale goals. But if they are not attainable, working toward it will likely feel frustrating and leave you with a sense of defeat. For a financial goal to be achievable, it needs to be attainable. Retiring with a million dollars is an attainable goal -- but if you're starting that retirement plan at 60 and wish to retire at 65, you may need to reevaluate. When setting financial goals, determine what you'll need to do for this goal to become a reality – whether that's an allotted amount of time, a level of education or a certain dollar amount saved. RealisticIs the financial goal you're setting possible to achieve? If not, what factors within your control are preventing you from hitting it? If you want to win the lottery, for example, you should know that math is not on your side. There's a slim chance of it happening, and chasing success means spending money you may never see again. If the motivation behind winning the lottery is to live without having to work again, consider setting financial goals that set you up to earn passive income to make this happen. (Kingfisher Productions / Getty)Timely Even long-term smart financial goals need to have a target end date to work toward. If saving for retirement is on your list, it can be tricky to know exactly how much you'll need to save to do so. The exact date may need to shift, but having a target end year or range of years in mind keeps your goal time-bound and helps to frame the necessary work and steps that need to take place for it to happen. When building your smart financial goal plan, try working backward from the date you want to achieve it. Then, create a framework that outlines the necessary steps and smaller measurable goals along the way.Is setting SMART Financial goals important?Setting goals is important for plenty of reasons. Having them to work toward reminds you of why you're making changes to spending habits, making you more mindful about saving money. Staying focused on the personal financial goals you have makes the pain of budgeting and saving feel more worthwhile, providing you with more motivation and insight on why you're doing so. Knowing how you want your financial future to look can also help motivate and improve happiness and overall satisfaction in various areas of your life. For example, perhaps your current job has started to feel monotonous. A recent search into salaries for your position and experience shows that you're being compensated well for your situation. Having a financial finish line to work toward can make your current job feel more fulfilling long after it's become mundane.SMART Financial goal examplesWe've defined financial goals, outlined the general framework and discussed the importance of setting goals to achieve financial success. Now, it's time to set smart financial goals of your own. If you're unsure of where to start, breaking out common financial goals by time frame can help inspire you to take the first step. Here are a few smart financial goal examples broken out by time frame.Short term financial goalsShort-term financial goals can be as short as a few months – or as long as two years. Short-term financial goals can be education-based. For example, you might be interested in getting tax advice from an expert, or learning more about investment options so you can select the right one for your financial situation. Short-term financial goals can utilize money such as an annual bonus or tax return to jumpstart. A few examples of short-term financial goals can include:Financing a home improvement projectHome improvement has become more and more essential over the past few years, with many employees working remotely. If there's a part of your home that needs an upgrade, get an estimate on what it would cost to accomplish, then build out a plan using the SMART goal framework.Building an emergency fundNo one likes to think about what may happen in the event of an emergency. While we can't predict or prevent emergencies from happening, having funds that are easily accessible can give us more peace of mind for the future. To calculate how much you'll need to save for this goal, calculate what six months of expenses look like for you and your family. Then, work on putting a manageable amount away each month to achieve it.Saving for a vacation/event(Noel Hendrickson / Getty)Whether it's a milestone birthday party, wedding or much-needed vacation, putting more money away for your financial journey (or to celebrate and enjoy life) are some of the most fun financial goals to reach. Working backward from your target date, determine how much you'll need to put aside each month to reach your financial goal – then see where you can save or cut back to make it happen.Mid-term SMART Financial goalsMid-term financial goals should be achievable in around 2-5 years. Unlike short-term goals, these financial goals require more planning, resources and time to reach. While short-term financial goal funds can be kept in places that are easily accessible (save money using a high-yield savings account for your emergency fund), a more optimal strategy for mid-term financial goal funds might be a Certificate of Deposit or CD account – which has a higher interest return rate but requires the funds to remain in the account for an allotted period. A few mid-term smart financial goals include:Purchasing a car(Carol Yepes / Getty)Leasing options and car payment plans make vehicles more accessible -- but this often comes with other headaches and hidden fees. Saving up to purchase a car in full is a worthy mid-term goal for those who wish freedom from monthly payments and additional expenses. Saving for a down payment on a homeThis is a worthy financial goal in any housing market but particularly useful today. There's no better time to start saving up for a down payment on a home than right now. Using the SMART goal framework, determine where you envision purchasing a home, get specific on the type of home you're working toward, and craft a realistic, attainable plan you can measure to achieve it.Long-term SMART Financial goalsLong-term financial goals are the hardest to achieve – but with dedication and proper planning, they can end up being the most rewarding. These financial goals are the ones that require five years or more to achieve. Options for where you allocate funds for long-term financial goals are plentiful – investing in Roth IRAs, a 401k, or even an investment portfolio can help grow your money without requiring any effort on your part. Some long-term financial goals to consider are:Saving for retirement(Halfpoint Images / Getty)Investing for retirement is just as important as saving is. For this type of financial goal, it can be beneficial to work with a financial advisor to determine the best way to grow your money over time. Paying off a mortgageCompleting your mortgage payments sooner than later frees up funds to use however you'd like – which makes this long-term financial goal a powerful one. Consider ways to pay more than the monthly allotment when possible and work back from your goal deadline to determine how you'll measure success along the way.SummarySetting smart goals is important for our overall happiness and securing and preparing for the future. Financial goals can be difficult to set and stick to. But if you work within the smart goal format, achieving money goals becomes more attainable and will feel less like a burden. Set time aside to assess your financial situation and set your sights on what you want to achieve for your short-term, mid-term and long-term financial goals.

Socially Responsible Investing: A Complete Guide
Finance

Socially Responsible Investing: A Complete Guide

Everyone knows about stocks, bonds, currency exchanges and mutual funds. But socially responsible investing (SRI) is not just about financial performance. Instead, SRI has a twin set of goals. One is financial gain. And the other? Social impact, also known as doing good.Doing good surely sounds like something you want a piece of, but may also sound like an easy way to complicate traditional investing, which is already complex enough. But once you realize it’s more of a new way of thinking than new way of investing, you’ll be sold. Or you’ll be buying, more accurately.Making money doing goodYou already practice social responsibility, and likely in myriad ways. You vote for elected officials whose values mirror yours and whose integrity you trust. You don’t shop at stores or dine at restaurants managed by companies known for practices of which you disapprove, be they matters social, ecological, ethical, and beyond. You follow laws that help maintain the social fabric, from stopping at red lights to respecting private property to using the crosswalk. You don’t litter. And on it goes.But when it comes to investing, you may accidentally be helping prop up organizations whose values, integrity, and ethics are anything like yours simply because you don’t know where all of your money is invested. It’s entirely possible that your money, if it’s in a 401(k), an exchange traded fund (or ETF) managed by third party investment management firms, may well be tied up with just the sort of businesses and investment strategies you would never patronize directly. they may even be indirectly helping support politicians whose politics you loathe via corporate donations.The solution isn’t to ditch investing entirely and hoard your cash in a mattress, nor do you have to sacrifice sound investment in the name of sustainable and responsible investing practices. While bringing values and ethics into play with impact investing does add a layer to the investment process, it need not hamper your financial success.In other words, you can commit to socially responsible investing and still be focused on all the standard matters of personal finance, from a focus on growing your nest egg to figuring out how to save money when possible to making an impact on others based on where you put your money.And you can get started just as soon as you have a better understanding of socially responsible investment practices. After all, there are registered investment companies that provide socially responsible mutual funds, community investing and sustainable investing strategies, and plenty more that will help you do good things with your money. What are socially responsible investments?Some say that socially responsible investing is not activism. Furthermore, they would say that SRI is not to be confused with “activist investing,” which is a whole other thing, and one rarely associated with social responsibility at that.However, from another perspective, socially responsible investing and activism can go hand-in-hand, and ultimately all actions are political. Putting investments in ethically, environmentally, trusted companies can indeed represent a very progressive or political act.The popularity of socially responsible investing has grown in recent years, and while socially responsible investments trends often align with political and social mores of the day, the move toward SRI is steady and lasting – note the numbers of the VFTAX and NEXTX funds below as evidence. And in some cases, SRI is not even about growing one’s own wealth, but instead is an investment in a greater community. In these cases, the moves represent a strategy where the return on the investment is calculated not in dollars, but in betterment of the human condition in a given population.And that’s pretty powerful stuff, when you think about it. Community investing institutions have great potential. Sustainable investing: An SRI definitionWhile of course it’s always best to have a plethora of information when the topic at hand is an important one – and being as we are talking about your money and about social responsibility, this here is an important one – it can be helpful to have a concise definition of a term to make sure everyone is on the same page.So going forward, even as we broaden and deepen our understanding of socially responsible investing and get into some of the specifics of the practice, let us use this as our shorthand definition of socially responsible investing:SRI refers to any financial investment considered socially responsible when the nature of the business or fund into which the money goes is fully understood.Think of it like this: you know which friends you can trust with a secret (or a loan). You know which you probably can’t. And you know you’re not quite sure of others. Guess which group represents the socially responsible organization. Correct, only the first.The types of investments to avoid when going the SRI route We are not going to name names here – you can do that on your own just fine, no doubt – but we are going to highlight a number of the types of companies most people interested in socially responsible investing are most interested in avoiding.Firearms and fossil fuels(spooh / Getty)Some of these organizations are ones it’s obvious you’ll want to avoid, such as a company that makes firearms, a fossil fuels extractor, a clothing or textile brand known for exploitative labor practices, a petrochemical company, or any brand known to be affiliated with political, religious, or other types of institutions to whom you are personally opposed. (Or at least not looking to actively support.)Other times, it can be harder to glean when a company does not fit the SRI criteria. Maybe they seem like a decent enough lot, but when you look deeper, you’ll see their supply chain is a serious cause of greenhouse gas emissions. Or that they lobby for causes that are anathema to your worldview. Or that they have a reputation for poor treatment of employees. All of these and many more are more than good enough reasons to put your money elsewhere.Also, don’t think simply not proactively buying shares of a gun manufacturer, an oil giant, a cheap clothing provider, or a chemical company guarantees that your portfolio is squeaky clean from an ethics standpoint: if you are already invested in many single stocks and/or in funds, you may be holding shares that run against your moral code. You may well have some divesting to do, in other words. The good news is that you turn those shares into cash as you say goodbye to those less than “good” investments. Or even better than cash, you can parlay the money you make from selling unwanted stocks into sustainable fundsWill SRI hurt your overall portfolio?It doesn’t have to. At all. But it will require more work, as you both have to make smart moves and righteous moves, so to speak. And you are indeed cutting a lot of potential sources of revenue out of your purview, so you’ll need to pick up some slack.If you’re worried about what could be fairly called “investment FOMO,” FOMO of course an acronym for “fear of missing out,” the best way to allay your fears is to increase your information. Go right ahead and follow all those stocks and funds in which you have made the moral choice not to invest – chances are good that you will see their numbers rise and fall in much the same patterns as the values of the socially responsible places in which you invest. The rising (and falling) tide of the market affects all ships, if you’ll allow the metaphor, so you may as well have the moral high ground.And if you take comfort in numbers, here’s one to note: $17.1 trillion. With a T, trillion – that’s how much money is invested in socially responsible assets in the United States alone, according to a report from The Forum for Sustainable and Responsible Investment. And that figure represents a five trillion dollar increase in SRI assets in America when compared to a report issued just a few years earlier, showing this is hardly a bubble or passing trend, but rather an ongoing and ascendent model for prudent and ethical investing. Understanding socially responsible investing on a personal levelAs with all investment, the first thing you have to understand about SRI is why you are doing it. That may sound simple but it’s anything but, because it means understanding your personal financial goals, both short- and long term, and that alone can be a Herculean task. You need to account for the expenses you face now, that you will incur in the next few years (a new car or a down payment on a house, perhaps?), likely expenses in the next few decades (tuition costs for the kids or cash to start a business, maybe), and you need to think about how, where, and when you want to retire. And that’s not to mention any legacy planning.Assess your values Then you need to honestly assess your own values. Do you want to support causes affiliated with religion, or to eschew them? Are you a diehard supporter of social justice? Are you in favor of a more conservative approach that maintains the status quo? Do you care deeply about the environment? Are you a supporter of unregulated, free market capitalism above all else?There are no right or wrong answers from an objective viewpoint, there are only rights and wrongs as they pertain to your own beliefs and values. Once you have your house in order, morally and ethically speaking, then you can go out looking for companies and funds that line up.Or better yet, you can sign up with a group of investment professionals who will manage your socially responsible investing for you.Socially responsible investing examplesOne way to practice socially responsible investing is to hand-pick stocks of companies you know to be aligned with your values. If you care deeply about the fight against deadly diseases that unfairly impact the underprivileged, you may want to invest in a company like Gilead Sciences, for example, as they are widely respected for their commitment to improving global health. (Mohammed Hamoud / Contributor / Getty)If you care deeply about cleaner, greener energy, consider buying shares of a clean energy company like First Solar, a company with sustainability and social responsibility baked into its business model. Or you can take a longer approach and buy bonds that will help prop up a community you care about.And on it goes. The problem for the individual investor using this approach is that to create a truly successful, dynamic socially responsible investment portfolio, you may well need to make doing so something of a full-time job. Or at least a busy part-time gig.So instead, consider signing on with an investment advisor or manager willing to take your direction to only invest ethically. Responsible investors will factor in your values while striving to put your money where it can do well for you financially, as of course they have a vested interest in its performance as well – the better their investment decisions do for you, the better those investment dollars do for them, too.ESG funds: What they are, what they doThree key issues often on the minds of those interested in socially responsible investing are matters environmental, social, and of governance, often referred to as ESG investing for short. Those are big topics. Colossal, really – indeed they are in the minds of many the most pressing issues of our day, given the slow but severe damage climate change is having on the planet, the strife that has ripped through civil society in recent years in the wake of police violence, protests, and the push for rights and representation, and then of course the divisiveness of the present political climate.Frankly, it can be overwhelming to plunge into matters of the environment, the civil and social discourse (or lack thereof), and the governance of our nation even without the added lens of financial matters. Which is why it’s good news that you can turn to experts who devote all of their professional time to ESG investing. These fiduciaries do their best to increase the value of your investments while at the same time ensuring that your money is tied to causes that you value.ESG funds are simply specifically established to bring together myriad socially responsible organizations and financial instruments. An SRI mutual fund or an SRI exchange-traded fund will work just the same as any other fund, it has simply been vetted and created with a unique perspective. A few SRI fund examples include the Vanguard FTSE Social Index Fund, or VFTAX, and the Shelton Green Alpha Fund, which is known as NEXTX on the stock ticker. For reference, the Vanguard VFTAX fund has nearly doubled in value in the past few years, while the Shelton Green Alpha Fund has more than tripled in less than half a decade.SRI can give you powerInvesting in socially responsible companies and funds is a good thing because it does good things, and because it can grow your wealth. But that’s not all SRI can do for you.Money talks, we all know that. And when enough people put enough money in the same place or places, it can speak volumes and be loud enough that the powers that be are forced to listen, respond, and adapt. By investing in companies committed to producing green energy, to the manufacture of sustainable products, to ethical treatment of workers, to transparency in all aspects of their operations, to ethical corporate governance, you help bolster those companies already doing the right things, and you offer proof of concept that may help convince other organizations to amend their practices, seeing that the responsible approach is working elsewhere.Shareholder engagement can be the best way to direct the moral compass of a company, so get engaged, both by investing as well as by voting and making your voice heard, be that via calls or comments or by spreading the word. And also don’t forget that another power play is dumping the shares of companies or funds that you think come up short in terms of social responsibility.Final thoughtsLet’s be crystal clear here: if your only goal for investing is to make money for yourself, then socially responsible investing is probably not the right avenue for you. But if you’re the kind of person who will pay a little extra for locally sourced this, ethically produced that, or fair-trade certified the other thing, then chances are good that SRI is the right move for your portfolio and your soul. And for the world at large, too, of course, to which you and that soul of yours are connected.

ESG Investing: What You Need to Know
Finance

ESG Investing: What You Need to Know

ESG investing helps you build a more ethical portfolio. The letters ESG stand for environmental, social and governance, and ESG investing is a form of socially responsible investment that aligns with your values. According to financial site NerdWallet, socially responsible investing has taken the world by storm, “and providers and investors alike are scrambling to jump aboard the sustainable bandwagon.” Companies are often vocal, and even outspoken, about where their alliances stand when it comes to certain causes. For example, a factory may only use eco-friendly, solar-powered machinery, which may appeal to a certain investor who supports green causes. If the earth’s carbon footprint is important to you, this is a company you may personally want to support. Against animal testing? Perhaps a cosmetics brand that does not test any ingredients on animals the company is for you. If you decide that socially responsible investments are something you’re interested in, you can always research and verify that the company’s values align with yours. Even though there are many ways to make extra money, for some investors, a lack of connection on this level can be a dealbreaker.How to get started with socially responsible investingIf you’re new to ESG investments, don’t panic. Yes, launching a portfolio and then researching companies that are as like-minded as you are can be daunting, but only if you let it! Governance investing, and researching the overlap between a company’s ESG criteria and your own values can actually be fun. NerdWallet outlines some helpful ways to get started. And, of course, consulting with a finance expert, stockbroker, and/or accountant is a fantastic idea too.Explore financial markets and ESG companies that resonate with youAccording to MotleyFool, the financial performance of ESG stocks has recently drawn investor attention, and they want more. “During the market turbulence related to the COVID-19 pandemic, many companies with strong ESG track records showed lower volatility than their non-ESG counterparts,” explains the finance site.Additionally, to many esg investors, that performance validated ESG investing and its premise -- that good corporate behavior results in better business. MotleyFool advises you to “make your portfolio reflect your best vision for our future. Always be thinking ahead. Be optimistic. Think about the world that you want to create, because sure enough your dollars and mine, our capital, is helping shape the world.”Michael Sikorsky, CEO of Copia Wealth Studios, says: “Most important, don’t look at the dollars generated, look at your return in terms of percentage.” For example, imagine you invest $100 dollars, and it rises to $120 dollars. “That is only $20 dollars for lunch. Does not seem worth it, does it? However, that is a 20% return, which is amazing.”Additional contextIf you are unsure or new to investing, advises Sikorsky, start with a diversification strategy. “For example: Pick a broad-based ETF vs. say 2 to 3 company names.”Sikorsky also says to track your investing in a google sheet, and journal why you are buying, and journal why would you sell before you even buy? “Document your time horizon for this investment, etc. This stops narrative shifting and grows your skills as an investor.”He adds: “Decide what you are benchmarking against. Always have a benchmark to compare yourself to. Everyone needs a yardstick in order to grow taller.”Read up on companies--thoroughlyOnce you’re ready to create an ESG-style investment portfolio, it’s time to deep dive into the company. Put your research and investigative cap on. Look up a company’s sustainability initiatives and check to see if a company's values are “in alignment with your moral compass,” stresses NerdWallet. (PeopleImages / Getty)For example, if a large company donates some amount of money every month to breast cancer research, and that appeals to you as a breast cancer survivor, this may be a brand you want to throw your hard-earned money behind.Open a brokerage accountYou cannot start ESG investing until you set up a brokerage account, such as TD Ameritrade, Robinhood, E-Trade Financial, and so forth.A brokerage account helps you buy and sell securities, explains NerdWallet, like stocks, bonds and mutual funds. Currency is transferred in and out of brokerage accounts—similar to a bank account--but unlike banks, brokerage accounts give you stock market access. (And FYI: brokerage accounts are also referred to as taxable accounts, because investment income within a brokerage account is taxed as a capital gain.)Again, this can be overwhelming so keep this in mind: some brokerages offer resources to help you sift through various ESG (or sustainable/socially responsible/ethical) investments. Building an investment portfolio takes time, stresses NerdWallet, especially when you are trying to find investments that align with a particular framework, such as ESG. Do as much research as you can before financially supporting a company that catches your eyes.Consider working with a Robo-advisorHelp is on the way if you need it in the form of Robo-advisors; digital advisors who build and manage investment portfolios. To be upfront, they’re often times less expensive than in-person advisors. (Not that an in-person advisor isn’t quite resourceful.) Today, many robo-advisors are allowing investors to opt into a sustainable portfolio for no additional charge. Just make sure the Robo-advisor knows which causes and missions align with your values when helping you lock down your socially responsible portfolio.Sustainable investing: Thinking about your valuesWhat if you have too many values, too many causes that are personally important to you? You can’t invest in nineteen companies at once… (well, you can if you have the finances, but that’s still a lot.)Says NerdWallet: “ESG has some pretty clear boundaries, especially in comparison to “ethical investing” or “socially responsible investing,” but that doesn’t mean it fits perfectly with your beliefs.”Never forget that values differ from individual to individual, so really think about scenarios and viewpoints most important to you, and see if any fall outside of what “ESG” entails.For example, Muslim investors may want to ensure that their investments comply with Islamic law. Or, let’s say a corporation vocally supports Planned Parenthood but you’re staunchly pro-life. This may not be the company for you to financially back.Also, if you’re willing to make an exception, that’s OK as well. Do what feels right, and what you can financially juggle. As they say, put your money where your mouth is, so if you’re really passionate about something such as the planet’s carbon footprint, look into sustainable investing that aligns with your passion for the environment.How does ESG investing work? Congrats! You’ve set up your brokerage account and you know what industries (or solo companies) you want to support with your investment strategy and investment dollars. Here are the next steps.First, read reviews from independent research firms (such as Morningstar, as recommended by NerdWallet) which can show you how a company or fund “scores” in terms of ESG investing factors. This will help you decide whether you’d like to invest in them.If a certain company catches your eyes, and you think it has growth potential, consider buying its stock. Check and see if that company has an impact report, which features any sustainable or cultural initiatives the company has implemented over the years. Curious how a company scores in terms of its work environment? Popular business sites such as Glassdoor can give you “scoop” on the company’s inner working and internal vibe and culture.Adding mutual funds The number of ESG funds has surged in recent years, says Morningstar Data in a 2020 study. You’re not the only one interested! This study explained there were 303 open-end and exchange-traded funds in 2019, which was up from 270 in 2018. “Some of these funds focus on a particular issue, such as green energy, making it easy to personalize your portfolio’s area of impact,” explains NerdWallet. So, ask your broker if they offer a mutual fund screening tool. With it, you can compare different funds to further explore their ESG ratings. Want the nitty gritty? For additional details of a particular fund, says NerdWallet, such as what companies the fund invests in, you’ll want to look through its prospectus. “This document should be available on your online broker’s website, and will include other helpful information like the fund’s expense ratio.” (Defined as annual fees taken as a percentage of an investment.) A mutual fund calendar can help you figure out how much you’d pay to own a specific fund.How ESG’s are scoredThey’re calculated by various companies that use a variety of methodologies. Most providers outline specific ESG indicators. Additionally, says NerdWallet, the way providers acquire their data differs as well. “For example, MSCI ESG Research, one of the largest independent providers of ESG ratings, uses data that is collected from both company disclosures and government, academic and NGO databases.” (JOHANNES EISELE / Contributor / Getty)Plus, the finance site points out, The Dow Jones Sustainability Index “uses an industry-specific questionnaire to gather self-reported data from participating companies.” CFA Institute plays a crucial role in ESP analysis; they’re a leader in environmental, social, and governance (ESG) factors in financial analysis. Outlining ESG metricsToday, investors incorporate ESG data into the investment process to gain a fuller understanding of the companies in which they invest. As outlined on the CFA Institute website, investors are” increasingly applying these non-financial factors as part of their analysis process to identify material risks and growth opportunities.”ESG metrics are not usually part of mandatory financial reporting, states CFA Institute, though companies are more and more often disclosing them in their annual report or in a standalone sustainability report. They know potential investors want to see these stats.“Numerous institutions, such as the Sustainability Accounting Standards Board (SASB), the Global Reporting Initiative (GRI), and the Task Force on Climate-related Financial Disclosures (TCFD) are working to form standards and define materiality to facilitate incorporation of these factors into the investment process,” says CFA Institute. As the demand for ESG investing increases, on the flip side there are specific key trends emerging. The coronavirus pandemic has affected investing as a whole, and, says CFA Institute, “intensified discussions about the interconnectedness of sustainability and the financial system.” In response, CFA Institute is producing valuable research, collaborating with experts and practitioners for discussion, “and setting standards to enable the mainstreaming of ESG investing.”Conviction and diversificationThere really is a conviction and diversification framework to consider when investing, says Sikorsky. “When it comes to diversification, you have a belief in the ‘sector’ or ‘approach’ but you don’t have belief in any few names of companies. This has the trend for lower returns and hence a lower chance of loss of capital. “Adds Sikorsky: “You have belief in a few names of companies, so you’re willing to be concentrated amongst them. This has the trend for higher returns and hence, the higher chance of loss of capital.”It’s very possible to invest and make money while also being ethical. “Investing can go both up and down,” says Sikorsky. “But look at this: S&P 500 annual historical returns since 1926 is 8 percent. Let’s take a concrete example and look at an ETF under the symbol GRID. GRID is First Trust Nasdaq Clean Edge Smart GRID Infrastructure Index.”You can also look up its ESG score and factors using this. “Then you can break down many factors from each of the classes of ESG.”Analyzing the ESG scoreRemember: anyone can buy an ESG fund with low amounts of money and feel good they are investing sustainably.According to Craig Kirsner from Stuart Estate Planning Wealth Advisors, a company's ESG score is, simply put, a numerical measure of how it is perceived to be performing on a wide range of environmental, social and governance (ESG) topics. One way to learn the ESG number is by going to MSCI's website.Or you can subscribe to Morningstar Direct ESG service. Fidelity, says Kirsner, also has a nice page on ESG investing here. The major benefits of ESG investing“You get to be part of the change you want to see in the world,” says Sikorsky, referring to his fave quote: “Never underestimate the impact of a small act.” --Tory Burch.And, adds Sikorsky, according to a Morgan Stanley Institute for Sustainable Investing report: In a study of more than 11,000 mutual funds, they found there is no financial trade-off in the returns of sustainable funds compared to traditional funds, and they demonstrate lower downside risk.“Strong statistical evidence that sustainable funds are more stable.” Stresses Sikorsky: “In summary, impact investing is good for your wallet as well.”Today, adds Kirsner, more people want to invest responsibly, so some of the world's largest companies are acknowledging the importance of issues such as climate change, human rights and social inequality. Take a chance and invest and watch your portfolio grow— while simultaneously investing in your passion and conscience. Need more inspiration? Take a look at these money quotes, they may just change your perspective on making money!

Drake Pays Off Man's Debt And Doubles His Savings To Encourage Him To Reach His Goals
Finance

Drake Pays Off Man's Debt And Doubles His Savings To Encourage Him To Reach His Goals

One individual went from paying bills to stacking them thanks to rapper Drake. A 2021 resolution2020 was a bummer, but Toronto-based rapper BucksInDaCut (Real name Romello) has kicked off the new year with a bang."I'm having a good start to 2021 fam!"- BucksInDaCutPosting a video on Instagram, he continued: "Remember my 2020 New Year's Resolution was to have 2020s all 2020? 2021, there's no more poor or broke, fam. I had 500 dollars to start the year, let's count up"Counting what he's made so far, he's already 'counted up' to $1,300 to start the year. The positive post is picked up by 6ixbuzztv and went viral.Drizzy drops inThe viral buzz got much louder when a noteworthy user chimed in.Yo what's this mans PayPal I'm doubling that for my guy Bucks B- @Champagnepapi Enter @champagnepapi, better known as rap superstar Drake, who offered to double the sum in Bucks' bank account. For anyone doubting his intentions, Bucks recorded another video to show that Drake not only came through with his offer, but he also doubled it by paying off his student debt."I gotta big up Drizzy, the one and only Drake, fam, he's a man of his word, fam, he doubled my money, and on top of that, fam? I told him about my OSAP and he cleared my debts."Oh, and he also gave him a follow on the 'gram.Support others' successThis isn't Drake's first random act of kindness. He famously used most of the budget for his "God's Plan" video on people's groceries, students and donations to a woman's shelter.And now, one artist's future is looking a whole lot brighter."@champagnepapi Is The Realest ! I Can’t Thank Him Enough…. A Real Role Model"- BucksInDaCut We don't need Drake's cash or clout to fuel someone's dreams. An encouraging word, comment, share, like or follow is priceless in supporting someone's pursuit. Keep that in mind the next time you see someone sharing their goals.More inspiring celebrities:Why We Need To Talk About Keanu Reeves’ Girlfriend Alexandra GrantHow Ian Somerhalder and Nikki Reed Went From Friendship To LoveThis Is Why Drake Took 3 Years To Embrace FatherhoodHow Hailey Baldwin Dealt With Being In A Love Triangle Involving Selena Gomez

America's Best Boss Dan Price Is Speaking Out Against Stock Market Injustices
Entrepreneurs

America's Best Boss Dan Price Is Speaking Out Against Stock Market Injustices

The stock market has been in the news more than ever over the past few weeks, as less successful stocks have been incredibly, well, successful. And Dan Price, the boss who went viral for giving a minimum yearly salary of $70K to all his employees, is standing up for the greater good of the collective once again. Recent developments have led to stock market novices beating rich stockholders using the same tricks that they themselves have long used to make money.What is really going onMany started to question what the stock market actually means, and how valid its projections are, if it can so easily be manipulated. And it turns out, that’s precisely the point, according to Dan Price, the CEO of Gravity Payments. He explained why there’s actually no link between the stock market and reality in a Twitter thread that went viral.In fact, at its essence, believes Price, it’s a system that allows the rich to exploit the poor.Prince mentions examples such as airlines spending 96% of free cash flow on stock buybacks for a decade, then cutting 90,000 jobs, but then getting a $50 billion bailout. He brought up other companies too that laid off or furloughed employees, only to give their CEOs giant bonuses.He points out: “On Jan. 6, when the mob stormed the Capitol, the stock market went up 250 points to a new record, handing the richest 1% an extra $300 billion. Also that day, a new report showed employment dropped for the first time since April and a then-record 3,900 people died of covid.”A great divideSo does he have a point? Apparently, yes. Sam from the Financial Samurai blog was interviewed by Bored Panda and explained that the stock market created a giant divide between the rich and the average-income earners.“CEOs have no magical powers. Yes, they have the operational experience to run big companies. However, they are often just spokespeople and ambassadors of the firm. One person cannot make that big a difference in a large organization. If Tim Cook from Apple steps down, the company will be fine. Another overpaid CEO will take his place,”“The reason why CEOs can get paid so much is due to the direct correlation of the size of the company. When a company is worth hundreds of billions of dollars, it’s easier to pay a CEO tens of millions of dollars a year, which comprised mostly of stock options." “At the end of the day, the CEO and the Board of Directors’ goal is to provide as much value and returns as possible for its shareholders. And if that means firing thousands of employees, then that is what they will do. It is a sad reality of extreme capitalism.”Dan Price had endless examples of companies that mess with their employees’ livelihoods and cut jobs but somehow pay their CEOs huge bonuses. All of this enables the rich getting richer.An example of great leadershipDan went viral for cutting his own pay so that his employees could make more – but unfortunately, many aren’t like him. Business is business and, at the end of the day, those leaders often worry about the people on top before anyone else. That isn’t likely to change any time soon.But Dan’s twitter thread – and own history of being a great boss – shows that we can decide to change, within our own companies and lives – and set an example. Maybe more bosses can be like Dan Price and understand that it’s the people – the ones who keep businesses going – that need to be appreciated and taken care of. More uplifting news: Millionaire CEO Gets Wake-Up Call, Gives $70,000 Minimum Wage To All EmployeesThis Boss Just Gave $10 Million in Holiday Bonuses to His 198 EmployeesMacKenzie Bezos Pledges to Give Away Half of Her $37 Billion FortuneChiefs Player Who Abandoned His Team Is The Real Winner Of Super Bowl LV