From Guest Blogger Olivia Jones: Six Ways to Green Your Finances
Many people are not aware that each swipe of the credit card and receipt coming out of the ATM has an impact on the environment. They fail to realize that going green is much more than a trendy move. It makes quite a bit of sense from a financial standpoint as well. Hence, it might be wise to ditch bad habits like impulse buying and overspending in general. There are many simple steps to make your finances more sustainable and healthy. They do not even take a whole lot of your time and energy. So, here is how to get the financial house in order and save resources and time, as well as Mother Nature.
Keep spending in check
Frugality and sustainability go hand in hand. A lifestyle that is more eco-friendly is also the one that benefits your budget. Therefore, mind your spending habits. Save more and waste less. Kick off the endeavor by creating a budget and sticking to it. Keep track of your expenses in all major areas like food, lodging, transportation, clothes, and entertainment. Evaluate how your shopping impacts the environment. Be a conscious consumer. For instance, notice that online shopping is not really the greenest options. E-tail giants like Amazon use tons of packaging for delivery service.
Smart purchasing
There are few other rules you should try to uphold. Most importantly, know what you need and avoid shopping sprees. Before you invest in a new thing, see if you can repurpose an old one. Likewise, you should recycle as much as possible around the household. Bear in mind that around one-quarter of bought food gets wasted in an average home. Do not make this mistake: come up with weekly plans and shopping lists. Furthermore, donate and give away excess stuff you no longer need. Purchase energy-efficient appliances and smart devices. Do not hesitate to buy used – visit local yard sales and consignment stores.
Next, it is time to make your investment portfolio greener. Namely, ponder stocks and mutual funds that back green companies, as they are a socially and environmentally responsible investment. It is also likely to pay off over a long haul because businesses that operate sustainably tend to inspire more consumer trust and loyalty. Moreover, funds that perform social, environmental, and governance analysis outperform those that do not. Thus, consider supporting worthy causes and initiatives in the areas of renewable sources, sustainable agriculture, green building, etc.
Affiliate credit card or donation program
In case you do not have an investment fund and ambitions, do not fret. Seek charities like The Sierra Club that offer branded credit cards. Basically, they donate a fraction of your proceedings to the causes they support. That way, you contribute to the environmental efforts without going out your way. An alternative would be to get a good reward card and make donations directly. Also, it is possible to take advantage of the services in the league of Amazon Smile. They allow you to choose a charity and designate every order you place to be donated to it.
Build a solvent future
Sustainability is right at the core of global green efforts, and it should be the heart and soul of your financial planning as well. You might be able to support your lifestyle today, but what about a few decades down the road? Well, if you are prepared to take a long view, you can preserve your financial independence. Start creating a retirement fund well-ahead of time and anticipate how your income and budget are going to change. Note that you can take an age pension income test to assess your financial situation based on earnings and plan investments like energy-efficient retirement homes.
Move away from paper
Finally, do away with snail mail statements and other documents printed on virgin paper. Most banks these days allow customers to opt out of paper bills and sign up for electronic statements. They can easily be backed up, unlike documents you receive via regular mail. To make extra steps towards paperless finances, reject receipts at ATMs and embrace online banking and payments. You have various apps that enable you to pay bills with your smartphone. They are a win-win, a sound strategy both from a financial and environmental point of view.
Green seeds of change
It takes just a bit of planning and rethinking of your lifestyle to reduce your carbon footprint. In fact, you can easily make a positive change and green your finances. There is really no need to have trees chopped in order to receive monthly bank statements. Go paperless and use apps to conduct payments. Invest in green stocks and adopt frugal shopping habits. Be more environmentally conscious and improve your bottom line. You stand to gain so much and, ultimately, have a chance to sow the seeds of the better and greener future for everyone.
Olivia is psychologist and entrepreneur from Brisbane. Mother of two beautiful children and proud owner of two silly boxer dogs. She is passionate writer, a traveler and conscious consumer, seeking healthy and sustainable products to incorporate into the lives of her family. Her motto is “Be the change you want to see in the world”.
