Money holds great power over our society, as each dollar can help the growth of a certain industry. Sometimes, this could be a good thing. Other times, the cash can end up in the wrong hands or be spent needlessly. This can potentially have a negative impact on the society and environment.
You probably already know all the ways in which you can earn extra – you likely already invest and monetize content creation or other skills. But it doesn’t matter how much money you own, you should spend it wisely if you want to make an impact. In this article, you will learn how to use your revenue to leave a positive footprint behind you.
Consider Charitable Giving
Donating to charity is perhaps one of the best ways for you to make a positive impact with your money. You don’t need to be a billionaire to do so – even a small regular donation can have a significant effect. Choose a cause that you believe in every month, and offer as much as you can afford without negatively affecting your lifestyle.
If donating bigger sums is not yet a realistic option for you, consider going for smaller increments. For instance, some companies allow you to round up your payments to the nearest dollar. The change that is left will then be directed towards local charities, where it will be put toward a good cause. Don’t be discouraged from giving to charity because you can’t afford major transactions – remember that a little goes a long way.
Choose Your Bank Carefully
Nowadays, money is rarely handled in cash – most of it goes through a bank first. Whether it’s investment capital, passive income, or your monthly salary, chances are that it will go into your checking account, then into your savings or the ATM. We don’t even doubt that this is a natural action, and in some places, you are automatically assigned a bank the moment you start working.
An average of 59 percent of people aged 18 to 24 will likely choose the bank that their parents did, which they also probably started using decades ago following the same principle. The problem is that while some banks may be completely transparent with what they do with your money, others keep everything hidden. For all you know, they still give out countless loans to support major fossil fuel processes.
If you do not know what the bank does with your revenue, try asking them about their lending and investment policy. If they do not want to answer any of your inquiries or offer vague and dismissive answers, you probably caught them with the cat in the bag. Luckily for you, there are plenty of banks that choose not to invest in destructive industries, and your income may be better kept with them.
Go for Impact Investing
There are numerous options when it comes to sustainable investments, but impact investing is likely the best option to keep the economy circular. With this type of investment, you don’t just screen the negatives of a company out but actively look for businesses that offer environmental and social benefits.
This type of investment sees money as a force to make a positive change. You can invest in a variety of causes, such as social housing, renewable energy, and more. Go for the ones that are trying to make a change in the world for good. It also offers you an opportunity for great earnings in the long term, especially as the demand for impact investing is getting higher and higher.
Opt for Conscious Spending
When you have cash – no matter how much – one thing will likely happen to at least a good part of it: you’ll spend it. And let’s face it – this cannot be avoided! You need to pay your bills, buy your groceries, or purchase things to make your life more comfortable. Still, there is another activity that your resources often fall victim to, and we’re talking here about impulse spending.
In 2022, the average consumer spent about $300 every month out of impulse, which is a significant increase from the previous years. Some of those items you buy on a whim might be good purchases, but most of them will likely end up in your closet or the landfill. For example, fast fashion has a negative impact on the environment. It also doesn’t help that people keep buying cheap items that wear out after two or three months of use.
Since you will be spending that cash anyway, you might as well try to make it as consciously as possible. For instance, creating a monthly budget can prevent you from spending too much money on a certain category. When you do spend that cash, go for the option that causes the least impact on the environment. Choose quality over quantity and price, as this can reduce the number of items ending up in the landfill.
The Bottom Line
Money makes the world go round, but you’re the one to choose where yours goes. Try going for eco-investing as often as you can and be conscious of how you spend your dollars. Even a little can go a long way if you keep practicing it.