More women than ever before are making their money work harder by investing. A recent study found that in 2021, 67% of women had investments outside of retirement, in comparison with just 44% in 2018. That’s a huge increase in just a few years! Women are increasingly viewing their finances, not just in terms of their present situation but also in terms of where they want to be in the next 10, 20 or 30 years.
As a financial advisor, I’m passionate about empowering women to take control of their finances, and thrilled to see more and more women taking the reins when it comes to their financial future. But, not all investments are created equal and with our world currently in crisis, women are opting to invest more ethically.
So I’m also excited to see that women are choosing more and more to think about their finances from an ethical standpoint – and make sure their money is helping create a future that aligns with their values.
In this article, we’ll explore how women are looking to invest more ethically in 2022. I’ll share why it’s so important for us to invest more ethically (even if you don’t have a huge amount in the bank) and some tips for how you can be more ethical with your investments.
Why is ethical investment in 2022 so important?
As a woman dipping your toes into the world of investing, you are likely to be thinking about your future, perhaps buying a property, or having something to pass onto your children. What you might not consider is how the money you invest is actually being used.
The reality is that unless you are investing in ethical and sustainable firms and funds, there is a high likelihood that your money is supporting major contributors to the climate crisis.
Your investment could include supporting oil and gas corporations and therefore be promoting insecurity for others around the world.
You might also be contributing to funds for industries like arms, tobacco, or mining.
To avoid this, women are turning to ethical investing to grow their wealth whilst also doing good in the world. After all, there is “no money to be made on a dead planet”. And as we become increasingly aware of the impact of our choices when it comes to fast fashion, food, and tech – it makes sense for us to consider how our financial decisions align with our values as well.
Women and Ethical Investment in 2022
Now we’re in the midst of another financial revolution driven by women: ethical investing.
As we become increasingly conscious about where we spend and invest our money and the causes we are supporting, women, in particular, are moving away from funding harmful industries and are at the forefront of the ethical investment movement. The 2018 Boring Money Ethical Investing Report found 32% of women to believe that ethical investing is very or extremely important, in comparison with just 14% of men.
A trend that is likely to continue, with more and more women likely to invest more ethically in 2022.
Ethical Investment: busting a common myth
A common myth associated with ethical investments is that they do not perform as well as conventional investments. These days, however, this is far from the truth. In fact, quite the opposite – the January 2021 Crown Ratings found that sustainable and ethical investment funds have some of the highest returns!
With an increase in laws surrounding sustainability and ethics as well as a drive towards greener consumption, investing in green companies who are taking advantage of this new market can actually have a reduced risk factor.
With ethical investing not only benefiting the planet but also benefiting investors, it is easy to see why women are choosing ethical investment in 2022.
How you can be more Ethical with their Investments in 2022
There is no set definition for what constitutes an ethical investment. After all, we all have different personal ethics and values in our ownlives, and the same applies to our investments.
It is therefore essential that you do your research carefully, think about what your ethical priorities are, and ensure that your investment will be doing what you want it to do. Before jumping into investing, it is worth considering your values and what ethical investing means to you. For example, are you content with ensuring that your investments do not include companies involved in damaging activities or do you want your money to be making a positive impact in specific areas?
Action: Take some time to note down your priorities when it comes to our future.
- What would you NOT want to be contributing towards?
- What would you LOVE to be helping fun in the world?
- What ONE thing would feel most meaningful for you to know your investment was part of?
Let’s make 2022 the year for investing more ethically
As we become more and more aware of the impact of our actions on the world around us, how we spend and invest our money is one of the most powerful ways that we, as individuals, can make a difference.
Women are leading the move towards ethical investment and with high-performing funds and a reduced risk factor, it is likely women will continue to invest more ethically in 2022. Let’s make thinking about the impact of our investments
For more information on how you can invest more ethically in 2022, take a look at our free ethical investment guide.
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Rebecca Robertson is the author of Evolve Financial Planning – financial planning education for women; a TedX speaker; and the seven times award-winning Founder and Director of Evolution Financial Planning.
Rebecca is known as the financial planner who is passionate about putting women firmly in control of their finances. She has helped thousands of individuals and families to achieve financial freedom and given them peace of mind that their finances are properly protected in case the worst should happen. With 19 years’ experience, she’s proud to have a 100% satisfaction rating from her happy clients.
As well as providing holistic and independent advice to clients, Rebecca’s also been featured in the Independent’s ‘Women in Finance’ and is a regular media commentator in FT Advisor and New Model Adviser, discussing financial issues particularly in relation to women.