November 25, 2021

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TOGETHER WITH

Happy Thanksgiving 🦃, and for those outside the US, happy Thursday. Thank you all for following The Gist—we're so grateful for your support!

Trivia for today: how many items does the average American home contain? a. 3,000, b. 30,000, c. 300,000. Follow the 🌊 below for the answer.

Money topics for today:

What it means to go green
5 millionaire habits you can implement today
Decluttering to save money

SUSTAINABLE INVESTING

What it means to go green

It's becoming more and more apparent that some of our current practices might not be sustainable in the long term, both for individuals and industries alike. We know change is needed, but that's easier said than done.

"Going green" is a broad term that encompasses a litany of different measures and steps we'd need to take to truly achieve that vague goal, and something that will likely take decades to reach as the world slowly aligns with it. Nevertheless, the momentum is here, and it's already changing how we invest.

What it means

Going green simply means sustainability. Although some will argue that the changes we're seeing in our climate and environment are part of something natural, there's no doubt we as humans have accentuated these harmful things with some of our modern advancements.

In order to go green, a lot of things will need to be addressed, such as renewable energy, sustainable transportation methods and less heavily "processed" items. Ultimately, all of these things contribute to greenhouse gas, or C02 emissions, which is the main driver of our problems.

A few industries under the microscope

Food industry: Almost everything seems to contribute to climate change, why? Because almost everything we do depends on things like fossil fuels. While some of the food industry's contributions come from things like deforestation and soil degradation, a lot of it can also be chalked up to just plain transportation and waste.
Transportation: This is a given, energy is by far and away the biggest contributor to our emissions problems, and transportation relies heavily on non-renewable resources to power it.
Fashion: It takes almost 1,000 gallons of water to make one pair of jeans, which ends up equating to, apparently, about 73 (33.4 kilograms) pounds of carbon equivalent. Needless to say, fast fashion isn't exactly the picture of health when it comes to sustainability.

Impacts on investing

Future-oriented: In a way, the green evolution we're witnessing plays right into investors' strengths. The markets are about investing in the present for a better future, and finding sustainable companies that do this exact thing in the real world will benefit your portfolio.
Ditch assumptions: It seems like a foregone conclusion that it'll be safe to invest in a blue-chip energy giant for the next 30 years. Will it, though? The future of our traditional forms of energy is being increasingly contested⁠—both from the legislative standpoint and the market for them in the long run. Now may be a better time than ever to be unorthodox.
Being impartial: Our investments don't care about where we stand on the topic of climate change. Your beliefs don't have to align with the movement to a tee in order for profits to be made. The bottom line is, the market moves, and we have to move with it. It makes sense to play into the hands of trends at times, while also keeping some solid footing in sectors we already know as well.

And some parting data for thought... Many investment funds with ESG or environmental, social and governance criteria outperformed the broader market (S&P 500 index) in the highly-volatile first 12-months of the pandemic, according to this S&P study.

🍃 Not sure what ESG investing means? Take our bite-sized lesson on the topic:

What is ESG Investing?

Investing Basics

7 mins

FEATURING THE MILLENNIAL MONEY WOMAN

5 millionaire habits you can implement today

by Fiona Smith

With so much uncertainty from the pandemic, it's important to get your finances in order and financially prepare for your future. The good news? You don't have to earn a 6-figure salary to build a million-dollar portfolio.

Let me explain… In reality, building wealth depends on the small habits you implement today. Do you remember the saying, "baby steps?" Baby steps are what finance is all about – taking consistent, small steps to achieve your goals. You could still become a millionaire if you start implementing millionaire habits now.

Let's take a deeper dive…

Diversify your income – The average millionaire has 7 income streams. As the saying goes, "never put your eggs in 1 basket." …And if COVID taught us anything, it's to not rely on 1 income stream. Start building multiple income streams today.
Read more – 85% of millionaires read for at least 30 minutes daily. Reading books about finance and inspiring individuals is the ultimate shortcut because you could learn from the successes and failures of the best.
Build an emergency fund – The only constant in life is change. Be prepared for life's curveballs by saving 3 to 6 months' worth of living expenses in a high-yield savings account.
Don't drive away your wealth – A new car loses about 10% of its value the second you leave the dealership. Cars are depreciating assets, and to build long-term wealth, consider investing your money in appreciating assets like stocks, instead.
Save for retirement – Albert Einstein once said, "compound interest is the eighth wonder of the world." You don't have to start with thousands to save for retirement. You can start investing for your future with as little as $5 per day. Yesterday was the best time to start. Today is the second-best.

MONEY TIPS

Decluttering to save money

We've all heard of spring cleaning, and apparently, it's been around for thousands of years. Historians think it originated around the time of the Persian New Year, and the idea has also been tied in with other traditionalist holidays.

Here's the thing... you don't have to wait until spring to do a little bit of decluttering. And doing so now could actually end up making you a bit wealthier before the holidays. That is, unless you have OCD and love organization already, in which case you're probably good to go.

As for the rest of us, however...

👕 Turn your closet into a thrift shop: If you feel as if you've got a lot of clothes, yet only wear like 25% of them, it might be time to audit your closet. There's an abundance of apps and websites that make it super easy to sell unwanted items, and you might be surprised how much money is in your wardrobe. Just make sure to take high-quality photos.

💳 Facing spending habits: Sometimes when we clean out our home, we find a lot of things that provoke thoughts like "when did I even buy this?" Doing some decluttering can force us to come to grips with some, shall we say, whimsical purchases we've made, and lead us to reevaluate our spending as a result.

😌 Peace of mind: Although this doesn't have a direct correlation to turning a profit, creating more space and organization in your environment can feel like a weight lifted off your shoulders that you might not have even known was there. This can lead to feeling better, increased productivity, and even inspiring new ideas.

🌊 TRENDING ON FINNY & BEYOND

Answer: There are 300,000 items in the average American home (Becoming Minimalist)
📢 Calling all personal finance writers & creators: Would you be interested in writing bite-sized stories or Bites on finance topics (fully attributed to you)? If so, we want to hear from you! Contact us.
Quote of the day: "Gratitude is the sign of noble souls." -Aesop
Finny lesson of the day: If you're pretty certain you want to go down the path of adding more income streams and starting a side hustle, how do you go about choosing one?

How to Choose a Side Hustle

Career

5 mins

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The Gist is Finny's twice a week (Tues & Thurs) newsletter covering personal finance & investing insights and money trends. Finny does not offer investment and stock advice. The editorial team: Chihee Kim, Austin Payne.

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