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How to Invest Intentionally

With investing, big rewards will come over time. Most people create wealth with a steady, consistent, and passive approach to investing. 

Investing is an activity that requires discipline and patience. It also requires knowledge and expertise about the different types of investments and their benefits.

A growing strategy is called intentional investing. It’s when you choose to invest in stocks and funds because you believe in the company’s mission and future growth. With intentional investing, you choose companies that align with your values AND will provide a return on your investment. It’s an intentional way of growing your money.

What is intentional investing?

Intentional investing is an investment strategy that aims to achieve financial goals such as retirement, college tuition, or buying a home. It differs from traditional investing because it requires a different mindset.

Traditional investing involves making investments purely on financial returns. On the other hand, intentional investing is not simply about accumulating wealth but takes into account how you accumulate it.

There are four parts to intentional investing:

  1. Understand why you’re investing
  2. Choosing what industries
  3. Knowing who to fund
  4. How your money is used

Why are you investing?

Your financial plan might include saving for retirement, paying off debt, building wealth, or any number of other objectives. But before you can start putting away a dime, you need to understand why you’re allocating those dollars–the purpose.

Asking yourself questions: what will you do when you retire? What are you trying to achieve? Why do you need that much money? What impact do you hope to make with your investments?

These questions aren’t just important — they’re essential and intentional. They’ll help guide your investment decision along the way.

What industries are you investing in?

If you listen to mainstream advice, you might believe that the point of it all is to “pick the winners” or beat the market. With intentional investing, you’re looking for industries that support your vision for life. For example, you care deeply about the environment, therefore you intentionally avoid the fossil fuel industry.

Who are you investing with?

Now that you know which industries, the third part of this equation is knowing exactly which companies to choose. This is about making sure the company’s mission and operations are aligned with your goals. It’s answering, how is the investment aligned with your values?

How are you investing

Finally, intentional investing includes which platforms and financial advisors you work with. You’ll need to use online brokerages that offer thematic investments. They will provide asset allocations in public companies that align with your values and investment objectives. Additionally, you’ll want to work with a financial planner who can provide you intentional investing strategies and values-based investment advice.

Is impact investing same as intentional investing?

Impact investing is a form of socially responsible investing that seeks to maximize financial returns while also delivering positive social and environmental outcomes.

What is socially responsible investing?

Socially responsible investing (SRI) is a form of investment that seeks to align an investor’s financial interests with their values. SRI is a subset of environmental, social, and governance (ESG) investing. ESG investing looks at factors like corporate governance, climate change, human rights, labor practices, and gender equality in addition to traditional financial performance metrics.

Some examples include:

  • Intentional investments include companies that have a positive impact on society and the environment is called “socially responsible investing”.
  • There are many different types of socially responsible investments, such as investing in renewable energy projects, investing in companies that support environmental causes or investing in companies that give back to their communities. 
  • You can also invest in companies that do not directly contribute to social issues but indirectly through their supply chain. For example, if you buy products made by a company that supports women’s rights, this will positively affect the lives of the people who work at the factory where your product was made.

How to Start Investing Intentionally

Start Investing With These Simple Tips

1. Write down your values and goals

Do you ever wonder where your life is heading? Values are the principles that guide your life. They are the things that you believe in and hold dear. Values are the things that you live by every day. Goals are the things that you want to achieve in your life. These could be anything from losing weight to starting a new business. Write down your values and goals and keep them somewhere safe. It will help you stay focused throughout the rest of this article.

2. Create a budget

A budget is an essential tool for anyone who wants to invest intentionally. It helps you plan out your finances, set goals, and stay focused on your financial future.But creating a budget isn’t always easy. In fact, most people struggle with it at first. So if you’re looking to get started with a budget, here are 5 simple steps to get you started.

3. Find an online brokerage

If you want to intentionally invest in stocks, bonds, mutual funds, ETFs, etc., then you need to open an account at an online broker. Online brokers offer a wide range of investment options, including index funds, exchange-traded funds, and individual stocks.

Find an online brokerage here.

In conclusion

Intentional investing has been gaining popularity among investors who want to ensure their investment portfolios align with their values. Fortunately, there are now many online platforms that offer tools and resources for people interested in intentional investing. And access to a financial advisor offering financial planning with an intentional approach to investing is becoming more widely available.

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