Welcome to #GoparityExplains, a segment to help you dive into the impact investing world, explaining concepts, sharing tips, and more!
We’ve been living in challenging and uncertain times regarding investing: wars, climate change, and a global crisis. Economic instability can put people off investing in a country where the level of financial literacy was rated last in Europe in 2020 (Central European Bank).
[Impact] Investing has associated risks — it is not a certainty. Therefore, knowing how to invest and understanding what you are doing with your money is paramount for a conscious decision.
To help anyone who wants to start investing but hasn’t yet taken the plunge, we have put together six tips to bear in mind:
📰 Be on top of the news
These are uncertain economic times, and all investments have associated risks. It is essential to stay informed about the national and international economic and political landscape to make informed and responsible decisions. Choose one or more reliable newspapers to follow on your current online channels. Decide which one(s) to subscribe to.
🤓 Learn about [impact] investing
Investing is a topic that still raises many doubts, especially for beginners. Investing in financial literacy is fundamental to making informed and accountable decisions. Develop your financial knowledge with the following:
- Webinars with experts — you can join our monthly #GoparityMeetUps;
- Books from accredited authors;
- Follow certified content creators.
🗓️ Define a plan
Defining an investment plan is a strategy for feeling more secure. First of all, it’s essential to realise the main objectives of the investment, the reasons why you’re making it, and define its time horizon. Knowing your motivations well will make it easier to define the path to follow and make more conscious investments.
🧠 Invest consciously
Before you start, ask yourself:
- How will the money be used?
- How is the world now?
The investment market is growing, and there are more and more platforms for this purpose. Given the latent climate crisis, consider investing with a positive impact on the planet. Did you know that… investing sustainably has a bigger impact on your carbon footprint than not flying, becoming vegetarian, or using energy from renewable sources?
🤹♀️ Diversify to mitigate risk
Investing has associated risks. Diversify your portfolio to spread risk across different industries, locations and products.
💆🏼♀️ Keep calm and #useyourmoneyforgood
It’s essential to know how to manage your expectations and think in the long term. The market is cyclical; expect adverse fluctuations during the investment period. Not seeing immediate results can generate some anxiety, and that’s one of the reasons why it’s essential to plan. Positive results can take time, which doesn’t mean you’ve done anything wrong. Sustainable projects have a long implementation period, meaning that thinking long-term is better for you and the planet. Have you met Goparity? (asking for a friend)
Do you have any questions or other helpful tips? Please write in the comments and share your knowledge with us!
