Blog — Sisters for Financial Independence

As individuals, we all have the power to make a change. Today, money makes the world go round. That is an honest reality that we all must face, which means we need to be more conscious about what we buy, where we park our money, what we invest in, and how we go about changing a system that relies heavily on consumption and growth.

1) Spend Money Consciously

It’s no coincidence that the more we spend our money consciously, the better it is for the wallet and the planet. “Vote with your wallet” is something that’s long been suggested and it’s time we take action. The first step is to get conscious of what we are spending our money on. While you don’t need to track every dollar, it’s prudent to be aware of where your money is going and where it is being wasted. After all, items that do not get used become a waste of money and time in the end. Some actions to help:

Make your wants few. Figure out what brings you the most value and spend money on that.
Unsubscribe from marketing emails, unfollow brands and influencers.
Institute a waiting period before making a purchase to reduce impulse shopping.
Opt to purchase items secondhand.
Borrow, mend, or use up before buying.
Support local so that the money remains in your local communities
If purchasing new, opt for items that will last a while and opt to support businesses that have pledged to balance people, planet, and profit or businesses that have pledged to give back profits.

2) Break Up with Your Bank

One of the hallmarks of financial security is to have an emergency fund that will cover 3-6 months of basic living expenses should the unexpected happen. The recommendation is to place that money in a high-yield savings account (HYSA) where it is secure, accessible, and has a chance to grow a little bit by earning interest.⁠ If this fund is in place, congrats!

Now that the money is in place, it’s time to park it in a bank that’s in line with your values.

Money is a Multiplier! I

The money we put in the bank doesn’t just sit there, instead, that money is used many times over to fund projects, loans, startups, and so much more. Most times these projects may not be in line with our values. The sad reality is that mainstream banks like JPMorgan Chase, Wells Fargo, Citi, and Bank of America are the top financiers of the fossil fuel industry which is a large contributor to climate change according to a recent report "Banking on Climate Chaos" by the Rainforest Action Network.

It’s time to break up with your bank! Find a new one that’s keeping the money in YOUR community and supporting projects that are IMPROVING the place where you live.

You can use a tool like mightydeposits.com to see your current bank’s impact and to find a new one that’s in line with your values. Mighty Deposits analyzes public data about how banks use money and provides a scorecard. They have a fairly robust database that you can filter based on your requirements. From there, find one that is FDIC-insured to hold your emergency fund.⁠⠀
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If you don't have an emergency fund yet, then work towards earning more and spending less, and using the difference to top off that fund. If you're getting a tax refund or still have money left over from the stimulus check, this can be a good place to put that money.⁠⠀
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⁠Please do not wait to open an emergency fund. Don't let perfection get in the way of progress. Find a good enough bank, for now, start depositing money towards it and then re-assess that bank later on.

3) Divest and Exit

As there's no such thing as a perfect environmentalist, there's also no such thing as a perfect investor, but each one of us can make decisions that help create a different kind of future.

Every once in a while, it’s prudent to review your investments to ensure you have a balanced portfolio and to also ensure that you are investing in companies that are in line with your values.

The concept of divesting is all about exiting and excluding specific companies and industries from your portfolio. This can be easy to do if you manage your own portfolio, but harder if you are investing under an employer-sponsored plan or have a money manager. With an employer-sponsored plan, you are limited to the funds that have been made available by the plan sponsor which can mean may mean you have little access to values-friendly funds.

An easy way to invest is to invest in index funds. The upside of index fund investing is diversification, low-cost fees, and accessibility to a wider range of investors. The downside is that you as an individual have little say in how the fund votes. Additionally, because index funds use a market index, without a hard-working portfolio manager behind the scenes, there's no one asking the hard questions to company management on how the company can do more to

You can use tools from As You Sow, a leading shareholder advocacy group to get ratings on your existing investments and from there find a new one that’s in line with the future you want to see.

Action Plan to Consume, Divest, and Invest for a Better Future

4) Invest in Alternatives

There's no easy answer to being a socially conscious investor, but there are steps we can take. A big thing is to remember that the stock market is not the only place we can invest our money. There’s so many opportunities to invest locally, to invest in the local food movement, to invest in new ventures promoting a cleaner Earth and while some of these do not generate straight monetary returns, they improve communities, livelihoods and people's future opportunities.

As you plan your investing strategy, decide if there’s a percentage you can set aside for alternative investments. If alternative investments make you nervous, keep learning about them and as you and your investments grow, you can then shift some of it towards areas that you value.

5) Get Vocal to Change the System

There’s no denying that a system has been built to favor the privileged. We all need to acknowledge it and to work to change the system. This can come in the form of shareholder advocacy to societal changes to government intervention.

If you are an investor, a big area to read up on is shareholder advocacy. There's an inherent push and pull here with companies needing to post profits for shareholders, but at what cost to other stakeholders like people and the planet? How can we vote to bring about changes to the companies? As a shareholder, you have a right to vote to call on companies to make decisions that’s good for people, planet, and profit.

It’s also imperative that we elect leaders who are willing to do the work to make changes for the future. Support leaders who believe in championing for the people. Remember that the people we elect today make the laws that affect future generations.

Lastly, the work that you do in your own communities can have a lasting impact. Influence doesn’t require you to have millions of followers. Spend time in your own communities and start the work there to champion for change.