5 Ethical money moves for all ages
At Hejaz Financial Services, we believe that making a positive impact on the world should benefit society and contribute to the greater good. We understand that it may require vast wealth, but we believe that we can still contribute meaningfully to improving our communities and environment by taking small yet deliberate steps with our finances.
Making conscious choices such as investing in sustainable options, choosing renewable energy providers, and supporting responsible brands can greatly impact our world. Don’t overlook the chance to make ethical decisions in your financial choices. Discover 5 ethical money moves you can make no matter where you are in life.
1. Check where your super is invested.
Super is a long-term savings plan that many individuals use to save money for retirement. You can choose your preferred super that aligns with your values. And when you retire, you can access your superannuation savings to support your lifestyle.
To ensure that your money is invested ethically, start by checking where your super is invested. Examine your super fund’s portfolio and the companies it invests in to confirm that they are ethical and sustainable. You can download the super fund’s Product Disclosure Statement (PDS) or contact your fund directly for more information.
It’s crucial to stay alert and conduct research to ensure that your investments align with your values. Be wary of misleading marketing tactics, such as “greenwashing,” that some major corporations employ to present themselves as more ethical than they truly are. Keep in mind that knowledge is power, and you have to conduct your research and make informed decisions.
Hejaz Financial Services provides ethical investing options that comply with Islamic principles. Our investment management strategy involves avoiding industries and investments that are considered harmful or impermissible, such as conventional weapons, gambling, tobacco, and animal cruelty. We strive to create retirement savings that are pure, permissible, and profitable. Click here, If you like to see more information about how we invest.
According to the RIAA (2022) report, it is an indisputable fact that ethical or sustainable investment products outperform the overall market in all categories and timeframes, even including domestic equity.
2. Ditch buy now, pay later services.
Buy now pay later (BNPL) services, which allow consumers to purchase goods and services and pay for them later in instalments, have taken the Australian market by storm in recent years. Although these services can provide a convenient and flexible way to manage purchases, there are growing concerns about their impact on consumers that include:
- Financial well-being (overspending and accumulating debt)
The ease of using BNPL services can be tempting for young adults and low-income individuals to buy more than they can afford.
- Lack of transparency
While some BNPL providers offer interest-free loans, others may charge high fees or interest rates, which may not be fully disclosed upfront. This lack of transparency can lead to unexpected costs for consumers, potentially exacerbating their financial struggles.
- Incentivising irresponsible or unethical behaviour
Pushing consumers toward higher-priced products as these loans offer great profit margins. Generating conflict of interest that prioritise sales over consumers’ financial well-being
Given the potential risks associated with BNPL services, it’s important for consumers to carefully evaluate the terms and conditions of these loans before using them Additionally, businesses offering BNPL services should ensure that their fee structures are transparent and that they are not incentivising irresponsible or unethical behaviour.
3. Evaluate your banking choices that align with your values
It’s worth considering that the funds you deposit into your bank account could potentially be utilized to support industries that may not align with your ethical values. Banks often allocate customer deposits towards various industries, which could inadvertently lead to supporting companies that do not share your values. For instance, research by Market Forces reveals that major banks in Australia have provided billions of dollars in funding to the fossil fuel industry, despite the signing of the Paris Climate Agreement. Therefore, it’s important to carefully choose a bank that reflects your values and ethical principles.
It’s important to check whether your bank supports the issues that are important to you, regardless of the amount of money you have in your account. Online resources like Market Forces and Responsible Returns (insert link) can help you compare your options and make an informed decision.
Making a positive impact and supporting a sustainable future can be achieved by selecting an ethical provider. Take the first step towards aligning your banking choices with your values today.
4. Review your investments
Making investments can be a wise decision when it comes to increasing your wealth and ensuring your financial stability in the long run, beyond your savings and superannuation. It is essential to ensure that your investments are in line with your own personal values and ethical standards.
Hejaz Financial Services is dedicated to ensuring your financial success without compromising your principles. We invest in sustainable industries such as clean energy, technology, circular economy, employment, community services, and healthcare. Conversely, we avoid investing in harmful industries such as military weapons, tobacco products, alcohol, gambling, and adult media. We can provide information on our investments here.
Reviewing the product disclosure statement (PDS) is crucial to determine which companies your investments are supporting. If you hold concerns about the industries or practices of the companies in your portfolio, it’s highly recommended to seek professional advice.
We understand that investing according to your values is important to you. Our experienced financial advisors are here to help you find ethical and Sharia-compliant investment strategies that align with your beliefs. With our knowledge and expertise, we can guide you towards investment opportunities that support the causes you care about. We make investing wisely simple and accessible for you.
5. Support organizations that do good
As consumers, we engage in buying clothes throughout our lives, and the brands we choose to support can significantly impact the world around us. Fast-fashion retailers usually provide trendy and affordable clothes, but their hidden costs include using up natural resources, emitting significant amounts of greenhouse gases, and disregarding the basic rights of workers. These are issues that you most likely do not want to be associated with.
Therefore, it’s essential to conduct research and identify ethical clothing brands that you can support within your budget. You can find ethical businesses through B Corp Website. B Corp is a unique certification and a vibrant community of businesses that prioritize social and environmental impact alongside profits.
B Corp certification is not easy to come by – businesses must undergo a comprehensive assessment that evaluates their entire social and environmental performance, commit to specific goals for improvement, and demonstrate ongoing efforts to meet those goals. In return, businesses will gain access to a powerful marketing tool that signals their commitment which helps attract customers and investors that share the same value.
That’s a wrap! In terms of utilizing our finances in an ethical manner, each one of us, regardless of our current life stage, has the chance to have an impact. It only requires some investigation and a few proactive decisions to guarantee that every dollar we expend reflects our ethical principles and personal values.