money·5 min read

Skimm Money: ESG Investing, Holiday Spending, and Small Money Wins

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Design: theSkimm | Photo: iStock
Sep 16, 2022

Eyes On

ESG Investing

Aka environmental, social, and governance investing, which uses a set of criteria to evaluate companies you might want to invest in. Like businesses that minimize waste or don’t test on animals. ESG investing is often associated with climate-related sustainability, but the S and G categories consider factors like a company’s employee diversity or compensation structure. Research has shown ESG portfolios can outperform traditional funds. But not always.

Your move: 

  • Know your standards. ESG isn’t one-size-fits-all. A company might be mindful of its impact on the planet, but lacking in employee satisfaction. Consider what matters to you when weighing your options.

  • Consult a pro.Financial advisors who specialize in ESG evaluation can help you align your values with your investment strategy if you want guidance.

  • Select your strategy. Because you have options. You can buy individual stocks or invest in ESG mutual funds or ETFs. Or take a “set it and forget it” approach via platforms like Acorns or Betterment.

Money Tip of the Week

Start a sinking fund for your holiday spending.

Flights for the holidays are set to hit a five-year high, according to an analysis by the fare-tracker Hopper. Without proper planning, that plane ticket could wreak havoc on your budget. Enter a sinking fund, aka a savings account dedicated to an anticipated expense that doesn’t fit neatly into your monthly budget. Save a little, or a lot (you do you), starting now so your holiday season can be money-stress-free later. Psst…don’t forget to save for gifts (and tips), too.

Financial Goal Unlocked

Design: theSkimm | Photo: iStock

The Goal: Improve your finances in 30 minutes or less. 

A Winning Mindset: Start small. Paying off your credit card debt and maxing out your 401(k) are worthwhile financial goals, but not every money move needs to be a major one. Small money wins, like checking your credit score or negotiating a bill, can pay off big in the long run.

A Winning Strategy: A little goes a long way when it comes to improving your money situation. In 30 minutes or less, you can…

  • Check your credit report. And dispute any errors you find. Because a good credit history will help you get you the best deal on a mortgage or a car loan. Plus, It doesn’t take more than a few minutes. Bonus: It’s free.

  • Negotiate a lower price on a bill. Yes, you can call your internet company or utility service provider (think: gas, water, and power) and ask for a better deal. Nerves aside, the extra $$$ will be worth it. 

  • Rollover your 401(k). That account you forgot about from your old job probably isn’t growing the way it could, and it’s costing you. Once you set up a 401(k) at your new job or an IRA, contact your old provider to start a rollover.

theSkimm

We're all busy. But making impactful money moves doesn't have to cost a lot of time. So the next time you have a gap in your schedule, make one of these quick moves and feel yourself getting richer.

And Also This…

What we’re not holding our breath for…

Gender equality. The Bill and Melinda Gates Foundation released findings that gender equality won’t be a reality until 2108 at the earliest. While the pandemic certainly stalled progress for women (hi, shecession), barriers like access to education and reproductive care, which (spoiler) can hinder women’s earning power, existed long before COVID-19. 

What has Latinx business owners saying, “Gracias…”

Business services in Spanish. Payment-processing giant Square announced all its products (think: those tablets where you pay for your coffee, haircut, etc.) are now available in English and Spanish. Good news for Spanish-speaking biz owners and customers. And just in time for Hispanic Heritage Month. 

Why we’re dreading our next Sephora haul…

Makeup inflation. In August, prices rose 4.2% since the same time last year. In case you needed another reason to go #makeupfree.

Why we’re not checking our 401(k)s…

The stock market is having a rough one.

What’s giving us 2008 flashbacks…

Mortgage rates.

Save Your Seat: SkimmU Money

Register for our event series on investing, SkimmU Money. Because transforming two digits in your bank account to five (or six) can take a liiittle more than a savings account. Financial experts will lead us in four different courses informing us on all things investing, followed by a panel discussion and audience Q&A. Register now. And let’s build that wealth.


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