Sustainable ways to generate income
Green Wealth, Financial Health
It seems for the past year or so, everybody’s talking about passive income. For a while it was hard to avoid casual conversations without stonks, bitcoin, NFTs or other investments coming up. Social media is full of ideas for low effort side hustles. Reels about e-commerce and dropshipping “hacks” are prolific—but usually involve making profit from consumerism and are not so conscious of the supply chain behind them.
These ideas can be off-putting to the more ethical or sustainability focused mind. However, there are sustainable ways to make passive income without a guilty conscience. There are changes you can make to your regular finances to even create a more positive impact on the world. Here are ways you can boost your finances while living green.
Finding a greener bank
First up: banking. Check out your bank and see if it’s time to switch. Companies such as Treecard or Tomorrow bank offer a way to keep your money secure without unknowingly fuelling environmentally damaging projects. In fact, these banks can be a way to passively create good in the world such as Treecard planting trees each time you pay or Tomorrow bank supporting renewable energy, sustainable agriculture and affordable housing. Treecard also offers a rewards scheme you can sign up for to earn points for sustainable travel, nature activities or such. We all need a bank account so what easier way to create benefits for you and the planet.
Investing in green projects
If you want to invest directly into something that’s good for the planet, ecoligo offers a transparent way to do so. Plus, it’s highly accessible, too: From as little as 100 euros, you can already put your money into global projects focused on clean, renewable energy. All projects are listed on their website including project details and investment plans with interest amount and more. This is a great way to earn interest while supporting a greener future–with complete traceability of what your money is funding. Over 4,450 investors are already using ecoligo and the company makes it easy to get started. ecoligo has even put together a guide (in German) to help you if you’re new to investing and unsure about the different options. You can download it here.
Impact investing in startups or companies
Know a sustainable company that you want to see succeed? Or an eco-friendly real estate you want to help grow? It could be a win for both of you if you invest. The green space is full of disruptors and digitizers that need support–just look at the flood of plant-based companies on the market recently. The renewable energy industry is also seeing a boom of new startups in the market. When you invest with individual stock directly in these companies, their growth becomes your concern. This can be seen as riskier since if the company does not succeed, it would mean a direct loss of your funds. However, it is a way for you to truly know where your funds are going and the impact you’re creating.
Trading sustainable ETFs
ETFs or exchange traded funds are a group of assets that you trade like you would with individual stocks. Usually people opt for ETFs as it’s less of an “all in one basket” deal, so less risk. This is a more suitable option if you’re open to long term investment and are more money minded. There are a plethora of options for ETF trading however trying to find truly sustainable options may be more difficult as fund collections are less transparent and may be managed by less “clean” corporate companies. Sagewealth offers you ETF options only in sustainable and ethical companies, as well as complete guidance on what’s best for you. Initial investments are a bit higher than ecoligo for example but the company offers affordable fees and flexibility for deposits/withdrawals.
Quick tip: Make your energy bills greener and leaner!
The energy crisis has already caused an uptake in renewable energy which is a boost for the planet but could also be an opportunity for you to optimize your financial health. Ostrom offers 100% renewable energy with a digital-first approach. Signing up or switching over is easy and efficient and the team takes care of most of the work. Ostrom helps you track your energy consumption with a clear app interface so you can, on the one hand, monitor your energy use and hopefully reduce it for a greener lifestyle, and on the other, you can control your monthly finances. So even if you’re not ready to start investing or introduce a side hustle, a quick switch to Ostrom could be just what you need to boost your finances and live more sustainably.
When it comes to finance and investing, particularly impact investment, there is unfortunately much greenwashing in existence. When you are assessing whether an entity is the right place for your money, always take a look at the fine print and their history. Talk to representatives to learn more about how they are funded or check sites such as Crunchbase or community forums like Twitter. While the initial process requires some time and thought, you’ll soon be set up for boosted finances and a positive impact on the climate long-term.
The investment forms discussed in the blog do not represent specific purchase or investment recommendations. The authors and Aplus Energy GmbH are not liable for any losses incurred due to the implementation of the thoughts or ideas.
This article appeared on Ostrom’s blog.
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