Morningstar Money Challenge: Day 4

Task for Today: Find your financial community

Ruth Saldanha 5 November, 2020 | 4:28AM

Female planners

This article is a part of a month-long Morningstar Money Challenge. You can find the details here

It’s hard to go it alone, especially when it comes to money. Yet with personal finance, we often spend a lot of time on the ‘finance’ part of it, and not much on the ‘personal’ side. The fact is that personal finance is personal. There may not be a ‘right’ or ‘wrong’ answer, or solution. As our editorial manager in Europe Holly Black says, “What’s right for me, might not be right for you – it depends on an endless array of factors such as your risk tolerance and your overall goals.” For this Money Challenge, let’s get to know your inner ‘finance’.

We’ve talked about how money comes with a lot of anxiety for many people, and for some, financial therapy may be the solution. But maybe that’s not for you. Even if you’re not yet at a place where you want to go in for financial therapy with a professional, there are still ways for you to find a financial community. Even in your unique circumstances, though, you could find similarities with others.

The Early Retire-ers
For example, you might be interested in the Financial Independence, Retire Early – or FIRE – community. Coached by FIRE advocates on websites like Mr. Money MoustacheOur Next Life, and Can I Retire Yet?, FIRE adherents focus on spending mindfully on what they find important, saving early and often, and broadly diversifying their investments across a globally diversified portfolio, usually consisting of inexpensive index funds. While the movement has increasingly emphasized the “financial independence” piece and downplayed early retirement, many FIRE practitioners are aiming to retire by 40, if not sooner. 

Additional Reading:
-          Tanja Hester on The Longview Podcast
-          Chris Mamula on The Longview Podcast

Planning with Women
You may be looking to find inspiration from women who work with women, and can talk to unique circumstances around money and women. For one, women need to plan for different circumstances than men. We have longer lifespans, tend to be caregivers for both parents and children, and as a result, we may take breaks from the workforce. Even when we do work, we tend to earn less. Women like The Budgetnista – Tiffany Aliche – talk to these and other issues.

Responsible Investors
Perhaps you might be interested in environmental, social and governance, or ESG Investing, or investing based on your values. This could mean following firms like Sustainalytics, a Morningstar company that focuses on ESG focused research, or investigating the links between racism and investing, and finding out what you can do about systemic discrimination.

You might also care about climate change, and want to be a shareholder that engages with climate-related issues, or you might even ask if Canada is ready for the disruption around climate change and if we are indeed future proof.

Or you might not care about any of this, and might just want to know where to get started on your investing journey.

Whatever your circumstances, there probably is a community where you could get your financial inspiration. Take the time to find what works for you, and find a space where you can keep track of your progress, get news and encouragement, even after the challenge is over!

Get the Latest Personal Finance Insights in Your Inbox

Learn the latest here

About Author

Ruth Saldanha

Ruth Saldanha  is Senior Editor at Morningstar.ca

 
 

© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies