Many build wealth to secure the livelihood of themselves and those they care for. This notion makes sense—we all work hard for our money and want our loved ones to have comfort and stability in times of uncertainty.
Building generational wealth that ripples through a community is one of the most wonderful gifts one can give in our society. Whether through direct investments in charitable events or personal loans to support friends and family, learn some tips on building community through healthy financial habits.
Leveraging Credit Cards to Your Family’s Advantage
It may seem like a small step, but building your siblings or relatives up and out of debt is a great way to help support your first community, your family.
To learn the value of having debts to pay back, you can use credit cards to monitor and manage your child’s money habits. If you teach them how to use debt responsibly at the beginning of their financial journey, they’ll grow confident around money and might raise their credit scores in the process, too.
Employing Personal Loans for Community Support
Personal loans can lift significant burdens in times of extreme need, and they don’t always require a credit history depending on your choice of lender. Regardless of how the money gets used, the support you’re showing can be just what the situation needs at that moment.
And, when you make your monthly payments on time and in full, this proves to lenders and the credit bureaus they report to that you’re a responsible lender. Eventually, this will increase your credit score over time, too.
Using Investments to Bolster Society
Learning the difference between an exchange-traded fund (ETF) and equity might not sound like it will bridge societal gaps, but how you invest your money matters from both personal and holistic standpoints. For starters, 401(k)s and IRAs are fantastic ways to save for retirement, allowing you access to an array of investment options. Many even make a substantial living trading equity assets day by day.
Environmental, social, and corporate governance (ESG) stocks, among some of those equity assets, can even be added to your portfolio, so you feel like you’re investing in companies making intelligent decisions for a better world. ESG investing is a powerful tool for putting your money where your mouth is, encouraging high standards in business dealings that may have socioeconomic impacts. The strictly monitored criteria for this socially responsible investing (SRI) help maintain the credibility of your investment in the world around you.