ESG versus SRI: Whats the difference?

Socially responsible investing (SRI) and environmental social governance (ESG) investing are two different approaches to impact investing.The three basic measurable principles of ESG investing are the impact on the environment, social impact and governance (a companys overall leadership). Look for companies that are at the very least doing no harm and at the very best improving the planet through their products and services, says Marissa Bronfman, the former chief brand officer at Kizmet Impact Capital, an impact investment fund.SRI investing goes further by actively excluding or selecting investments based on certain ethical principles. Its a strategy thats unique to each investor. For example, gender-lens investing integrates gender analysis into decision-making. Before becoming associated with a company, investors assess that companys commitment to having more women in executive roles, and how well they score on pay equity and other workplace practices that benefit women, like generous paid leave.

How can I measure the impact?

Beyond the risk of not earning the desired return or losing money, which is part of any investment, impact investors consider risk over a longer period of time, and the impact of a decision on future generations. Impact investors also think about who is taking on disproportionate riskfor example, whether the risk has been passed to employees, suppliers, customers or communities. This might exclude a company that engages in questionable business practices or profits from a trade in weapons.

How do I identify legit impact investing from marketing hype?

Its hard to invest ethically when youre unsure where to find trustworthy information. There is the risk of investing in a company that is greenwashing, for instance. A company can use environmental language or environmental colours to position their product or service as something good for people and the planet, explains Bronfman.To familiarize yourselves with impact investing, start following accounts on social media such as @mymeaningfulmoney, @janinerogan, @bonnieowong or @financeforchange. You could investigate companies whose products you already use to see if they offer investment opportunities. Bronfman encourages everyone to do their due diligence on industries and companies.There are also publicly available impact-oriented resources, like the sustainable development goals from the United Nations. Third-party rating agencies also offer ESG ratings, but they can vary dramatically, so use them with other metrics.Developing an impact investment strategy sounds complicated, but Foley-Wong believes that a lot of it comes down to your priorities. To start, you can dedicate a small portion of your disposable income to investing and then make sure it aligns with your values, says Bronfman.Remember that impact investing is about doing the right thing in the long term, not for a quick buck. But the returns will be even sweeter when you know theyre aligned with constructive, positive change.Next: I Had $1.11 in Savings. Heres How I Improved My Relationship With Money

The post What Is Impact Investing, and Is It Right for Me? appeared first on Best Health.

Every intention should be both financially savvy and emotionally satisfying, says Shannon Lee Simmons, the founder of the New School of Finance, an advice-only financial planning firm. Not one or the other. And whether you want to buy new clothes, treat yourself to a bucket-list vacation or save, you need to put healthy financial intentions into action. Heres how.

(Related:I Had $1.11 in Savings. Heres How I Improved My Relationship With Money)

Focus on conscious spending for financial wellness

Conscious spending refers to the practice of knowing or deciding exactly how and where you will spend your money based on your core beliefs and values. To identify them, ask yourself: What is the most important thing to me? Why? What brings me happiness and gives me purpose? Find the central theme and use it as a framework for all your spending decisions.

Its important because you can buy things online within seconds, without even looking at the price, which can lead to a surprisingly big credit card bill. To counter this, Simmons believes one of the most important things you can do to feel more in control of your money is to remove your credit cards from shopping sites and apps on your phone. Manually entering it every time is crucial because it allows your brain time to process what is happening, she says. Because you have to physically take out a credit card and punch in the digits, youre more aware that you spent money.

Ultimately, conscious spending is about making a decision that youre going to feel proud of later on.

Not sure where to start? Pull up the last few transactions you made in 2021 and reflect on whether they match your values and priorities. This will help you set clear financial objectives for the new year.

(Related:How to Save Money, Depending on Your Current Pandemic Situation)

Implement micro habits

Rather than focus on aggressive financial goals, like saving 15 percent of your salary for retirement or putting aside a years worth of costs in an emergency fund, try to start with small actions that will result in changes in your behaviour over time.

Also known as micro habits, these minor, manageable actions are so simple they can be completed in under two minutes. For example, set a waiting period between wanting something and buying it. Put a 24-hour embargo on anything that youre considering purchasing, says Simmons.

You can also try the HALT technique: before you buy something, ask yourself, Am I spending because Im hungry, angry, lonely or tired? When faced with a challenge, stress or any other emotional trigger, you may turn to spending for comfortconsciously or unconsciously.

Develop financial boundaries

Even amid the countrys worst public health crisis, money was cited as the top source of stress for over one-thirds of Canadians (38 percent)more than personal health (26 percent) or employment (20 percent) or relationships (20 percent), according to the 2021 Financial Stress Index survey. Thats why its more important than ever to prioritize financial wellness. Creating boundaries is a vital first step.Pre-COVID, people got stressed out about how much they were expected to spend, says Simmons. And I believe that one of the lessons we can take away from all of this is that you dont have to say yes to everything.

Its easy to go overboard during the holidays, for example, so try setting spending limits with loved ones to avoid debt and overspending. Dont forget to set appropriate boundaries for yourself, too, which will help you make room to say yes to things that truly bring you joy, she says.

Change is difficult. As a result, self-compassion is another crucial component of financial well-being. Using an intention-based approach to setting your goals for 2022, whether you achieve them or not, is a gentler, more empathetic way to make change or help an idea come to fruition. So, lets move forward with intention. Whatever financial objective you have in mind, you can achieve it.

Next,How to Feel Better About Your Financial Situation, According to an Expert

The post 3 Simple Ways to Set Healthy Financial Goals in 2022 appeared first on Best Health.

Set your goals

“Ask yourself why you are investing in the first place, suggests Patel. Then you can allocate a dollar amount to each target and establish a timeline to achieve your objectives. If you have long-term goals like retirement, youre not going to need to access that money for a while in which case, it doesnt make sense to leave it in the bank earning very little interest. If you can afford not to touch the money, you can better ride out the stock markets ups and downs. But if you might need the money in a year or two, Patel warns, the market could crash and then youre pulling it out at a loss.Most experts recommend you have three to six months saved in an emergency fund before you invest. They also suggest you pay down high-interest debts first. But that doesnt mean you have to wait until youre debt-free to start investing.(Related: How to Feel Better About Your Financial Situation, According to an Expert)

Identify your risk tolerance

Almost every investment entails some level of risk the degree of uncertainty about how much money youll make or lose. The greater the potential return, the greater the risk. And your tolerance for that risk will be influenced by your age, income, investment goals, and level of comfort. (Ask yourself: What would you do if the value of your investments declined? How would you feel?)Theres no way to eliminate risk entirely when investing in stocks. To handle risk, you need to embrace the fact that the market will go up and down, put a plan in place that aligns with your tolerance and goals, and focus on nurturing the habit of investing.(Related: I Had $1.11 in Savings. Heres How I Improved My Relationship With Money)

Start small (really!)

A common misconception about investing is that you need to be making six figures to start.In fact, the earlier in life you start, the more time you have to take advantage of compounding the process of money multiplying itself, which allows investors to earn interest on their interest.Thats actually going to determine wealth far more than what you invest, says Patel.Theres also a myth out there that the stock market is scary. I get where that comes from. There are no guarantees, and the market can (and will!) crash again.But the good news is that you dont have to take excessive risks. There are different investment products that vary on the risk spectrum: mutual funds, guaranteed investment certificates (GICs), government bonds and equities, to name a few. Diversifying your portfolio can be far more helpful than focusing on what you are investing in.(Related: How to Save Money, Depending on Your Current Pandemic Situation)

Learn what you can

Nobody can predict whats going to happen in the market because there are so many factors you have to consider, Patel says You can look at a company and say the fundamentals are great, but then something happens, like a pandemic or geopolitical risk, that throws everything out. Thats why she emphasizes that investment is a long-term game. And even if there are no sure things when it comes to investing, there are lots of ways to learn more: Watch YouTube, listen to podcasts, join free online communities, or pay for a course.We all have to start somewhere (including me), so the only way to gain confidence is to take control and educate yourself. If youre still on the fence about investing in the stock market, investigate why you might be feeling that way, then seek advice from a source you trust.Now that you know more about what you can do before you start investing, here is the conversation you need to have about finances after the pandemic.

The post This is How to Start Investing if You’re a Beginner appeared first on Best Health.

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At the start of the pandemic, as the world locked down and celebrities were crooning Imagine into their iPhones, we heard a lot about how COVID-19 was the great equalizer. The virus didnt care about socio-economic status, the reasoning went, and besides, every one of us has been undone by all this upheaval and isolation. Even Ellen joked that being stuck inside stuck inside her five-bedroom, 12-bathroom, pool-and-tennis-court-equipped California mansion is just like being in jail!Of course, COVID didnt do away with inequality. It accelerated the inequality that already existed. Plenty of workers didnt skip a paycheque or mortgage payment when the pandemic hit. Not only that, they sat at home and watched as they racked up savings and their assets appreciated, because its been one of those crazy years in the housing market, Scott says. Men are overrepresented in the scientific, professional and technical industries, which fairly seamlessly shifted to remote work. And as e-commerce boomed, these same sectors actually added 55,000 new jobs between February and October 2020 three-quarters of which went to men. For some people, this hasnt really been a recession at all, Scott says. Its quite a K-shaped recovery. Thats the term economists use for a wildly uneven economic trajectory: Those at the top grow wealthier, while those on the bottom sink further into debt. But here, too, inequality persists; not all women are struggling the same way. The pandemic has really affected those who are already marginalized in society, Ravanera says. So, broadly, women are leaving the labour force in large numbers, but weve seen that racialized and low-income women have been even more affected.”(Related: What We Should Take Away From The Year of Covid)Since February 2020, employment losses have been largest for people who earn the least a group thats overwhelmingly made up of racialized women. Nearly 60 percent of women making $14 or less (thats the lowest 10 percent of earners) were laid off or had the majority of their hours cut between February and April of last year. Even among all female earners, racialized women were hit harder: Nine months into the pandemic, the unemployment rate for minority women stood at 10.5 percent, compared to 6.2 percent for white women. For Black women, it was higher: 13.4 percent. For Indigenous women, higher still, averaging 16.8 percent from June to August 2020. Racialized and low-income women are disproportionately concentrated in roles that are not well-protected, that dont have paid sick leave, Ravanera says. So theyre more likely to contract the virus, theyre more likely to have to choose between their health and their work, and theyre facing higher rates of unemployment.And the implications of that loss will stretch long past the end of this pandemic. The rent wasnt cancelled it was deferred, Scott says. Were looking at large debts coming out of COVID, and itll take people years, if not decades, to climb out of that hole. That impacts not only their security but the security of their family and kids, and whether these young people are going to be able to go to post-secondary school. In Canada, women are more likely to carry student debt than men are; theyre more likely to owe more money than men do; and theyre much more likely to file for insolvency based on that debt. It just reinforces disadvantage, Scott says. It really drives the wedge.No wonder, then, that this pandemic is wreaking havoc on womens health as well as their wallets. Financial strain not being able to put food on the table, not being able to pay your monthly bills contributes to ongoing stress and has a negative effect on peoples mental health, says Dr. Samantha Wells, senior director at the Institute for Mental Health Policy Research at Torontos Centre for Addiction and Mental Health (CAMH). A report released at the start of 2021 from Leger and the Association for Canadian Studies found that over 40 percent of unemployed women surveyed described the state of their mental health during COVID as bad or very bad. (Just over a quarter of unemployed men said the same.) And during the pandemic, CAMH found women in general more likely than men to suffer increased anxiety and depressive symptoms.Its one more way COVID has compounded inequality that already exists. We know that women experience higher levels of anxiety and depression than men do, Wells says. We knew that before the pandemic in fact, those levels are twice as high. So of course women were hit terribly hard. You see that in the numbers. But you also hear it really, really hear it when you talk to your friends and family and colleagues and neighbours and, very likely, when you stop for a nanosecond to check in with yourself. Adds Wells, You hear it when women tell the story of how overwhelmed they are.(Related: Going the Distance: How Covid Has Remapped Friendships)As the pandemic barrelled toward its first anniversary, an RBC report offered grim news: Nearly half a million Canadian women whod lost their jobs still hadnt returned to work as of January 2021, and 349,000 hadnt returned as of February. Theres always a concern that people who step away from the labour force will have a more difficult time getting back in; weve seen that with the so-called mommy penalty, where women experience a significant drop in their earnings for five full years after the birth of a child. But COVIDs sheer unpredictability complicates matters further. Theres so much that is unknowable, including how quickly the economy will get back into full gear and our appetite to return to the way things were, says Dawn Desjardins, deputy chief economist at RBC and one of the authors of the report. Will people want to eat in restaurants? Browse the shelves of tiny shops? Drop their kids off at daycare or put their parents in long-term care homes? I dont know whether that bounces straight back, she says.Nor does Desjardins know what the demand for labour will look like once this pandemic actually ends. Even before COVID, womens jobs faced a higher risk from automation, as AI made inroads into the services sector. Back in March 2019, another RBC report determined that women held 54 percent of the positions that were highly likely to be automated. That shakes out to 3.4 million jobs. And now? The pandemic has accelerated the digitization of business and e-commerce, Desjardins says. Will we need fewer people for that face-to-face contact? People have certainly become more accustomed to ordering their groceries or their clothes online.(Related: Covid, One Year Later: How to Move Ahead When the Tank Feels Empty)So what needs to happen here? In his September Throne Speech, Justin Trudeau acknowledged that women, particularly low-income women, had been hit hardest by the pandemic, and in March of this year just in time for International Womens Day Finance Minister Chrystia Freeland announced the creation of a female-led economic task force. A long-promised national child-care program seems closer to becoming a reality, which pretty much every economic expert will tell you is table stakes. The old approach to recovery, which is throwing money at guys in hard hats, is really not going to cut it this time, Katherine Scott says. Child care is absolutely critical.Beyond that, mandatory paid sick leave for all workers including part-time, low-wage and hourly workers is a no-brainer. (How are we still debating this in the middle of a pandemic?) So is setting a higher minimum wage. And so is understanding that these issues wont magically disappear once we all manage to get our COVID vaccines. For all the talk of these unprecedented times, theres lots of evidence to suggest womens labour, both paid and unpaid, has been deeply undervalued. And theres plenty of data to show racialized workers arent given the protection theyre due.Thats why any recovery plan needs to have equity at its centre, and why the people hit hardest by COVIDs fallout need to have the most say in the response. The cracks in our societys foundation have made us even more vulnerable to crises like this, and if we dont focus on who is most impacted, then those circumstances are going to continue, Carmina Ravanera says. Structural changes need to be put in place so that the recovery we have is long-lasting and so marginalized groups dont face the brunt of a downturn like this one again.Next, read about a death doula’s experience working during COVID.

The post What Does a Post-COVID Economic Recovery Look Like for Women? appeared first on Best Health.

Empathize

With money? No, money doesnt need your empathy but you do. Empathy, in this case, is about taking the time to truly understand who you are and what you value. You are a constant work in progress, as we all are. You are learning, adapting and developing. Taking this time to reflect will allow you to adjust and tweak your decisions so they meet you exactly where you are right now.

Define

Defining in this case simply means deciding the overall outcomes you want. This can be incredibly tough, but go back to the information you gathered at the empathizing stage, and start defining the key elements of what you want to achieve with your finances. Is retiring at a certain age a priority? Buying a forever home or a cottage? Helping with your kids education? What about your own values, which youve already spent time thinking about, are they connected with these goals? Why are they important to you?

Ideate

Youve figured out what gives you purpose and happiness. Youve got at least a sketch of what you want out of your life (not your money). Now is the time to ask, And how would my money work to support that?This is when you might start looking at options. Maybe you want to invest for the long term or save for the short term. Maybe you want to pay down some debt, because doing that will free up the cash flow you need to feel a little more secure and work toward some other goals. You may want to work with your spouse, friends, family or a finance professional to really get a good grasp on what kinds of ideas might work for you.

Prototype

Now that you have a few options, its time to test them. You might use a debt calculator, retirement calculator, or a budgeting or cash flow spreadsheet or app, or work with a financial planner to create thorough projections.

Test

With some ideas about potential outcomes, its time to choose the one or two that seem like they can take you where you want to be. You might start making those additional debt payments, contributing to your RRSP or trying a new cash flow strategy. Remember that youre not married to this just yet its still in the test phase. Try it out. Book some time to see how it worked so you can tweak or change it early enough that anything going sideways can be fixed.Design thinking is a great tool for your personal finances because your personal finances are all about you, your life and your version of success. When youre armed with the skills to make great decisions, youll be able to stay your course, even when the world around you plunges wildly into the unknown.Julia Chung is CEO of Spring Plans, an advice-only financial planning firm; vice-president of the Financial Planning Association of Canada; a board director at the Family Enterprise Xchange; and a mentor with SFUs Young Women in Business.Next: How to Feel Better About Your Financial Situation, According to an Expert

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The post How to Feel Better About Your Financial Situation, According to an Expert appeared first on Best Health.

1. Family medical history

Knowing your history of disease (on both sides) is one of the most effective ways to manage your health. Having this information on hand can help your loved ones, like your kids, do the same. Many medical conditions, such as diabetes, cancer and heart disease, often have a genetic component. Understanding your risk means that you can pursue genetic testing, change your lifestyle or simply be more proactive about relevant screening tests, such as mammograms. You may be amazed at what you can find out by simply asking some simple questions at your next family reunion.

2. Will and estate

Whether youre young, married or have children, if you have assets of any value, you should have a will, says Karon C. Bales, a lawyer and managing partner at Bales Beall LLP in Toronto, and then its a good idea to let somebody know about it. Have a family meeting and tell your family members where the original is and who will be the executor, says Linda Hochstetler, a registered social worker and consultant based in Toronto. The more you can own your life and your decisions, the better, says Hochstetler.

3. Organ donation

More than 4,500 people are waiting for life-saving organ donations in Canada. Register online with your provincial or territorial body to become an organ donor, and make your wishes known to your family members. Check out The Organ Projectfor info on how to register in your area.

4. Mental health

Every year, one in five Canadians will experience a mental health concern, according to the Canadian Mental Health Association. Mental health and addiction can have genetic components, which is one reason to discuss this once-taboo topic. Another reason is so that you and your loved ones can receive support, says Hochstetler. (Find out how Canadians really feel about their mental health.)

5. Advance care plan

Long before you can even imagine dying, you should take care of some practical things, such as setting out an advance care plan to ensure that you get the care you want if you are unable to communicate, says Hochstetler. This plan should cover issues like palliative care, health interventions and who will manage those decisions. Get the practical stuff done as soon as possible and you can edit it as you go, says Hochstetler. Most importantly, once youve made your plan, talk to your loved ones about what it contains so that they can help you carry it out. Check out Advance Care Planning to get started on your plan.

6. Fiances

Money can be a stressful topic one survey showed that 30 percent of Canadians cited financial stress as a bigger worry than their overall health. (Quick side note: Here’s how to properly use mediation to manage stress.) But its a relevant convo to have. Whether the conversation is with your children, your parents or your extended family, if theres a goal you want to accomplish (such as dividing up family assets), its probably time to break out of your comfort zone.

7. Personal documents

From your computer password to your bank documents, you should share the location of this information with a loved one so that they know where to find it if they ever need it.

8. Power of attorney

A power of attorney is a legal document that gives someone the authority to make decisions on your behalf. You need to assign an attorney for your personal care (health and lifestyle) and your property (finances). You need to assign someone (or ideally two different people) to manage these aspects of your life if you become incapable, and its key that you inform your family about who that person is and why. Its very important to talk about what your wishes are with the person who will be making those decisions when you cant, says Bales. Its much better than when Mom ends up in the hospital and no one knows who the power of attorney is or who is making decisions.

9. Funeral wishes

While it might seem morbid, if your future funeral details are important to you, share those wishes, recommends Hochstetler. Let your loved ones know if you prefer a burial over a cremation or a celebration of life instead of a funeral. Decide whether you want it to be public or private and cheap or extravagant, and make your values known, says Hochstetler.

10. Grievances

Forgiving someone for a past grievance or even discussing it can lift a real burden, says Hochstetler. She has seen clients debate whether or not to open up a conversation with a family member and then the person dies before the client decides whether to reach out. They always beat themselves up with guilt, saying I wish I had, and then its too late, says Hochstetler. If you can come to peace and say that nothing, not even death, will change your mind that you want to make contact with this person, then you won’t have regrets,” she says.Next, find out how journaling can better your health.

The post 10 Important Health Conversations You Need to Have Today appeared first on Best Health.

Make a Money Memo

The first step toward opening the dialogue between you and your partner and knowing where each of you stands financially is to simply write down a list of all bank accounts, investments, credit cards, debts and insurance policies that you both have. An easy way to start this conversation is to bring up the practical reasons for such a list, like having it in case of an emergency.In my career, Ive had to help countless widows whose spouses had taken care of all the household finances and left them not knowing what bills they had to pay or how their money was invested. A list could alleviate some of the financial stress brought on by the death, disability, illness or extended absence of a partner.

Book Monthly Money Meetings

A list is great, but finances fluctuate frequently. To stay on top of what is happening, set aside some time at the end of every month where you can discuss any changes. Use your monthly bill payments as a good excuse to get the ball rolling and ease your way into having a money conversation with your partner.

Monitor Your Money

A sticking point for many couples is how each partner spends and/or saves money. Luckily, most banks and financial institutions in Canada now have tools on their websites that will automatically categorize your spending into easy-to-read pie charts.During your monthly meeting, take a moment to compare and contrast how each of you spent and saved last month. If you think your partner is spending too much in one area, this is a good opportunity to point it out visually and set a spending goal for the next month. You can then re-evaluate any progress at your next meeting.

Merge Your Money

As you move into a long-term relationship with your partner, a joint bank account may become the next logical step to managing your money better. While combining all of your accounts will undoubtedly simplify and streamline your money situation and keep you aware of each others finances, there are those who will always like having their own personal accounts to maintain a degree of financial independence. But it doesnt have to be an all-or-nothing proposition.For example, you could still have separate chequing accounts but also have a joint savings account that you both contribute to each month. You can use this joint savings account toward things that youll be doing together as a couple, such as saving for a down payment on a home or a vacation.

The post 4 Expert Budgeting Tips Every Couple Needs to Know appeared first on Best Health.

Have a Dedicated Account

The first step is to set up a dedicated savings account. By keeping it separate from your chequing account, youll be less tempted to spend your vacation money and youll always know exactly how much youve saved so far.

Make Automatic Payments

Once this account is up and running, set up regular automatic contributions to grow your savings. For simplicity, have the money transferred to this account on the same day that you get paid and you wont even notice it leaving your chequing account. Think about this: Saving just $20 a week adds up to $1,040 over the course of a year!

Get a Travel Rewards Card

A great way to save is to get a travel rewards credit card. The biggest way you can save with a travel card is by using all the points that you build up while making everyday purchases toward your flights. However, many of these cards also offer discounts on car rentals and hotels and come with travel insurance, which can further reduce your vacation costs.

Minimize Exchange-Rate Fees

Buy foreign currency before you arrive at your destination. More likely than not, the exchange rate youll pay near tourist attractions will be higher because they know your options are limited.Also, try to plan your spending ahead of time so that you wont buy more foreign currency than you need. If you do, youll end up losing by paying exchange-rate fees twice once to buy foreign currency and then again to sell it back. You can avoid overbuying foreign currency by using your credit card while away. But make sure to phone your credit card company before you leave because some credit cards charge higher rates than others.

Explore Tax-Free Options

If you like to shop, youll be happy to know that many countries offer a sales tax rebate for tourists. In European countries, where the sales tax value-added tax (VAT) can be as high as 20 percent, these rebates could save you a great deal.In most cases, youll have to look for stores with tax-free displays in their windows or by the cashier to make sure that they participate in the program. When you make a purchase, ask the store employee for the rebate form. Fill out this form and bring it to the airport, along with the receipt and the item, before heading back to Canada so that customs can stamp it. Afterward, simply mail the package and collect your refund in a couple of weeks. You might even be able to get your refund at the airport, depending on where you are. While it may take a little extra work and time, it may be worth it if youre trying to stretch every dollar.

The post 5 Expert-Recommended Ways to Save for Your Dream Vacation appeared first on Best Health.

Q: I want my investments to support my ethics. Is that Doable?

The short answer is yes! Just as you make a conscious effort in your daily life to support your personal values, whether they are eco- or social-based principles, you can apply this behaviour to your investment portfolio.It starts with investing in companies that support communities and the environment. The good news is, theres a growing industry within the investment world that is dedicated to this very type of investing.Known for a while as responsible investing (RI) or socially responsible investing (SRI), it used to focus on excluding certain kinds of companies from your investment portfolio, such as not investing in tobacco companies. However, it has now broadened its scope to focus on investing in companies that consider environmental, social and governance (ESG) factors in their businesses.Environmental factors can include things like a company with a plan in place to reduce its carbon footprint. Social factors may consider a companys policy toward workplace diversity or working conditions for its employees. Lastly, corporate governance factors may look at things like disclosures on executive pay and incentives.And while it may have started out as simply a way to invest ethically or responsibly, ESG principles are seen more and more as a way to help create long-term growth. Companies that invest in their communities, employees and environment are believed by some to be laying the groundwork for their own future success.

Getting started with responsible investments

But before you go and tell your investment adviser that you want to invest responsibly, take a minute to think about what responsible investing means to you. As you can see, there really is no one-size-fits-all approach; it can focus on everything from sustainability to ethics to impact on community investing.There are many mutual funds and exchange-traded funds (ETFs) out there labelled ESG, sustainable or socially responsible, but that doesnt mean that they necessarily factor in things that are most important to you. Take some time to research them to make sure that they align with your values. You, too, have a responsibility to invest responsibly.Jordan Campbell is a financial adviser associate at Manulife Securities

The post Money Talk: Why You Should Consider Responsible Investments appeared first on Best Health.

What’s an RRSP?

With an RRSP, you can contribute 18 percent of your salary each year up to an annual limit (the 2016 limit is $25,370). The short-term benefit with an RRSP is that you get a tax deduction for making a contribution. The long-term benefit is that your money grows tax-free while it remains in an RRSP.The drawback is that when you withdraw funds from your plan, the money is added to your annual income and taxed. Also, after the age of 71, you will have to withdraw a certain percentage each year, even if you dont need the money. Lastly, once you take money out of your RRSP, you cant recontribute to it.

What’s a TFSA?

With a TFSA, you can contribute up to $5,500 each year. Unlike an RRSP, though, this contribution is not tax deductible. However, your money grows tax-free while it remains in a TFSA.When it comes to withdrawals, a TFSA is much more flexible than an RRSP: Withdrawals from a TFSA are tax-free, you arent required to withdraw from a TFSA if you dont need to, and youre able to recontribute any TFSA withdrawals during the next calendar year.So, to go back to your original question, should you contribute to a TFSA or an RRSP? While the answer depends on each persons unique circumstances, there are some general guidelines you can follow.

The BestSavings Account For You

If you think youll need the money in the next couple of years for a car purchase, a home renovation, an emergency fund or a family vacation, a TFSA is the better option because of its greater withdrawal flexibility.An RRSP is the better choice if you are in a higher tax bracket now but expect to be in a lower one in retirement. The math behind this is that youll get a nice tax refund for contributing at a higher tax rate today while paying at a lower tax rate when you withdraw funds during retirement.If you dont think your tax rate will change in retirement, a TFSA may be the better choice. The rationale is that the tax refund you would get from an RRSP contribution today would be identical to the tax you would have to pay on withdrawal in retirement. Noting this equivalence, a TFSA may be more attractive given the fewer rules regarding withdrawals.

The post An RRSP or a TFSA? How to Find the Best Savings Account For You appeared first on Best Health.

How To Become More Financially-Savvy

The time has come: you finally got your holiday credit card bill and it’s not pretty. If you went a little bit overboard on your spending this holiday season, don’t panic. We spoke with personal finance expert Rubina Ahmed-Haq about how you can pay off that credit card debt pronto, plus the other financial goals you should make for a happy and healthy 2017.

Pay Off Your Credit CardDebt

1) GetReal About Your Debt

When you see your credit card statement, accept that you’ll have to pay the debt off, says Ahmed- Haq. If you choose to pay off your credit card debt from another savings account that was allocated for other expenses, remember that youll still have to work towards getting that savings account back to where it once was.

2) CreateA Solid Plan

When it comes to paying off debt, the most important thing to do is have a plan, says Ahmed- Haq. Without a plan you wont reach your goal, or you might not do so in the most efficient way possible.Try and pay your debt off as soon asyou can, but be realistic about it.”If youre like most people, you wont want to spend every dollar of your disposable income on paying off your credit card bill, she says, so commit to paying off your debt using one third or two thirds of that money.

3) Get Creative With ManagingYour Expenses

When you’re paying off debt, research new ways to manage your expenses and debt repayment or speak to a financial adviser.Ahmed-Haq recommends a repayment plan option such as American Express Installment Management Plan, which helps you manage big purchases with the option of three, six, or 12 month repayments.If you don’t have an emergency savings fund, this is a good alternative to get through any emergency expense instead of getting into more debt you cant manage, she says.Another great resource that Ahmed-Haq suggests is Get Smarter About Money, which has free tools and calculators that will you manage your finances more efficiently.

Goal: Afford Healthier Lifestyle Choices

Making a healthy lifestyle choice is always a step in the right direction, but sometimes its hard to finance these health and fitness goals. If you dont have the extra money and the hard truth is you have to cut back somewhere, you can’t keep doing what youre doing and continue spending, says Ahmed-Haq.Check your monthly expenses and see what you can do to make your new healthy lifestyle choicehappen. Look at your mortgage or rent, utility costs, transportation money or entertainment money and see where you can save a little extra cash. Then, brainstorm ways to cut those expenses. For example: can you bring your lunch from home and use that extra money to go towards your new gym membership?If you think you’re already managing your expenses as efficiently as possible, you just have to make some tough choices, says Ahmed-Haq. For example, if you want to buy organic vegetables, deciding not to buy as much meat as you normally would can helpoffsetthe extra cost of organic produce.

Goal: Stop Arguing About Money With My Significant Other

Discussing finances with your partner or spouse doesn’t always have tobe stressful.“If youre living together or are married the most important thing is to always be honest with your partner about your income and debt,” says Ahmed-Haq. And if you’re not happy with how your partner is managing their finances, its important tobring up the issue in a polite manner, she says.To make managing money together as a couple easier,Ahmed-Haq recommends that couples have a specific account for shared expenses and their own separate bank account for personal expenses.Inspired to combine your health and finance goals? Here are 5 healthy goals that will save you money.

The post 3 Smart Financial Goals That Will Help You Lead A Healthier, Happier Life appeared first on Best Health.

Create A Budget

I can already hear the sighs. But before you turn the page, hear me out: A holiday budget can be quite simple. Start by picking an amount that you feel comfortable spending this season and plan from there. If you budget to spend only $500, that might mean $200 on a family dinner and $300 on gifts. And there you have it: a simple holiday budget youll stick to.

Plan Your List Ahead Of Time

With your budget complete, begin planning what you want to buy before you leave the house. If that $300 budget means one $50 gift for six people, start brainstorming price-appropriate ideas. If you go to the mall or shop online without an idea that meets this $50 budget, you may be tempted to impulse-buy and potentially blow your budget.

Dont Wait Until The Last Minute

There will be deals ahead of time. My mom was famous for this: Some years, in the middle of July, she would come home and tell us she found a deal and picked up a Christmas gift already! The good news is, you dont have to shop that far in advance for sales. Once you have a budget-friendly idea, head out early and take advantage of sales like Black Friday and Cyber Monday in late November. Even if those sale days have passed, the earlier you go, the more selection youll have, and it will help cut down on the stress of finding a gift.

Don’t Touch Your Credit Card

I find this one purely psychological. By using your debit card, you know that you only have a certain amount of money to spend before your account balance hits zero. With a credit card, though, you can spend up to your monthly limit a limit that is often higher than what you could afford in any given month and that you dont have to pay immediately. Using your debit card will help you stay within your budget by limiting how much you can spend.

Track Your Spending

Most banks these days offer features on their websites that automatically track and categorize your spending. There is also a host of apps that offer similar services. These tracking apps can help you monitor your day-to-day spending and even send you alerts when youre spending more than usual, keeping you and your budget in line.

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What Every Canadian Should KnowAbout RESPs

Registered Education Savings Plan (RESP) is a tax-sheltered investment account that allows you to save toward a child’s or grandchild’s post-secondary education. To begin, let’s define a couple of terms: The person who opens the RESP plan and makes contributions is called the “subscriber,” and the child (or children) that the contributions go toward is called the “beneficiary.”

Now you don’t necessarily have to open an RESP just for your own children or grandchildren. The beneficiary can be any resident of Canada who has a social insurance number (SIN). This includes your nieces, nephews or even family friends.

While there are two types of RESPs, we will focus on what is called a “family RESP.” Within a family RESP, you can name multiple beneficiaries as long as they are siblings (by blood or adoption) and under the age of 21 at the time that they are named to the plan. This makes a family RESP perfect for those who have several kids or plan on having more kids in the future.

Now let’s talk about some of the advantages of RESPs. One of the best benefits is something called the Canada Education Savings Grant (CESG), which is money that the government will put into an RESP for you. The government will match 20 percent of the first $2,500 you contribute per year per beneficiary under the age of 16 (those aged 16 and 17 can receive the CESG under certain conditions). The maximum CESG that a single beneficiary can receive is $500 per year and $7,200 over the lifetime of the plan. So if you contribute $500 in a calendar year toward each of your three kids ($1,500 in total), the government will deposit $100 (20 percent of $500) for each of them ($300 combined) into your family RESP, turning $1,500 into $1,800 just like that.

The other great advantage of the RESP is that both the money you contribute and the CESG grow tax-free while your children are enrolled in the plan, allowing you to build your savings faster. When you start withdrawing from the plan for educational purposes, the money will be taxed but taxed in the hands of the beneficiary, not the subscriber. Since the beneficiary will be a student at that point, the tax impact will most likely be minimal, as students typically fall in the lowest tax bracket.

As a final point, you might ask yourself, what if I contribute all of this money to an RESP over the years and my child doesn’t attend post-secondary school? Well, the great thing about a family RESP is that the other siblings listed as beneficiaries on the plan can use the funds for their post-secondary schooling instead.

For more information, talk to your financial adviser or set up an appointment at your financial institution.

The post The Easiest Way To Save Money For Your Child’s Education appeared first on Best Health.

Source: Best Health Magazine, September 2012

Quick: What comes to mind when you think about the topic of your money? Most likely, it’s one of these: Avoidance. Denial. Embarrassment. Regret. Uncertainty. Frustration. Trust me; you are not alone. Just five years ago I was in my mid-20s and teetering on the brink of financial ruin, all the while living a double life as a posh-looking PR professional with a great wardrobe and beautiful condo. I never shared with even my closest friends that I was living a life that (A) I could not afford and (B) was negatively impacting every area of my life. I was lying to myself about how I was going to get out of debt and get my life on track‘and I was even lying to my husband about what I spent and what I earned. I was losing sleep, breaking out in acne and facing minor anxiety attacks at the mention of debt.

My turning point came when my husband found a receipt for a pair of pants hidden deep in the trash. It was for $600. Looking at his disappointed face, I felt like some sort of junkie caught red-handed. I knew I’d hit rock bottom and began admitting to myself that I was behaving like an entitled child. In the days and weeks to come, I woke up to the reality that I was on a collision course to personal and financial self-destruction.

After opening up to a few like-minded friends whom I began talking to about my plans to reform my financial well-being, we decided to form a money group and support each other in our varied financial goals. In this group we shared details of our debt, our financial issues and even our salaries. Despite the fact that none of us has a financial background, we made a plan to make more money, spend smarter and get out of debt. And 14 months later, us ‘Smart Cookies,’ as we dubbed ourselves, were able to sit on Oprah’s stage and share how we had paid off $50,000 in collective debt and increased our collective earnings by $120,000’all in one year. Over the same period of time my skin had cleared, I was sleeping better than ever and I had a solid routine to income. How? In my spare time I was able to find additional contract work, create an online account to sell my clothes, and rent a room in my apartment.

I also found new and inexpensive social activities (running and volunteering, to name a couple) that kept me happy and fulfilled.

What I know about money is this: Changing your mindset toward it and improving your ability to manage it can improve almost every aspect of your life. From self-confidence to your relationship with your family and spouse, to your levels of stress, money’or the lack of it’is too often at the root of our problems. I know that money is one of the last things anyone wants to talk about, let alone figure out how to deal with. (Why build a financial plan when you could pin images of quesadillas on Pinterest?) But bear with me, and you may be glad you did.

What I am proposing in my new regular column in Best Health is that if you have money worries, you join me on a journey to change your financial life one manageable and meaningful step at a time. In future issues I’ll outline the most self-destructive money moves, and help you spot the warning signs and chart a new path.

I believe I can help transform the cringe-worthy topic of money into a conversation you’ll actually look forward to having.

This article was originally titled "Be a smart cookie" in the September 2012 issue of Best Health. Subscribe today to get the full Best Health experience’and never miss an issue!

The post How to get out of debt appeared first on Best Health.

Source: Adapted from HealthSmart, June/July, 2009

Part-time administrative assistant Claudine Bakker is feeling disheartened. For years, the mother of two has been trying to get her weight under control, but to no avail. Instead, she’s put on about four lbs each year and is now 22 lbs over her ideal weight.

Equally frustrating is her other constant struggle: to rein in her debts. A personal loan is taking forever to revert to zero, and as for her credit card balance… Why can’t she get on top of either?

Jay Zagorsky, a research scientist at Ohio State University, believes he has the answer. After an in-depth, 15-year study involving more than 7000 people, his research team uncovered a significant connection between the state of our weight and the state of our finances.

Specifically, Zagorsky’s team found that as individuals became successful at bringing down their weight, their net worth got a hefty boost. In the study, women who dropped ten Body Mass Index (BMI) points, for example, saw their assets jump by more than $11,000 US.

‘Saving and dieting involve many of the same concepts,’ says Zagorsky. Here’s how the two are related.

1.    Smart decisions govern diet and budget

It’s a simple idea and one that Peter Walsh, author of Does This Clutter Make My Butt Look Fat? (Simon & Schuster, $11.68), sees in action. He’s helped thousands of people streamline their homes and shift their attitudes about consumption, weight loss and debt in the process.

‘Nobody gains weight because there’s a chocolate bar or a hamburger in front of them,’ says Walsh. ‘You gain weight ‘ and debt and clutter ‘ because of decisions over eating and spending. Your home, head, heart and hips are all interconnected. It’s all about the decisions you make.’

2. Consumption means instant gratification

Our consumer culture doesn’t encourage us to wait (or say no) to anything, so perhaps it’s no coincidence that countries with high obesity levels typically also boast booming debt levels.

From the 1970s until 2000, the obesity rate in the U.S. increased by more than 110%, while the personal savings rate fell by 83%. Along with countries such as Finland and Spain, the U.S. now has one of the highest obesity and lowest savings rates in the world.

Sadly, Canada follows closely behind. According to Statistics Canada, 42% of Canadian women are overweight. As well, most of us are firmly in the red financially. The debt load for Canadian families rose 38% between 1999 and 2005.

3. Spending and eating offer a quick fix

Unlike in times past when cooking took effort and high-fat foods were a small part of the menu, all manner of tempting eats are now cheap and instantly available. And by comparison, it takes effort to resist temptation.

Dr. Rick Kausman, author of If Not Dieting, Then What? (Allen & Unwin, $29.95), notes, ‘Nowadays, people are all about a ‘quick fix’, yet sustained effort is the only way to lose weight.’

Walsh agrees. ‘To effect a change in your habits, you need to make the easiest option the best option. If you walk in the door starving and you haven’t stocked the fridge, then you’re more likely to eat takeaway.’

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The post 3 ways weight and debt are connected appeared first on Best Health.