I have been reading and posting at Get Rich Slowly’s forum section recently. One of the forum topics was Socially Responsible Investing? the other was Personal Finance to Save the Planet. Both are great Green Capitalism topics. I believe that investment and finance decisions CAN have an affect on our planet.

How do we create a positive affect on the planet through our investments and personal finance behaviors? One of the greatest contributions to the planet can found in making positive personal decisions that leave us feeling empowered. If we feel that we are in control of our finances then we will take the time to dig deeper into the reasons and consequences of our financial decisions. For example, a person burdened with $20,000 of credit card debt that they are not managing is unlikely to feel that saving money to invest in a socially conscious mutual fund is important.

For those people that have developed a balanced personal finance routine and are planning for strong financial future at the age of retirement, investing in the planet can be a challenge. However, having sound financial skills is liberating. There are many financial goals that can be established and met with an amazing short period of time. My partner and I paid off over $10,000 of consumer debt in about 18 months, which now allows us to contribute a larger amount of our income to savings. This liberation has led to us trying to figure where to put the new funds. The balance between our financial goals and our social and environmental principles has not been established.

The Capitalist in me allows me to invest in companies and mutual funds that are not green. The Green in me pushes me to wash my used tin foil in rainwater. I will not be able to purchase the most environmentally and socially responsible products if I don’t have the money to do so. Fortunately at this time I am in a dual income household. At retirement we won’t have an income. We will have to utilize the nest egg that we incubated for a lot of years in order to meet our financial needs. If that nest egg is too small, we will forced to make financial decisions without the flexibility of using green products and services.

My plan is that my current investments will provide a strong return on investment so that I can start to use investments in socially responsible companies and mutual funds to meet my long-term financial goals. This follows a game plan in investing that has investors being more risky when they far from retirement and becoming more conservative with their investment style as the get near their goal. My investments will get more green as I progress towards my retirement goal.