11th April 2023

Your financial values: How to determine what they are

When it comes to investing, it’s important to have a clear understanding of your financial values. Your financial values are the things that are most important to you when it comes to money and investing. By understanding your values, you’ll be able to make investment decisions that align with your goals, your priorities and the things you care about.

It’s no longer just about making money at any or all costs. Today it’s possible and encouraged to think about where you’re investing your money, with whom you’re investing it and the impact your investment decisions can have. Not all of these things may be important to you, but if they are then you have choices available.

What to consider when determining your financial values:

Understand your personal values: It’s important to consider your values outside of money. For some people, ethical considerations may be a priority, while for others, maximising returns may be the main goal. Knowing your own values can help you make investment decisions that align with your beliefs. Consider what’s most important to you in life. For example, are you passionate about environmental causes? If so, you may want to consider investing in companies or funds that focus on sustainable practices.

Determine what you want in life: What do you want to achieve with your money in the future? This could be things like buying a house, saving for retirement, starting your own business or leaving behind a legacy. Once you have a clear idea of your long-term goals, you can start to identify the values that are most important to you in achieving those goals.

Understand your relationship with money: Reflect on your past experiences with money. What financial decisions have you made in the past that you are proud of? What financial decisions do you regret? Reflecting on your past experiences can help you to identify the values that you want to prioritise in your future financial decisions. We explore this topic further in this article.

Look at the bigger picture: When evaluating an investment opportunity, you may want to consider the broader economic and social context in which it operates, by asking questions like: What impact does this investment have on the environment? How does it affect the local community? What are the long-term consequences of this investment? Who will my investment impact?

Consider risk and return: Every investment involves a trade-off between risk and return. In general, higher-risk investments offer the potential for higher returns, while lower-risk investments offer more stability but lower returns. It’s important to weigh the potential risks and rewards of an investment, and whether they align with your personal risk-reward profile, before committing your money. Think about how much risk are you comfortable taking on when it comes to your investments. Are you willing to take on a higher level of risk in order to potentially earn higher returns, or do you prefer a more conservative approach? Understanding your risk tolerance can help you to identify the types of investments that are right for you. You can access our risk calculator when you sign up to Propelle here.

In summary, determining your financial values is an important step in the process of investing. By understanding your values, you’ll be able to make investment decisions that align with your goals and priorities. This will help you to achieve your long-term financial goals and feel confident and happy with your investment choices.

Propelle does not provide investment advice. If you are unsure about anything, please seek financial advice from an authorised advisor. Your capital is at risk.