Building a Nest Egg

Financial experts have a lot of opinions on just how much money we should be keeping in our savings accounts. The standard is usually six months worth of expenses to sustain you in case of a lost job or another financial calamity. If you can’t have six months, then three months is considered better than nothing. Unfortunately, there are so many of us who have nothing, and there are a few reasons for that. Some of us live paycheck to paycheck and have to put emergency expenses on a credit card every so often. Others could budget more carefully, but they instead blow their discretionary income on Taco Tuesday or tickets to the local football game. There’s nothing wrong with tacos or football, or with eating tacos while watching football, but it’s worth taking another look at your budget if all your extra funding goes to stuff like that. One option worth considering? Investing some of that money into the stock market.

Responsible investing

The stock market does not have a great reputation. It’s hard to understand, for one, and a lot of people think Wall Street fat cats love throwing money around without any regard to who they might be hurting. The Occupy Wall Street movement that blew up a few years ago showed there was really no love lost between the so-called 99 percenters and the 1 percenters. However, the stock market can be a useful tool if you know how to utilize it properly. It’s easy to convince yourself that all the worthy stocks are irresponsible and greedy, and there’s no point in lying down with the dogs if you’re going to have to wake up with the fleas, so to speak. Before you write off the whole thing, though, take a little time to do research for sustainable investing. There are companies out there that want to make money without leaving a trail of damage in their wake. It’s a fine line to walk, but some companies are making admirable attempts.

Talk to a financial adviser as well, ideally one who shares your goals. If an adviser is going to constantly push you to invest in causes or organizations that you find morally unpalatable, then it’s time to find someone who is willing to get on the same page as you. No, Wall Street isn’t going to be mistaken for a church anytime soon, but it’s still worth making an effort to find places that share at least some of your beliefs about how the world could (and should) operate.

Where to spend your money

In a few years, or maybe sooner, you can build up a nice little investment account. Then it’s up to you and your advisor to decide if and when to cash out and use that money for something else. Don’t do anything haphazardly, but take time to really consider purchasing something tangible that would make you happy for a long time to come. A lot of people decide to buy some real estate. Maybe they want to look at Boulder condos or Seattle townhouses. Maybe they would love to buy up a bunch of empty land in Idaho and build their own commune. There’s so much you can do with a little money and a lot of ambition.