This is my journey to apply the book, Unf*ck your finances. The book is about personal finances but I’ve added actions specific to working for myself.
If you want a bit more context, the prelude pieces are Hope can be scary, Why do we never talk about personal finance?, and Getting my shit together: the plan for the next quarter.
The next thing I’m doing from the plan I made a few days ago is to understand where my money is invested.
Despite having debt and being bad with money, I’ve been saved by the country I live in. Here in Australia, employers are required to contribute to your retirement savings. If your salary is $100,000 pre-tax, they will put $9,500 into your superannuation account. Because I’ve been working since I was 15, I have a good amount in retirement savings. I lost some to not caring but it’s now all in one place.
Side note: If you’re Australian and you haven’t consolidated your superannuation, please take the time to do it. You could be costing your future self tens of thousands of dollars.
100% is in the High Growth investment option (note: different funds have different names for their options)
The major holdings (as at 31 May 2019) of this fund include BHP, Woodside Petroleum, Rio Tinto, Oil Search, and Santos.
There is another investment option: Sustainable High Growth
The investment strategy of this option is: “To invest in a diversified portfolio of Australian and international shares selected on the basis of sustainable investment criteria (and the application of some negative screens), together with Australian Listed Property.”
Their screening criteria is here.
There are other ethical funds in Australia (this article is older so the rates may note be up to date) but I’m not willing to do a massive research project at this stage.
I’ve just rolled my entire balance and any future payments from High Growth to Sustainable High Growth.
One day, I may also do a research project to find the right fund and investment option to suit my combination of ethical preference and required rate of return…one day.