Doing Veganuary? Put Your Money Where Your Mouth Is
Since 2014 Veganuary has helped one and a half million people eat a vegan diet for the month of January. People in over 200 countries and territories take part, and more and more people sign up every year. There are so many brilliant reasons to go vegan, but often people want to save animals, improve their health and help the environment.
Veganuary reports that 72% of participants in 2020 planned on staying vegan after January ended. It proves people are ready to make lifestyle changes for the good of others and the planet. Perhaps that’s you?
What you do with your money is hugely impactful too.
Vegan friendly banking
If your current account is in a traditional bank, you are almost definitely contributing to environmentally harmful practices. The banks grant business loans and these may be for animal agriculture, farming, butchery, slaughter, vivisection, breeding, hunting or fishing businesses.
If you change your bank account to one in a building society, such as Triodos or Nationwide, you can be confident this won’t happen. Building societies have strict rules who they’ll lend to, and they’re run to benefit the members of the building society (you).
If you’re keen to stick with a bank, research Charity Bank, where your money is used to give charities loans which traditional banks would deny.
Vegan friendly Savings & Investments
As well as your current account, you can also invest any savings into a building society. You can be confident that your money isn’t causing harm around the world, or to animals. There are four types of ISA for you to consider: a cash ISA, an investment ISA, an innovative finance ISA, and a lifetime ISA. You can save up to £20,000 tax free every year.
If you’re ready to start saving, or if you want to make your savings have as much impact as your vegan diet, Scottish Friendly or Nutmeg might be good places to start.
ISAS are something we can help you with directly. Funds can be screened to align your values and preferences, eg. Screening out fossil fuels and animal testing.
Vegan friendly Pensions
You may not think your pensions have much impact. However, they do! Switching your pension to an ethical organisation means you’ll help the planet 21X more than cutting plastic, going vegan or not flying. It is the most impactful action you can take.
Like banks, pension companies invest your money in other businesses. You have no say over what those businesses are, so you have no chance to invest in line with your values. All the pension company is interested in is getting a good return, so if investing in tobacco, deforestation, fossil fuels or animal agriculture provide good returns, they’ll do it. Make My Money Matter have a campaign to change the pension industry and you can be part of it by signing their petition, and asking your pension provider to go green.
You can also speak directly to your employer and request they use an ethical pension provider.
In 2020 ethical veganism was deemed a philosophical belief, which means people have a right to vegan-friendly
If you manage your pension yourself, do your research and consider asking your current provider to switch your funds. Here are a few terms you may wish to find research more;
- ESG
- Screening
- Impact
- Stewardship
Vegan friendly Insurance
Where you insure your life, travel, health and income can also have ethical implications.
Mutual companies do not have shareholders and are owned by their members. They are therefore more incentivised to make decisions to benefit their members. They are also have a much higher probability of paying claims. We work with every mutual provider to ensure our clients have access to the most appropriate cover.
The support they give you can be immediately beneficial: explaining what something means, finding a solution, or beginning the mortgage process. However, the benefit of a financial adviser is also hugely beneficial later in life, when investments come to fruition and you retire with a healthy pension.
Vegan friendly Mortgages
The support they give you can be immediately beneficial: explaining Whilst rates are important, people often don’t consider the ethical implications of who they have a mortgage with. There are no “Vegan mortgages” currently, however there are more ethical mortgages available. Even if you’re with a traditional mortgage at the moment, when it comes time to remortgage, choosing an ethical option is a great idea. As with ISAs and your current account, sticking with building societies are the more ethical option. The best way to find an ethical mortgage is to discuss it with an ethical financial adviser. They’ll know the market inside out, and be able to guide you to the best current deals with the company who’ll make the most difference.
Vegan friendly Direct Investments
Depending on your attitude to risk and existing investment strategy, directly investing in vegan companies is also a great option. Buying shares in companies such as Beyond Meat, Oatly, Pip & Nut are a great way to see your money grow and know you’re part of changing the world.
The Vegpreneur has a list of vegan companies you can buy stocks and shares in, but it does explicitly state you should also take advice from an ethical financial advisor.
There are also vegan investment opportunities on Kickstarter, with almost 2,300 vegan companies currently looking for finance to launch their businesses. Likewise, using Seedrs or Crowdcube means you can directly invest with companies which align with your values and interests. There are potential tax advantages to these investments, however, these options are considered higher risk due to the companies being new and there is a risk you will lose all of your investment.
These investments should only be considered as part of an overall financial plan and we would encourage you to speak with an Independent financial adviser, to ensure you have the right advice.
Want to find out more?
Jai is the founder and lead ethical financial adviser at Mindful Wealth. Based in the South east, using the latest in video communications (or a good old fashioned phone call!) he helps people throughout the UK manage their money ethically. He was trained by LIBF and is part of the New Leaf Network, the UK’s only truly independent financial services network. Jai passionately believes in making your money work for you.
Everything written here is intended as a guide, to inform and educate, and to generate discussion. It absolutely is not to be used in place of specific and personalised advice from a qualified financial adviser.