How to Define Your Values and Invest for Impact

The following is adapted from The Good Your Money Can Do.

In 1959, my paternal grandfather moved my dad and his siblings from the United States to Tanzania to establish a health clinic. Back in the Midwest, my maternal grandfather, Edward Bonior, was also involved in poverty alleviation and economic development. He was a World War II veteran, stood at six foot four inches tall, and was in charge of the Office of Economic Opportunity as part of the War on Poverty, a legislative agenda created by Lyndon B. Johnson. 

As an investor and entrepreneur, my path has been quite different from that of my parents and grandparents. But over the years, I have independently examined each of the values I was raised with and can confirm that they are equally as important to me and my work. The best example of this is their commitment to service. Above all else, my family taught me to contribute beyond myself and to make strides for equality and justice.

That is why I support job creation for women in India, access to basic healthcare for women in East Africa, and innovative basic goods and services businesses in the Beyond Capital portfolio. And it is why I’m always looking for what more my portfolio can do to have an impact—because clearly defined values help me see the path towards better value-aligned actions and investments.

Defining your values up front is the most important step in becoming a conscious investor, and will yield better results than any other step along the way Read on to learn how to discern your values and contribute to impactful causes through your investments. 

Discerning Your Values

The values that drive us to do good are different for everybody. To begin defining your own values and areas of focus, start by examining your upbringing. It is likely that what you grew up caring about—and what your family raised you to value—will have shaped your current beliefs. 

While family values are a useful way to understand the forces that shape your values, your lived experience is another defining factor to consider. For instance, I have been aware of my privilege since childhood. The daughter of two teachers and working artists living in New York City, I grew up in a neighborhood where there were few other white families. It was clear to me that I and my parents were different—not just because of the color of our skin, but because of the privileges we were afforded as a result. I had the bigger house, I had the better-quality education, and I had the parents with better access to borrowing who could help fund my Ivy League higher education tuition. 

Seeing what I had access to that many of my neighbors did not—recognizing my privilege—left me with the profound feeling that society should be different. As a result, I formed the core belief that it was my responsibility to seek equality and justice for all. This also led me to believe that others with privilege have a responsibility to be conscious as well. 

Defining values does not have to be laborious or difficult. Simply think about the experiences, beliefs, and relationships that have had a significant impact on your life. Ask yourself what excites you. Think about the different areas, places, and people where you are already committing your money and time. Pay attention to the days where you feel energized, motivated, and ready to get out of bed and get to work. By evaluating these emotions and actions, you can dig deeper into who you are and what you value. When you understand what drives you to do good, you can let those same values drive your investments. 

Be Specific about How You Want to Make a Difference

Impact investing is a real industry with real opportunities, which means it offers many choices. Be as specific and focused as possible when defining your values. Broad themes like gender equality can be expressed in different ways or in different investments—for example, women on boards, women-run businesses, companies serving female consumers better with products and services, businesses employing women, more businesses with good maternity leave policies, and businesses with pay parity between men and women. 

It isn’t until you start to unpack a term like “gender equality,” that you see the breadth of what it encapsulates To account for this, try taking a more thematic approach to impact investing by dedicating a large part of your portfolio—or even your entire portfolio—toward a particular social or environmental theme. This approach is known as thematic impact investing. The more specific you are with your values and areas of focus, the easier it will be to make effective choices and apply that theme to your entire portfolio.

For instance, while a theme of gender equality might present an unmanageable number of options, searching for companies with a high percentage of female employees, access to quality daycare centers, or a good family leave policy, will produce a much narrower list of opportunities. Plus, focusing on these specific themes will ensure total alignment with the broader theme of gender equality. 

The more you live according to your values, the more they become a lens through which you view both the world and your investments. Just keep in mind that it does not all have to happen at once. Many impact areas are intertwined, sometimes in surprising ways (climate and women’s empowerment is a good example). So, reflect, grow your awareness, begin learning the language of conscious investing, and let the process unfold from there. 

Get the Ball Rolling

Purpose has a captivating, almost magical quality to it. We all know the feeling of sitting down to work on something exciting or important for just a bit, and then discovering that the minutes flew by and it’s now hours later. That is what living according to your values feels like. It does not feel exhaustive or impossible, because it’s a completely personal journey. Your goals may seem insurmountable to others, but your passion and excitement will provide you with the drive you need to achieve them.

There has never been a better time in history to define your values well, and to commit whatever it takes—be it money, time, energy, or relationships into value-aligned investments. I think it’s safe to say that there have also never been as many opportunities to address social problems as there are right now; Creative, innovative solutions have never been more accessible, and awareness of access gaps and injustices are now more present in our minds than ever before. You might not naturally find yourself living according to your values just yet, and that is perfectly fine. It is enough to know that this is a paradigm shift and a lifestyle that is available to you. 

If you’re intrigued, then start—anywhere. As soon as you get the ball rolling, it will feel more natural, free, and even fun to be connected emotionally to your money and know that it is working in ways that make you feel good.

For more advice on defining your investment values, you can find The Good Your Money Can Do on Amazon.