How to Detox Your Financial Life

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

Many investors share the common misconception that the sole purpose of investments is to make more money, or at least to preserve capital. They do not consider whether the companies or institutions they are investing in are in alignment with their values. I used to be the same way, and it’s easy to see why. We’re taught to believe that if the returns on our stock portfolio are increasing, then we’re doing things right. I’ve since realized that is a shortsighted perspective on finance. It is completely possible to grow your bottom line while leveraging your money toward the causes that you care about. Creating positive impact in the world and generating profit do not have to be mutually exclusive. When approached consciously and conscientiously, your money can make a tremendous difference for others and the planet.

A helpful way to reframe this is to think about money in terms of detoxification. In modern society, you can detox anything. You can detox your cleaning supplies of unsafe chemicals. You can buy organic food and natural beauty products. Many monitor the toxins and chemicals their children might be exposed to and eliminate them wherever possible. Thanks to Marie Kondo,we can even detox our physical space in a symbolic sense by learning to declutter the spaces we commonly occupy.

I have done my share of “detoxing” over the past twenty years, removing chemicals, pesticides, negative thoughts, and toxic relationships from my life. But my a-ha moment occurred when I realized that I could apply this to my money; I could “detoxify” it, so to speak, of the values that were inconsistent with my own. For years I had not considered this practice simply because I had not realized such an alternative was available. Now that I have, I’m passionate about teaching others how to detoxify their financial lives and lead a healthier, more meaningful relationship with their money. 

You Do Have a Choice

The choices available to us are more obvious in some aspects of life than in others. At the grocery store, for example, I clearly saw the choice between purchasing foods produced with pesticides and food produced organically. I always knew that the way I invested my money often went against my own values, but at the time, I mistakenly believed I did not have a choice. You may currently be in a predicament similar to mine. We talk so frequently about making better consumer decisions, but we don’t often extend that discussion to investing. But our consumer power applies to all facets of our money, not just the products on grocery store shelves. Traditional approaches to investing lack transparency and metrics systems for measuring more than the financial return of your investments. It’s hard to make better choices within a vehicle that can’t account for them. 

Often, the thought of detoxing your investments can spark concerns—specifically, that you might have to sacrifice in other areas, such as returns, wealth, or time, in order to achieve your detoxification goals. This is not the case.You can absolutely protect your return through impact investments. Even better, just the process of aligning your values with your money can leave you with a sense of fulfillment. Forget about loss.

In 2012, my good friend and Beyond Capital supporter Natasha Mueller was managing her investment portfolio, when an advisor presented an opportunity to invest in a solar park. Because it contributed to climate change mitigation and helped establish renewable energy as a viable investment strategy, the investment aligned with her values, so she chose to move ahead with it. To this day, that investment has been one of the best performing assets in her portfolio. 

That solar park was Natasha’s proverbial lightbulb moment as a conscious investor—the catalyst that helped her see the impact her investments could have. At the time, impact investing was only just beginning to attract attention. From that one investment, she was inspired to do more. Today, Natasha invests in companies that work toward improving global food systems, clean technology, education, the environment, mental health, and gender equality. The key to financial detoxing is to first understand your values, then back them up with whatever resources you have to create a positive impact.

Cultivate an Emotional Connection to Your Money

Often, the resistance to financial detoxing can stem from an inability to think of money as an emotional force. However, as I have learned over a decade-plus as a conscious investor, it is at the very least possible for an investment to spark joy—and not only from a returns perspective. Investing sustainably opens up your eyes to how much of a profound impact even the smallest amounts can have. The cumulative effect of small investments can add up to fight climate change, sustainably develop underserved populations, and eradicate neglected tropical diseases like malaria.

Right now, think about something you know and love. Perhaps your children or your partner come to mind. You might think of your home or a sentimental piece of jewelry. Whatever it is, hold that thought for a moment, and identify the emotions that come with the thought. Now, try to apply that same sense of emotional connection to your money. Try to consider your money in human terms, think of it in terms of the effect it has on others.

What does it feel like to direct your emotions in this way? Do your current investments inspire joy? If not, you have an opportunity to reallocate that money to a place where it will. It might take some work, but you can absolutely create that same emotional connection toward money that you have toward your spouse, your favorite ring, or your cat. 

Nobody wants to be in a difficult financial situation. We are all looking to advance ourselves and our families and live a comfortable life. Men and women of all socioeconomic backgrounds should feel empowered to ask more from their investments and put their money toward work that makes a difference. Investing in positive impact boosts your well-being, makes you feel good, and is one of the highest energy producers out there. 

Conscious investing factors in social and environmental returns, which tap into a core human desire: to belong to a larger community and to participate in society. Think of this as not just asking more of your money but also asking more of yourself. The feeling generated from conscious investing will have an impact on all other areas of your life. 

Understand the Impact Your Money Can Have

Fortunately, through my decision to become a conscious investor and witness firsthand the good my money could do, I learned to retrain my old thoughts and patterns around money. When you fully comprehend the impact that money, investing, and consumer choices can have, you become empowered as an investor in a way that few other passion projects or initiatives can replicate . For many investors, that you can expect more than return creates tremendous power to take action, set measurable goals, and exceed financial expectations.

We declutter and detox our lives to create better health and a sense of ease in our lives. The same is true of our money. Moreover, impact investing opens the door for more meaningful conversations about money among the gender divide, the generational gap, and disparate socioeconomic brackets. There are many types of wealth beyond just money;impact investing enables you to feed your soul, find peace, and create harmony, all while expanding your wealth in the traditional sense. 

For more advice on detoxing your financial life, you can find The Good Your Money Can Do on Amazon.

Eva Yazhari is a seasoned investor, entrepreneur, and CEO with sixteen years of experience working in the venture capital and asset management industries. She’s the cofounder and CEO of Beyond Capital, a pioneering impact investing fund dedicated to the belief that investing can inspire good and sustainably improve access to basic goods and services. She also co-hosts The Beyond Capital Podcast. Eva launched her weekly magazine, The Conscious Investor, in 2019. She has appeared in interviews with the lifestyle brands Goop and Thrive Global, and in Authority Magazine and Cheddar. She also has been a guest on numerous podcasts, and a speaker at family offices and impact investing conferences. Eva lives in Dallas, Texas with her family.