English
Achieving financial independence while committing to a better future is no longer a pipe dream. Find out how Birdee helps you achieve this goal
Financial independence refers to the time when your investments earn more than your expenses. To achieve this, your money can be placed in different media, such as the stock market, savings accounts, life insurance or real estate. But do all the returns have to be counted in euros? Could financial and ethical investment not be reconciled? With Birdee, everyone has the right to access investment, and therefore realise their dreams, while following a responsible, virtuous and united approach. In other words, more humane!
The world has gone through and is still going through shocks that have highlighted the limits of an economic system that has come to the end of its life. The 2008 and 2020 financial crises, coupled with the pandemic crisis that we have been experiencing since early 2019, have revealed ethical shortcomings that have prompted investors to ask themselves this question: does morality have a place in finance? The answer is yes, triple yes!
Birdee also emerged from this idea that your savings can be invested in portfolios that generate performance as well as confidence, by contributing to the sustainability of the global economy. This request meets a need that is increasingly present in our contemporary societies: the "quest for meaning".
However, as the saying goes, money has no smell. But on the other hand, it has a power, that of changing things. It's cynical, but you have to keep your feet on the ground if you want to be a game changer. Contributing to improving people's living conditions, reducing the carbon impact of human activities on the planet and fighting against the disappearance of natural habitats will not happen without touching the very foundations of finance, which is a central cog of the real economy.
Financial independence begins with little things
You too want to take action in this direction (otherwise you would not be here!). And the same question often comes up: where to start? Let's begin by breaking an old myth: salary isn't everything! Of course, if you have a high salary you will have more opportunities to be financially independent, but you will also be dependent on a single source of income.
This is also one of the basic arguments of investor and professor Robert Kiyosaki, author of the bestseller "Rich Dad Poor Dad", who says it is essential to have "passive income" to build wealth, such as:
- Dividends from a stock market security,
- rent from leased property,
- gains obtained on investments (such as life insurance or a savings account).
Exactly what Birdee offers! We offer investing as little as EUR 50 in life insurance policies and securities accounts comprising on average 82.5% of securities which contribute to a better world. Because we are like you – eager to take action and wanting to work for a better world. And we are not the only ones, since for 7 out of 10 French people, taking social and environmental criteria into account in financial investments is currently a "communication argument rather than a reality" (AMF 2019 study).
Sustainable finance keeps all its promises
It's no secret – becoming financially independent can sometimes take time, and is a process that requires patience and that should be put in place as early as possible. So you inevitably wonder if putting your money in ethical and sustainable portfolios is the best solution. Are they going to be performing well enough or would I be wasting my time? We reassure you right away! The financial performance of SRI funds that meet the three ESG criteria (Environmental – Social – Governance) are equivalent to non-SRI investments, and even more resilient in times of economic uncertainty.
By choosing to invest in an SRI fund, you will be taking not just one but two steps toward your future financial independence:
- You will fund causes that speak to you and in which you want to have an impact (social, environmental, health-related, etc., values)
- You will have a return that is both solid and accessible (from as little as EUR 50 for our life insurance and securities account products)
- You will invest according to your profile and your risk tolerance (defensive, moderate, stable, protective, dynamic)
Not sure what level of risk you are ready to accept? No problem! Before opening an account, Birdee offers a short questionnaire that will rank you among one of our five predefined investor profiles. Learn about them here.
Financial independence: a matter of will!
Investing responsibly is an important step towards building wealth worthy of the name while creating positive added value for the environment and society. But as we explain to you in more detail in our article on the FIRE method, financial independence also involves a "re-education" on your relationship with money. If only one word needs to be remembered, let it be this one: savings!
One of the most common money problems people face is living beyond their means. But wealth is not measured by what we can spend, but what we can save. Be aware, we are not saying you should no longer think about yourself (we all succumb sometimes!) but rather to sort out your expenses and change your consumption habits intelligently.
Create an expense budget (who knows exactly how much they are spending each month??), and put the 50/30/20 rule in place as soon as possible. This method should encourage you to allocate your money as follows:
- 50% for your compulsory and vital expenses (rent, electricity, insurance, fuel, taxes, etc.)
- 30% for leisure (vacations, restaurants, gym membership, etc.)
- 20% for savings (home ownership savings plan, life insurance, savings account, share savings plan, etc.)
While it may seem confusing at first, the 50-20-30 concept can be applied quite simply, especially the part reserved for savings. Setting up automatic transfers at the beginning of the month to save/invest allows you to be rigorous and really feed the means by which you can have a passive return and contribute to growing your wealth. With Birdee, you can easily schedule your transfers to fuel your sustainable and responsible portfolios and, we hope, one day achieve the much sought-after financial independence while giving meaning to your money!
