We are joined by one of Maggie’s best childhood and adult friends, Erica.  Erica has been curious about values-based investing for years, and when she posed several questions to Maggie we thought it’d be fun to bring her on this podcast for the discussion.  What is values-based spending?You may see a lot of different definitions of this out there.  To us, values-based spending or values-based budgeting is the idea of spending your money in alignment with your values and priorities.  To do this, you need to be clear about what matters to you.  And if everything matters, then nothing matters.  Prioritize what matters to you and what you care about.  Set up your budget and spending practices in those areas, and reduce your spending in other areas.  Our thoughts on values-based spending:It’s important!  Everyone should do it.  We do it.  This is why tracking your expenses matters.  If you don’t know where your money is going, you can’t put in the work to align it to your values.  Do you value travel?  Great, then it’s OK to spend more money on travel.  Do you value fast food and random crap from Target?  Cool, well then quit spending money on fast food and random crap from Target.Budgeting vs. Tracking Expenses episode reminder.  Tie values into either approach.  What is values-based investing?We define values-based investing as making financial investment choices based on your personal values and views, vs. just a company’s performance.  This could mean looking at a company’s product, actions, or leaders and seeing if they align with your values.There are company’s you believe have a positive impact on the world, from our culture to society to the environment.  There could be company’s you think are indifferent and company’s who are doing damage.  Values could include your faith, health practices (e.g. we’re vegan and don’t want to support the meat industry), climate change, environmental policies, human rights, diversity/inclusion, etc.  Values-based investing could mean screening more things in, screening things out, or both.  Most banks or trading firms will offer recommendation or lenses on this that you can research more:Betterment markets some of their funds as “With our new and improved Socially Responsible Investing Portfolios, you don't have to choose between investing in companies whose values align with yours and your performance goals.”Fidelity will let me screen ETFs for various factors, and one is a socially responsible screen.  There are 101 ETFs across multiple categories I can drill-down into.   Other funds include: NACP, SHE, and WOMN.  When we researched these funds and looked at the individual stocks within them, they look very similar to top S&P 500 firms.  Judge for yourself, but we think you’ll be surprised to see what’s in these funds and the how low the bar is set of what makes it in to the fund.  Vanguard ESG US Stock ETF (ESGV): screened for certain environmental, social, and corporate governance (ESG) criteria.  Invesco Solar ETF (TAN): First Solar (FSLR) and SolarEdge Technologies (SEDG), TAN is a way to invest in the solar energy trend without going all-in on a single companyOur thoughts on values-based spending:It’s important to understand how investing actually works, before you start to tie your values to it.  A company exists to create value for its shareholders.  Everything in life is a trade-off, and so is values-based investing.  You’re trading off profit vs. you feeling good about something.  That’s a personal decision.  Diversification is always an important consideration.  It’s not an OR thing, it’s an AND thing.  Perhaps I want to start moving more of my money into the company’s who’s mission and beliefs I align with.  I buy so few individual stocks this is less applicable at times.  I want to invest my money in a location that’s going to perform decently and not ruin the world.   It’s all about continuums and scales (e.g. I won’t do this as it’s so far against my values, but I will invest