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How Social Impact Investing Is Changing the Paradigm of the Working Poor

Refuge InvestmentsJanuary 4

How Social Impact Investing Is Changing the Paradigm of the Working Poor

In 2019, 10.5% of households in the US reported they’re living in poverty. 

Those who experience poverty lack the finances to adequately provide for themselves. They may not always have full meals or enough money to buy clothes for their kids. 

Poverty may be due to generational cycles, job loss, or sickness. No matter the cause, the community should rise to help the poor. One meaningful way people are doing this is through social impact investing. 

You’re probably wondering exactly how social impact investing is affecting the working poor. Keep reading below to find out. 

What Is Social Impact Investing?

Social impact investing describes committing money with the specific intention of creating measurable improvements for humanity. 

While some social investments can be viewed as philanthropic (donations, with no economic return expected) this article supports the reality that many other investors have proven, that socially conscious investors can make great financial returns on their equity while also bringing tangible benefits to struggling families. 

A prime example of social impact investing you might notice in your community is real estate investing. This type of investing might look like upgrading and renovating low-income housing creating healthier and safer neighborhood environments. 

Does It Really Matter? 

It’s important to understand why social impact real estate investing is important. 

Abraham Maslow’s hierarchy of needs asserts that humanity’s physical needs for food, water, shelter, security and safety must be attained before we can develop our psychological needs of relationship and intimacy.  Without fulfilling these basic human needs, it is impossible for families to develop to their full potential.

Through skillful and deliberate property upgrades, impact investing can shift the paradigm of the working poor. The significant impact of safe and affordable housing has proven to increase the quality and health of a family, providing hope and relieving a large burden of stress experienced by many today. 

By decreasing the number of external stressors, people are better able to focus on other activities such as their job or family. Allowing them to invest in their families future and create more stability.  

Is That All?

We believe social impact investing stretches beyond just the real estate investment benefits. It also helps promote broader community improvements. 

Some benefits of a safe and vibrant community resulting from impact investment can include community events, job fairs, classes on single-parenting or how to improve credit scores. These opportunities give community residents tools to find better jobs and build their finances and strengthen their families. 

Communities, as a whole, have their confidence boosted. It’s empowering to use new tools learned to create your own success story. 

Investors will see returns as these communities start to rebuild. Residents will become more permanent while becoming financially stronger themselves, knowing their neighbors and trusting their landlords. This creates more stable rental income for the investors and more energy that can be funneled right back into the community. 

Investing in the Community Around You Matters

Social impact investing is something not many people have heard about, but it’s something that can greatly impact many struggling people. 

You can help give power back to the community through neighborhood renovations and thoughtful community interactions. All of this aids in breaking the poverty cycle, creating tangible opportunities for growth for the working poor. 

Are you interested in making a difference as a real estate investor? You’ve come to the right place. Check out our site for more information, and invest with us today.

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