If you're still managing finances the old-fashioned way, you could be missing an important opportunity to invest in the future of the planet.

A report from Javelin Strategy & Research (Javelin) described the financial paper chain from U.S. households as long enough to stretch around the globe more than 200 times. Consider the benefit of those households opting for electronic bill paying and banking! According to another Javelin study, "2007 Online Banking and Bill Payment," all-green financial transactions could:

• Reduce as much greenhouse gas as removing 355,000 cars from the road
• Save enough energy to supply electricity to all San Francisco homes for one year
• Eliminate enough solid waste to fill 56,000 garbage trucks

Being green is easier than you think
Green financial practices provide practical benefits, too. Online financial management minimizes office clutter and gives access to tools fostering efficient money management.

• Online banking. Use electronic statements and debit cards to conserve paper and save time. You can track balances in real time on your bank's website and transfer funds from your desktop. If a debit card isn't your style, order checks made from recycled paper. Enroll in direct deposit; it's easy and paychecks clear faster.
  
  
• Electronic bill payment. Arrange online payments through bank or service providers, including public utilities and mortgage and credit card companies.
  • With bank bill pay, enter what you owe monthly on your bank website; the bank transfers funds from your account to designated payees.
  • The alternative setup works similarly—except you make payments from provider websites. Many vendors offer automated bill payment, which saves time and can prevent late fees.
    
    
• Playing it safe. Although tales of phishing scams and Internet security breaches scare us, according to the aforementioned Javelin report, we overestimate the risk of online fraud. About 90 percent of identity thefts begin offline—with acquaintances or family members stealing bank statements or computer passwords. Nevertheless, public perception of increased risk has led financial institutions to install the highest possible level of data protection.
  
  Still, you should be vigilant. Report unexpected changes in your account immediately, and read online financial communications carefully. Regardless of how official a message looks, never respond to e-mails requesting:
  • Credit card numbers
  • Computer passwords
  • Other sensitive information

Smart green investments might benefit your financial health
The number of options for supporting green business practices has grown steadily in recent years. Before modifying investment strategy, however, do your homework.

First, meet with your financial advisor. Explain your environmental concerns and financial goals; then, discuss how to achieve balance between the two. By coupling industry knowledge with an understanding of your priorities, an experienced advisor can help ensure that your investments are consistent with all your objectives. He or she can tell you about investments designed to exclude companies that harm the environment and help you screen existing investments. When evaluating your portfolio, consider:

• Which companies make the biggest contribution to the environment? Firms show their commitment in several ways:
  • Manufacturing eco-friendly products
  • Developing new energy sources and environmentally sound technologies
  • Donating to environmental initiatives
  • Instituting energy conservation, waste reduction, and other green practices in the workplace
    
    
• Who needs to clean up their act? Send a message with your wallet to businesses that dump toxic chemicals in waterways or poison the air with carbon emissions.
  
  
• Where can I have the most influence? Investing in companies that don't meet your standards can gain you a say in their policies. Organize with like-minded shareholders, express your views at annual meetings, and vote in proxies. Or choose a socially responsible investment vehicle that performs these functions.

Every little bit helps
The following list highlights additional ways to make your financial life a little greener:

• Go digital. Send electronic invoices, customer service inquiries, and other financial communications whenever possible. Save financial information to PDF files to eliminate hard copy waste.
  
  
• Think before you print. If printing a hard copy is necessary, save it and use the other side for another document.
  
  
• Keep it clean and safe. Avoid toxic waste and encourage paper mills to develop eco-friendly practices by buying chlorine-free paper. Changing from petroleum-based inks to products with a soybean or linseed base decreases pollution.
  
  
• Stop preapproved credit offers. Opt out of credit offers online at www.optoutprescreen.com or call 888.5.OPTOUT (567.8688). Say no to junk mail at www.dmachoice.org.

Going green deserves thoughtful consideration in light of your own objectives—not every option outlined here works for everyone. Consult your financial advisor—and your conscience—to decide what makes sense for you.