2. DO SOME RESEARCH

Before investing, it might be a good idea to learn the basics of investing (SYW coming soon!) in the first place. You'll learn about the stock market, bonds, mutual funds, and garden gnomes. Once you've jumped that hurdle, the rest gets much easier.

Investing according to socially responsible guidelines is no different from any other stock investment - it just means a little more research. There are two things you must consider -- your financial objectives and your social objectives -- and then find a way to marry them.

Figure out your priorities

First, decide what your socially-oriented priorities are. This is the fun part and it's completely your decision.

Some issues are more popular than others. The table below beautifully displays how "screened portfolios" (money rejected under socially responsible guidelines) dealt with some popular issues. The higher the percent, the more socially responsible portfolios would accept or reject an investment purely because of that issue.

The percent of screened portfolios that look out for the following issues:

Issue Percent Reject companies that support the TOBACCO industry
97% Reject companies that support the GAMBLING industry
86% Reject companies that support the ALCOHOL industry
83% Reject companies that support the DEFENSE industry
81% Support companies that have a good ENVIRONMENTAL record
79% Support companies that demand HUMAN RIGHTS practices
43% Support companies that support LABOR issues
38% Support companies with a stance on ABORTION or birth control
23% Support companies with a stance on ANIMAL RIGHTS
 15%

Now we can't tell you what you should and shouldn't do. Just listen to your own personal Jiminy Cricket, and figure out what's most important to you.

Figure out your strategy

There are several approaches you can take about how to apply your second bottom line, most of which relate to how strict you are about a company's purity. For example, there is the take-no-prisoners attitude, where you screen with zeal for all offenders, no matter how minor the transgression. Another consideration is how far along the supply chain you hold companies accountable. If the company you invest in buys supplies from an offending company, would you still invest in it, or does the company have to be actively participating in the offense? Or you can take another more tempered approach and include companies under certain conditions. One condition could be that the company is the best in its industry for taking the most steps to cut down on pollution, even though it still pollutes. Like establishing your social issues, the standards to which you hold companies are also completely up to you.

Then come the financial considerations. As with any investment, you need to know your financial goals and have a level of risk you are comfortable with. For more specifics about general investment goals and risks, read our laugh-a-minute SoYouWanna learn the basics of investing? (coming soon!). Figure out if you have a high or low tolerance for risk, whether you are investing only in the short term or for 30 years down the road, and whether you want to actively manage your investment or let others do it for you (such as a financial advisor or a mutual fund manager).

A mutual fund manager picks a collection of companies to invest in which comprises a mutual fund. The most common route is to use a socially responsible mutual fund that, like any other mutual fund, bears a variety of risks. Some funds are high-growth and invest in companies that are less established or in emerging fields with the most potential to skyrocket. Other funds are more conservative and look for companies that have steady growth and continually meet their earnings estimates. And there are some funds that are not into stocks at all but prefer bonds, where interest rates tend to be lower but risk is also typically reduced. Still others are balanced, including stocks and bonds. There are mutual funds that only invest in domestic companies and others that are international, such as Calvert New Africa.

There are mutual funds that meet almost every investment strategy under the sun, and if you don't find one you like, there are ways to invest directly. But before you take the plunge, you may be wondering whether this is just a ploy to drain your savings or a genuine moneymaker. Read on.