Give & Grow Rich: Why Giving To Charity Is A Budget Priority

On this episode of How To Money, Matt and Joel talk about how giving away money makes us richer. People often think about charitable giving near the end of the year because they’re receiving bonuses, looking at their tax deductions, or because the annual nonprofit day of giving in December, Giving Tuesday, leads to a high volume of requests from charities. But Matt and Joel make the case that we should be thinking about charitable giving all year long, going over some of the best places to research charities, the various benefits that giving away money provides, and other ways to give if we are simply too purse-pinched this year to offer cash.

It’s not just the super-rich who can make an impact with their money, the guys say. Everyone should have a little charity built into their budget. Firstly, because it leads to greater health and happiness to see your money doing something good out in the world; but also, it creates a “healthy detachment” from our money. When we’re too inwardly focused on our own money goals, we run the risk of getting a little too tight-fisted. It’s important to cultivate a healthy relationship with finance in order to save and spend wisely, and part of that is knowing that having money just isn’t everything. Letting your money have a real impact in your community is incredibly fulfilling and worthwhile. 

Of course, it’s best to plan your giving. What needs do you see in society that you’d like to help meet? What organizations are doing meaningful work in that field? Vetting charities, especially large ones, is extremely important, so you know how well they handle their finances and what they actually spend your money on. And, of course, it’s important to make it a line item in your budget. Don’t just give money away randomly – set a percentage of your income that you’d like to give each year. Setting a percentage, instead of a dollar amount, allows your giving to fluctuate with your income and expenses, and putting it into your budget prioritizes that giving and ensures that you follow through. And if there just isn’t enough money in your budget to donate, think about what else you have to give: Time and skills. Charities are always in need of volunteers to engage in the work they do directly, and it gives you a chance to see how the organization operates from the inside. Charitable giving, whether it’s time, talent, or treasure, is a great way to give back, support meaningful change, and impact hundreds of lives; hear all this great information and much more on this episode of How To Money.

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