When we think of savvy finances, we rarely think that giving money away is the smartest thing to do. After all, shouldn’t you be using that money for something else – like building wealth?
The reality, though, is that well-rounded finances include an aspect of giving. And, believe it or not, giving your money away can be good for your pocketbook.
1. Giving Forces You to Get Your Finances in Order
One of the consequences of prioritizing your charitable efforts is that it forces you to get your own finances in order. If you want to be able to help your loved ones, pay your tithing, or give to a cause you believe in, you need to be financial stable. If you make giving a priority, chances are that you will need to look at your income and expenses, and acknowledge your cash flow situation.
Just as you need to plan in order to meet goals like funding a retirement, buying a house, paying down debt, and saving for your child’s college, you need to plan if you want to become involved in charitable giving. If giving really is important to you, you’ll create a spending plan that allows you to meet your charity goals.
2. Giving Makes You Happy
It’s hard to make the right spending choices when your judgment is affected by negative emotions. Few of us are truly happy with the way we use our money. That can change, however, if you decide to give. Studies indicate that spending money on others can make us happier than spending money on ourselves.
So, if you want to improve how you feel about your finances, you can try getting them in order and giving to others. When you take some of your money and spend it on others, you’ll feel more satisfied with the way you are using your financial resources. Your life will be happier, and you are likely to make decisions based on positive emotions.
3. Giving Has a Way of Coming Back to You
One of the great things about giving is that it has a way of coming back to you. For the religious, giving has the potential to open up blessings. Many major world religions include the concept of giving. If you are a believer, then chances are you have blessings coming your way when you give. You might not always receive great worldly riches, but many religious believers feel as though their needs are met when they take the effort to give generously.
You don’t have to be religious to feel the benefits of giving, however. Many of those who don’t ascribe to religious beliefs feel amply repaid when they give. The positive mindset that results in giving often leads to other benefits. When you are in a giving mindset, there is a good chance that you are in a place where you recognize opportunities and are prepared to grasp them. The organization required in having the resources to give often means that you are on your toes, looking for the right networking and career chances that can lead to improved finances.
While you don’t want to give away money that you can’t afford to part with, there is no reason to hoard your cash. You can improve the world through the application of your financial resources, and you can also improve your own life. Giving money away can help you boost your finances, improve your quality of life, and open your eyes to opportunities.
What do you think? Have you seen benefits from giving money away?