Money

Why Giving Money Away Is the Best Thing You Can Do For Your Finances

July 20, 2016
Giving away money can seem counterproductive when you want to reach financial independence. But it's not. This article explains the benefits that come from being charitable.
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Today we have a guest post from a friend and fellow personal finance writer, Sara. If you’re interesting in guest posting at LAAB, check out our guest posting policy. Enjoy!

Yes, the true path to monetary wealth is saving money, but giving money away can be just as good for your bank account.

In fact, some of the richest people in the world are some of the most charitable. Now you may not have millions of dollars to share, but spreading your wealth truly does help your finances.

Not a believer? Here are some ways giving money away is the best thing you can do for your finances.

You Get More Conscious About Your Spending

Let’s say you plan on donating $100 to a charitable cause. Most of you might think about this decision a lot longer than, say a daily coffee habit.

I know for me, when I decided to start donating regularly, I was curious in what other ways I spent my money. Turns out, I had a bit of a junk food habit, which I eventually eliminated so I could use that money to donate monthly. Being healthier, saving a bit of money AND helping others. I say that’s a win-win situation.

Try something like adding in a “donation” section in your budget. It’s a really good excuse to review your spending decisions. You never know, you might find a few money leaks or even other ways to cut your spending, helping you save even more.

Giving Money Away Makes You Think More About Others

You’re probably thinking how thinking about others increases your wealth.

Helping others monetarily gets the ball rolling on thinking more about others. That’s not to say you don’t already think about other people. Rather, you start to think of what you do (in this case, giving money) as providing a solution to someone else. And the more you give money away, the more you practice thinking about others, and it will easily translate into other parts of your life.

Need proof? If you’re a business owner, you can’t be successful unless you provide a valid solution to others (and it’s something that your customers want). The more you practice thinking about others, the more you come up with creative and unique solutions for customers and clients. And that translates into money in the bank.

Have a day job? That can help you too. Thinking about others might mean finding more efficient solutions to do daily tasks, freeing up to your time to take breaks, or even help you eventually earn that promotion.

It might even improve your relationships. And better relationships means your mental health improves, which could translate into less spending when you’re stressed or emotional. And improving your mental health can also mean fewer health issues (which translates into medical expenses) down the line.

How to Start Sharing Your Wealth

Even if you don’t have a lot of money, you can still be charitable and adhere to your budget. Think about buying a cup of coffee or a hot meal to a homeless person you pass by, or even $10 a month is really helpful towards a lot of causes, such as the SPCA or random GoFundMe campaigns. You can even do something small such as buying a few extra cans of food to donate to your local food shelter.

To practice what I preach, I’m offering $50 for you to donate to any cause of your choosing. All you have to do is head over to my blog, and sign up to win. This contest is open until August 5th and I’ll announce the winner on my newsletter (pssttt…it means you’ll have to sign up for that too).
Good luck!

 

Sarah Li Cain is a finance and education writer who believes that having a better relationship with money should be everyone’s priority. She blogs over at High Fiving Dollars where she shares positive money mindsets and how to achieve wealth in every sense of the word. Oh yeah, her son thinks she’s pretty cool too.

 


Thanks, Sarah!  Do any of you experience all the feel goods and benefits that come along with giving? Make sure to head over and enter her giveaway!

 

Giving away money can seem counterproductive when you want to reach financial independence. But it's not. This article explains the benefits that come from being charitable.

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Latoya Scott
Writer/Creator
Latoya is a writer for hire who loves talking about budgets and money. Her mission includes paying off $79,000 in student loans and aspiring other millennials to hustle their way towards financial freedom. Her work has been featured on The Huffington Post, Rockstar Finance, and My Fab Finance.

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5 Comments

  • Reply Chonce July 21, 2016 at 12:29 pm

    I do believe there is lots of value in giving to others. It’s hard for me to do since I’m in debt, but you mentioned some great ways to give even if it’s only a little. Plus, I try to give to others by means that aren’t monetary whether it’s my time or my skills.
    Chonce recently posted…My Top 3 Tips for Freelancing SuccessMy Profile

  • Reply Carrie O. July 22, 2016 at 3:46 pm

    Just a heads up that the link to the contest sign-up wasn’t working when I tried it.

    Our family believes in tithing and we’re trying to raise our kids to be givers too. It’s definitely hard sometimes to part with the money (when my “worldly” brain thinks of all the “other” things it could go toward 🙂 . But I tell our oldest son that one of the side benefits of tithing is that it keeps us from getting too attached to our money (which we believe is ultimately God’s anyway…we’re just trying to be good stewards of it on earth).

    Our 15yr just got his first job and is struggling a little bit with the idea of tithing 10%. But, as a result it allows for open and honest discussion on the topic.

  • Reply NZ Muse July 27, 2016 at 7:11 pm

    Nothing feels quite as good as giving to a cause you believe in.

    Maybe coincidence but I often find that I get little unexpected windfalls one way or another around the times that I donate to charity. The universe in action?
    NZ Muse recently posted…Does your budget reflect what you value?My Profile

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