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).
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!