By Dominique’ Reese
Wealth building is an active, conscience process that requires patience and sound and informed decision-making. I believe we all can possess these qualities, and therefore, we all can achieve wealth. However, there are also principles to wealth building and giving is one of them. I am not so sure that all of us are positioned to give, and therefore, not positioned to achieve wealth, although, we may have the qualities to do so. Giving is one of several wealth habits that simply breeds more wealth for the giver. And, I am not talking about giving your talent or your time, but rather your treasure. In this week’s article, I will discuss benefits of giving and how to start giving so you can begin to implement this wealthy habit and build wealth.
It is said that it is better to give than to receive. At first thought, one may think it is only better for the recipient. However, there are plenty of benefits for the giver as well. I have identified six benefits, to be exact. Givers can enjoy and benefit from:
1. A tax write-off. You will want to consult your tax advisor about the optimal level of giving that makes sense for your personal financial situation, especially if you take the standard deduction, compared to itemizing, when filing your taxes. Saving on taxes is a benefit we all would enjoy, I am sure.
2. Planting seeds of positive energy in the universe. When you do good, you promote positive energy, rather than negative. Being positive and living a life sustained by positive actions reinforces positive energies around you and through you.
3. Changing someone’s life. There is always someone on the other end of your giving. When you give, you ultimately change or contribute to changing someone’s personal well-being. In this way, you become a humanitarian and demonstrate that your deeds are not meant only to benefit your own life.
4. Good karma. While one good deed is sometimes all it takes, good deeds reap good karma. You never know what is waiting for you around the next corner. Most of us would want whatever it is to be favorable. Similar to benefit #2, reaping good karma involves your spirituality on many levels and may extend beyond you to your family, friends and loved ones.
5. Being an example and role model to others. When others know that you give your money to efforts, causes, and organizations, you spark within them feelings that drive their own giving. Even if that person decides not to give, you make an impression that they will remember because you do give. For others, you may motivate them to follow in your footsteps.
6. Wealth building. Giving your money to others, be it an individual, cause or organization, is a principle of building wealth. When you give, you will gain even more in return. Distributing your wealth makes it possible for someone else to contribute to society by improving their well-being and when that someone else contributes, we all are a little more better off. Therefore, simply put, you get a return on your giving, which inherently, makes you capable to give again.
Are you ready to start giving? Here are some strategies that I use with my clients (as well as personally) when building their giving strategies and positioning them to be givers so they can build wealth:
- Consult your budget to determine how much you can afford to give comfortably and confidently. Consider reducing and/or eliminating expenses to be able to incorporate a giving strategy into your budget. Don’t succumb to the excuse that you cannot afford it. You can afford whatever you decide is worth your money.
- Give at least 10% of your after-tax income. If you can’t start off at 10% do whatever is comfortable for you and ramp up with time.
- Give to causes and organizations that you are passionate about, have a relationship with, have benefited from or simply have an interest in. When you establish an emotional connection to the recipient of your gift, you will feel the power of your giving.
- Submit checks when you give. I like to have paper trails for my giving. Just in case I need documentation or proof of my giving, I’d rather be able to request from my bank, a physical copy of the check I wrote, rather than have to scour for an electronic funds transfer, debit or charge on my debit or credit card statement.
- Give often. Once you determine how much you can afford to give, divide it by 12 and give monthly. However, if you prefer to give larger gifts less often, consider quarterly, semi-annual or annual giving.
Giving your hard-earned money may not come as easy for some as it will for others. However, it’s something we should strive to do if we want to build wealth. Wealth builders will indoubtedly, incorporate this habit into their financial life, sooner than later. If you’re feeling challenged to give, but don’t know where or how to start, email me at firstname.lastname@example.org. On the other hand, if you’re ready to give, enjoy the benefits of giving and build wealth, join me and other wealth builders, so you receive the motivation, inspiration, tools and strategies to master your money, so you can continue to give.