Over the years of observing people’s chosen money habits, I have seen a strong correlation between those who give and those who are successful. By successful I don’t necessarily mean that they are the richest or are making the most money. However, regardless of your “chicken and egg” argument about what comes first, generosity or success, there is a correlation.
Giving and donating are seen as foundations of financial stability
Just a few weeks ago I watched an interview with Dave Ramsey in which he reinforced his view that one of the 5 most important wealth building principles is being generous. He is not the only finance guru out there that touts this. Rich Dad, Poor Dad author Robert T. Kiyosaki also highlights the significance of this. I also throw my weight behind the importance of generosity. I’ve seen dozens of examples of people in my network over the years who struggle to make ends meet or who seem to have continued “bad luck” when it comes to financial issues. The common denominator with all is that they are not practicing generosity. When one chooses to live with a philanthropic lense something shifts psychologically that aids in personal financial growth. What are you giving, and to whom? Do you practice generosity? It has always been our (my hubby and I’s) practice to carve off a percentage of our income and set it aside to give. In a nutshell, the approach we take is that there is almost never a request that comes from a friend or family member that is raising money or has a significant need that we won’t contribute to. Not only does it all come back in financial and other blessings, but you get the intrinsic reward of knowing you made an impact. We have positively impacted the relationships of our family and friends by saying “I support you” and “I love what you are doing”. The need or the cause that we have contributed to financially is positively impacted because there is someone else saying “I will journey alongside this mission”. It is the ripple in the water effect. The impact of your generosity will ripple far beyond you. There is such unbelievable joy in giving.
Making philanthropy part of your lifestyle
If you have not tried this previously, give it try. Find an organization or cause that is meaningful or significant to you and what you value. There is no shortage of fabulous operations whose not for profit mission is to better the lives of others or the world around them. There is something you will find joy in throwing your weight and dollars behind. My best advice if you want to get started is to have a look at those around you who you know to be generous. Notice that they are highly likely experience success in a range of areas of their lives. If you have not incorporated philanthropy previously in to your financial plan, start with next month’s budget to reallocate a portion of the incoming dollars and having it on hand to give. Depending on what you donate to, you may just end up getting a tax receipt for the donation, reducing your overall tax bill. It’s a win, win, win and win all over again strategy. In closing, let’s deal with a comment that I often hear, which is, “I cannot afford to give and donate.” While there may be a very small portion of readers of this that could have some sort of financial crisis going on for extenuating reasons, if you are reading this you are rich. You are in the richest 1% in the world. Yes, I get it that the gap in the western countries between rich and poor is chasming. However, you have a lot of resources and you make a lot of financial decisions. You spend in discretionary ways at least to a point, on things that only the richest people in the world can spend on. Use your very best discretion and review your giving plan. May you be better positioned to be empowered in YOUR finances;
May you be empowered;
Shanalisa Keller is a CPA, CGA and Coactive Trained Coach who founded and leads the team at Canadian Finance Gal. She has a desire to make personal and business finances less daunting and confusing. She loves accounting and tax and wears the respective geek label with pride. When Shanalisa is not counting beans you can find her mixing a fun new cocktail or building a tasty charcuterie board. You can read her other blogs on various small business topics here, book a chat or coffee or wine with her here, or you can find her on LinkedIn (her favourite social platform).