Is giving part of your wealth creation strategy? If not, why not?
Money gurus Tony Robbins and Robert Kiyosaki are amongst those who advocate giving regularly as part of a holistic financial plan to grow your wealth.
On Robbin’s Foundation website, visitors are greeted with the headline; “The Secret to Living is Giving” with a long list of the charities that Robbins supports. That’s followed by a quote from Tony that says: “Only those who have learned the power of sincere & selfless contribution experience life’s deepest joy: true fulfilment.”
Kiyosaki advocates a tithing system similar to many churches, where you set 10% of your income aside for charitable causes. The bestselling author and investment enthusiast tells his followers: “If you want Money, you must Give money.”
It may sound a bit crass but Kiyosaki is also keen to emphasise that money isn’t everything and people don’t need as much as they may think to be happy. Kiyosaki says mindset is the real key to unlocking true wealth and reminds us that money is merely a means to an end.
The true meaning of financial freedom, he says is:
“The freedom to be who you really are and do what you really want in life. It’s about following your passion, making choices that aren’t influenced by your bank account, and living life on your terms.”
Wise words by both of these gentlemen.
When you are just starting out on your personal finance journey, the idea of giving away money seems to hurt.
When you can’t afford to put food on the table, you’re unlikely to empty your pockets to charity. That’s especially true if you have others who count on you.
Fortunately, money isn’t the only way you can help.
In my book Money Matters: Get your Life and $$$ Sorted, I include volunteering as one of the many ways you can give without emptying your pockets. Most charities and there are thousands in New Zealand alone, depend on volunteers to help them. And if you can’t afford to spend the day tree planting or packing food parcels, you can also allocate some time in your week to helping someone who needs it, whether it’s mentoring a new entrepreneur, coaching a soccer team, or helping a kid with homework.
Pleading poverty is convenient at times but seldom are there times when you can’t afford to give something, even if it’s a dollar.
There’s a wonderful story in Tony Robbins’ book “Unshakeable” where he talks about giving away his last five bucks, when he’d hit rock bottom with his own luck and finances.
A spiritual guy, Robbins believes in karma. He says simple acts of kindness are rewarded.
Back when I was a full-time working single mother, I winced a little at these strategies but I made room in my modest finances for some regular giving, a habit that I have kept up for more than a decade now.
Can you measure the effect? I don’t think that is the point.
Giving your time, energy, money or the shirt off your back with the expectation of getting rich in return is disingenuous. But if you do it to help someone who genuinely needs it, you are giving from your heart.
Most people who have committed acts of kindness will tell you it is almost a selfish act because not only does it feel good but there is a boomerang when you least expect it.
Bonus:
On the financial self-interest side, the taxman has your back.
In New Zealand, any financial gift made to a registered charity, including school donations, means you are eligible to claim 33.333% of it back. In this article, I explain how to do it.
Other helpful links:
A Memory Tree – A list of NZ Charities with links to their websites
Student Volunteer Army – opportunities
Inland Revenue – Charitable Giving
