This is a response to the plonkee money competition, which asks…
How does donating to charity improve your well-being, financial and otherwise?
I’m going to make a comparision here, and some people aren’t going to like it: putting money into a charity is just like putting money into your retirement. In both cases, you’re taking money away from yourself to help a stranger that you’ve never met. I, sitting here at age 20, have no idea who 50-year-old or 60-year-old Stephanie will be. I have no idea what she’ll be doing, and what she’ll want to do with her retirement funds. But I hope to give her money, anyways.
And it’s the same with a charity. I have no idea who the breast cancer patients are that I donate to, but I donate to them all the same. And for the same reason as I “donate” to my future self: because that person needs that money, and will be greatful for it. I am trying to create happiness for a stranger.
And they say you can’t buy happiness!
So if contributing to my retirement helps my financial well-being, then contributing to charity does, as well.
You could even take it one step further and say that the money your donate to breast cancer research could easily help you in the future if you find yourself diagnosed with it.
Peter Mottola says
Don’t forget tax write-offs. They’re worth something.
And as someone entering the Seminary I exhort you all, please, tithe to your local church. 🙂
Well said, Stephanie. #1 rule of personal finance is to pay yourself first! Even if it doesn’t amount to much, it will eventually add up.
Managing personal finance is really tough. Stephine, Great nice one to read.