It’s better to give than to receive. We’ve heard this timeless advice so much that we’ve forgotten its impact. In this third and final installment of our Joy of Generosity series, we’re here to revive it.
It turns out that altruism has benefits backed by science. An abundance of research shows that altruism — or the act of giving to another at the expense of yourself — actually releases the happy hormone, dopamine, in your brain. So when you give, your body literally rewards you with a positive impact on your well-being, including mood, satisfaction, and sleep.
Despite the benefits of altruism, it can be difficult to balance being financially responsible and being generous. We all have a lot of responsibilities and maybe worry a bit about securing our future, and that can get in the way of being generous in the present. However, it’s normal to feel conflicted about when to spend your money and when to hold onto it.
Today, we’ll talk about how to experience the joy of generosity while still staying on track with your financial goals. We’ll also talk about how to shift your money mindset in a way that will allow you to feel more fulfilled and less fear filled.
The balancing act
As we discussed in the first two installments of this series, strategy is key — no matter where you are in your financial journey. If your biggest hurdle is making sure you have enough to cover your own needs, you’re not alone, and there are still many ways to give back. On the other hand, if you’re at a place where you do have disposable income, you might struggle with wanting to part with it. That’s where an important distinction comes in: saving versus hoarding. While saving aligns with positive feelings of comfort, flexibility, and contentment, hoarding fosters stress, anxiety, and perpetual discontent. It’s important to recognize the line between saving for practical reasons and amassing money aimlessly. So let’s break it down.
Saving
When you save money, you’re likely to experience any or all of the below.
Comfort: Having a healthy savings, which includes an emergency fund, allows you the ability to enjoy life as you see fit.
Goal achievement: Saving is often associated with a goal — maybe it’s a house, a vacation, or a new car. Saving toward those goals gives you a sense of meaning, purpose, and accomplishment.
Contentment: Saving up simply makes you feel good. Having a nest egg affords the flexibility to enjoy yourself and avoid added stress.
Hoarding
On the flip side, being overly concerned with saving money can do the opposite of what you intend: invite more stress!
A hoarding mindset compels you to believe enough is never enough. You may experience increased anxiety when making significant purchases, even when you can easily afford them. This isn’t a healthy relationship with money; it’s a fear-based fixation.
Now that we’ve examined the differences between saving and hoarding, including how they both impact your overall wellness, let’s move on to talk about some of the benefits you can experience from practicing joyful generosity.
Benefits of altruism
We’ve already talked about that mood boost you can experience when you give, thanks to that happy hormone, dopamine, but the benefits of generosity also extend to the more practical side of life.
Tax benefits
A nonprofit organization is a business entity whose primary mission is not to make a profit but rather to further a cause. These organizations can file for a special tax status, which allows individuals and businesses to donate money to them while receiving a tax break. The tax break is basically the government’s way of acknowledging that individuals working together with private organizations can do the most good with their money, so charitable contributions are highly incentivized.
Helping others
Generosity goes beyond personal satisfaction; it meets the needs of others. Your contributions can make a tangible difference, including the below scenarios:
- Provide clothing, transportation, a hot meal, or a place to sleep for someone who’s fallen on hard times.
- Prevent an animal from being euthanized.
- Keep a house of worship’s doors open.
- Help a parent provide for their children.
- Support a foster child.
Financial planning for altruism
Incorporating generosity into your financial plan requires thoughtful consideration. The joy of generosity is about balance — working with what you have to achieve your financial goals while also being able to enjoy the fulfillment of giving. By ensuring your own needs are met first, you’ll be able to do more good in the world with the overflow.
The takeaway here is to stick to your budget. If you don’t have one, do that legwork first. Then go back, review, and see how much you can allocate toward charitable donations, and don’t go over that amount. This will keep you on track with your financial goals.
What money can’t buy
You can buy lots of things with money, but eventually those things lose their luster. The most fun and fulfillment from money turns out to be the act of giving it away. The ability to bless others — whether financially or with your time — will have the greatest impact on your life, spiritually, emotionally, and even physically.
In the pursuit of financial freedom, incorporating joyful generosity can elevate your overall well-being. May your journey inspire you to pay it forward!
The Joy of Generosity is a three-part series that takes a deep dive into an impactful aspect of your financial wellness. If you need guidance on your giving journey or want to learn how to incorporate charitable giving into your financial picture, we invite you to take our course The Joy of Generosity on the Sqwire Financial Wellness platform. If you don’t have an account with Sqwire, ask your employer about adding Sqwire Financial Wellness as an employee benefit.