When talking about financial planning, we are used to thinking about how much we should spend, how much debt to pay off and how much to save.
But, what about setting aside money to give? This can be controversial if you are facing student loans, still looking at credit card bills or have a car payment. And what about thinking of retirement! Shouldn’t all your funds go to those efforts? Yes, a large portion of your income should be concentrated on appropriately spending and saving, but giving back can be a part of your plan to.
Give, Save, Spend – Financial Peace University founder, Dave Ramsey, offers this great advice to parents to help their children learn the humble art of giving back. It’s simple. When you receive a pay check, or even your allowance, have three places your money will go. Money to give, save and spend. Mr. Ramsey shares that he started teaching his children to give 20%, spend 40% and save 40%, but the percentages are up to you and your comfort level.
No Amount is Too Small – Say you only have 1% you can give of your monthly income. It is tempting to say, “That amount won’t make a difference, so I will just spend or save it.” Not true! Even donating $25 a month to non-profit organizations moves the needle, and most importantly, it will make you feel good about yourself and your personal spending. Give what you can when you can!
Create a Plan and Stick to It – Now you have created your plan to give a certain percentage of your income to charity. What comes next? Create a plan of who will be receiving your gifts, how you plan on giving them and when is the best time for you to give. Having a giving plan also allows you to do the very hard task of saying “no” when a financial gift to a non-profit doesn’t feel right. And, remember, giving of your time is money too!
In August, Businessolver is celebrating Financial Awareness Month and the Foundation is proud to support several organizations working to help people become financial sound. Junior Achievement, EVERFI, Habitat for Humanity, Girl Scouts of America and Big Brothers Big Sisters are just a few examples. Giving back is a core value of our business and it is easy to include it in your daily life and budget!
Find out more about the Businessolver Foundation here.