Retirement planning advice often recommends saving as much as possible, including maxing out 401Ks. But we turn into rich fools when we aimlessly accumulate more wealth without a plan or purpose. Like other financial goals, we should approach retirement intentionally with a specific goal in mind. That should include a financial finish line that guides contributions.
To celebrate the first anniversary of my journey of generosity, let’s play a personal finance game. I call it “Financial Independence vs. Radical Generosity.” In this article, I’ll weigh the costs and benefits of a $10,000 charitable donation against the impact the same dollar amount would have had on my personal finances. Through this exercise, I show that it’s possible to make room in your budget for generosity and not worry about your financial future.