Although I write a lot about charitable giving on The Rich Fool, a generous life calls for more than monetary donations. A good friend reminded me recently that charity is just one “currency of generosity” — and perhaps the easiest one. If you want to grow in generosity, it’s critical that you stretch outside your comfort zone and give in new ways. Here are the six currencies of generosity.
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.
Radical generosity is a journey that starts with small steps, and I don’t want to ever make it feel impossible. It’s an attainable personal finance goal, regardless of income, but it requires vision and an intentional approach to budgeting that creates room for increasing levels of giving over time. Here’s how you can make room for charitable giving in your budget and climb the ladder of generosity.
As I developed The Rich Fool, I attempted to create a giving formula. I wanted to create a framework that would introduce discipline in climbing the ladder, encourage spending limits and discourage over-consumption, and make unnecessary barn-building difficult. I was excited about my new giving framework, until I actually attempted to put it into practice. I soon realized I was trying to create a formula for something that should be a heart issue.