Personal finance has many facets. The personal finance community is great at acknowledging the basics, but some things slip through the cracks. I think charity and giving should be a consistently discussed part of personal finance. Not only that, but I think that those who have the means should take part in it whenever they can.
I’ve come up with some ways that you can make donating a part of your personal finances. Whether if you can on occasion or are able to add it into your monthly budget, it is an important thing to consider.
Focus on certain causes
It’s great to help out anyone you can, but if you stretch your donating budget too thin, you’re bound to spend beyond your budget. I recommend picking a couple causes that matter to you and focusing on them!
Research where your money is going
Just because a charity seems to align with your values on a surface level, does not necessarily mean that’s true. You should do your research and make sure the organizations you’re supporting are using your donations in a productive, ethical, and appropriate way. When you make a donation, you are trusting someone else to spend your money, and you must ensure they’re doing so the right way. You can even consider looking into socially responsible investing through Wealthsimple to put your money toward ethical companies.
Make a plan for donating
Budgeting your donations is important. Start by focusing on consistency, which is great when it comes to donating. This helps ensure the places you support have a regular income. You can set up automated payments for the organizations you are supporting so you don’t have to worry about keeping up with it each month!
While it is important to have spending money for personal things and splurges, if you have a lot of non-essential space in your budget, consider sacrificing something to make room for charitable giving.
Don’t forget to claim your tax credits!
You can claim the donations you make on your income tax return. This will reduce the taxes you owe. Any eligible amount above $200 qualifies you for a higher rate, plus qualifying first time donors will get an extra tax credit of 25%. So. not only is are you giving, but there are positive financial benefits you will be able to reap too!
If you cant afford to donate, try giving in other ways
Understandably, not everyone has the means to donate on a regular basis, if at all. Consider donating goods, signing petitions, writing to political figures, and urging others to support important causes, if you are unable to offer financial support.
It should not be the responsibility of those in need to give
Though, this tends to happen often. This is a call to action for rich people: you should be the ones supporting causes that poor people are disproportionately affected by.
The billionaire class is inherently immoral. It’s worth thinking about your wealth and the good that its redistribution can do if you are rich. And even if you’re not, it is worth it to look closely at your budget and consider where you have room for charitable causes.
- Where To Donate To #BlackLivesMatter
- The Best Ways To Help Those In Need During A Financial Crisis
- Using Your Money The Right Way During Pride Month
Donating is part of personal finance for a reason. We need each other, and the funds we have to support each other, to survive in this world and economy. Without giving, your money is wasted. Without important causes and people in need crossing your mind when your budget is overflowing with non-necessities, you are forgetting that giving is a necessity.