Today’s Misdirectional Compass Point:
Saving or Spending Are the Only Two Options You Have When it Comes to Money
“Money is like manure; it’s not worth a thing unless it’s spread around encouraging young things to grow.” – from “The Matchmaker”
Most of the time, when we think about money, we consider it in terms either of spending or saving. Have you ever pondered what you would do if you won a few million dollars? Many people say they’d pay off their mortgage, buy nice new cars, travel, or experience other luxuries they otherwise couldn’t afford. Some consider putting some of it away for a rainy day or retirement (or a rainy day during retirement, I suppose).
What if I asked you to ponder a different question though? If you had five million dollars to give away, what would you do? Would you donate it to a charity to support research or awareness about an illness or disease that you or someone you love has been affected by? Would you start a foundation to provide an after school program in your neighborhood? Is there someone you know whose life would be utterly changed for the better if you could just invest fifty thousand dollars to resolve some desperate need they have – a life saving surgery, an expensive piece of medical equipment, etc.?
Giving is a phenomenal third option we all have with our money, and the best part is it doesn’t really matter how much money we have – we all have the capacity to give a small percent of it to help others, our loved ones, our neighbors, our communities. In fact, studies have shown that those who give more of their money actually tend to be wealthier as a result! I know that sounds a little questionable, a nice idea but without a lot of real substance or hard data behind it. However, a study conducted in 2000 called the “Social Capital Community Benchmark Survey” finds that, though seemingly paradoxical, having more wealth tends to lend itself to giving more AND giving more tends to lend itself to increased wealth! I would encourage you to read the full study about giving making you richer (and then using the interactive charitable calculator provided to gauge your own giving impact (just pretend the graphic says 2008, not 2006)), but here are a few key quotes:
The S.C.C.B.S., which takes into account differences in education, age, race, religion, and other personal characteristics, shows that people who give charitably make significantly more money than those who don’t. While that seems like common sense, it turns out that the link in the data between giving and earning is not just one-way. People do give more when they become richer—research has shown that a 10 percent increase in income stimulates giving by about 7 percent—but people also grow wealthier when they give more.
Psychologists and neuroscientists have identified several ways that giving makes us more effective and successful. For example, new research from the University of Oregon finds that charity stimulates parts of the brain called the caudate nucleus and the nucleus accumbens, which are associated with meeting basic needs such as food and shelter—suggesting to the researchers that our brains know that giving is good for us. Experiments have also found that people are elevated by others into positions of leadership after they are witnessed behaving charitably.
My personal experiences would certainly lead me to recommend giving a set percentage of your money away as one of the most shrewd investments you can make. You’ll see it come back to you and then some, on top of which you’re helping loved ones, neighbors, and community grow. But just in case you aren’t convinced, here are a few other reasons you might find giving to be a rewarding experience.
The Giving Passion
“We make a living by what we get, but we make a life by what we give.” – Winston Churchill
Giving your time, energy, and resources to others is a rather magical act, in that you personally will reap huge benefits as well. You might think that working for a day on, for example, a Habitat for Humanity house is just going to help those who will someday live in it. I’d like to suggest that there is a myriad of things you’ll get out of the experience of giving.
- You’ll feel good doing it.
- Most giving opportunities involve working your physical muscles, your mental muscles, or both. One way or another, you’ll become stronger.
- You will learn to look beyond your own self and begin to see more ways in which we’re all connected.
- You’ll figure out where your “giving strengths” lie.
- You’ll make the world better.
I encourage you to spend a little time today thinking about what your strengths are, where your passions lie, and what sort of opportunities might exist in your community to use your strengths and passions in a way that will help others.
Good From Giving
“How wonderful it is that nobody need wait a single moment before starting to improve the world.” – Anne Frank
There was a Friends episode in which Joey was determined to show Phoebe that there was no such thing as a truly selfless deed, because when you do good things for others it makes you feel too good to be counted as totally selfless. As you know if you watched the show, Joey was a wise man.
Giving your time, energy, money, and other resources to someone who could benefit from them just about can’t help but make you feel great inside, even if you don’t actually see the eventual outcome of your generosity. Like the butterfly effect concept, you never know what monumental effect a simple act of kindness can have on an individual, a family, or even a community.
Interestingly, the more you give, the better you’ll get at it. Giving of your time or money forces you to become a better steward of those resources, increasing your time management skills and your awareness of your finances. In fact, most leading financial magazines I read have endorsed giving ten percent of your income to a cause you are passionate about, because the increased awareness of your savings and spending habits usually reaps enough personal benefit to offset the ten percent donation in the long run.
Yep. Giving of yourself, however you choose to do it, can be a downright selfish act. So go treat yourself by sending a check to your favorite charity, or indulge yourself by spending the day serving food to the homeless.
A Source of Strength
“Strength does not come from physical capacity. It comes from an indomitable will.” – Mahatma Gandhi
Most giving opportunities involve working your physical muscles, your mental muscles, or both. One way or another, you’ll become stronger.
Giving can be a very small thing. When you smile at someone who opens the door for you, chances are you put them in a better mood. You’ve used your muscles in your face and arms in the process.
I recently spent a morning opening about a thousand cans of fruit cocktail for individuals and families that need a charitable source of good meals. I don’t know that there were muscles in my body I didn’t use by the time I was through!
Being a part of a charity walk some weekend doesn’t just provide a good opportunity for physical exercise, it also provides an educational event for you to learn more about whatever cause you are walking for, what research is being done towards a cure or solution, and how you can get more involved if you are interested.
There are museums, libraries, theaters, zoos, schools, and other institutions striving to provide positive learning experiences to the public, and are yearning for people to support their efforts through donations of money, resources, or your time. Think about the potential knowledge you could take out of working one day a week or month at a museum. Think of the positive change you could make in a child’s life by talking to them about the animals they’re looking at, or the play they just watched.
My examples focus on helping humans, but there are certainly other causes out there! Giving to a local animal shelter, working to preserve a historic building or landmark, or somehow improving the environment – the opportunies are out there, and plentiful enough that there is surely something that you could get involved with tied to your particular interests, and make a positive contribution to.
Connectedness
If you have a chance some day, I encourage you to take the StrengthsFinder exam from Gallup. It is an exam that enables you to identify your strengths, then work on action items to utilize and keep growing those strengths.
I bring it up, because I took the exam, and my number one strength was “Connectedness”. There is a lot of explanation and discussion about what that means, but I think this quote sums up perfectly how someone with this strengths filters the world.
“Sometimes I just look at my bowl of cereal in the morning and think about those hundreds of people who were involved in bringing me my bowl of cereal: the farmers in the field; the biochemists who made the pesticides; the warehouse workers at the food preparation plants; even the marketers who somehow persuaded me to buy this box of cereal and not a different one sitting next to it on a shelf. I know it sounds strange, but I give thanks to these people, and just doing that makes me feel more involved with life, more connected to things, less alone.” – Rose T., psychologist
Through giving, you can learn to look beyond your own self and begin to see more ways in which we’re all connected. I come back frequently to the idea that giving can be a very small act, or a very large one (or, ideally, some combination of all sizes of giving, intertwined into your daily life). You’re likely giving throughout your day and not realizing it.
Some examples of how I have given recently – watch for a few you recognize in yourself:
• placed my empty cardboard cereal box into the recycling bin instead of the garbage
• smiled at the clerk at Target, thanking her and telling her what a great job she did
• turned the lights off in the house before leaving to use less energy resources (thus reducing pollution and my electric bill simultaneously!)
• bought a calendar for a friend because she likes cows
• said hi to my neighbor and asked what he had planned that day
All of these actions helped me to connect with my environment and/or community, all of them took minimal effort relative to the potential benefit, and all of them are examples of giving.
Look around in the world around you as you go about your day. Think about your interactions with people you come in contact with, and how you can improve someone’s day with just a few extra words and/or smiles. When you walk into a store, think about everyone that was involved in making your shopping experience there possible – clerks, managers, shippers, suppliers, manufacturers, and far more. When I was returning an item the other day to a store, I watched as the clerk took care of the transaction with ease, and thought about the people who were involved with creating a system of technology, ideas, and policies that enabled the clerk to so quickly and efficiently take care of me. I thanked her, but as I walked away thinking about some different sorts of experiences I’ve had at return desks, I also said a silent thanks to the establishment that made both my experience and the job of the clerk so easy and painless.
We’re all connected, to our environment and everything that exists in it, in ways we’ll never realize. By giving your time, money, and resources to something you believe in that is bigger than yourself, you extend your awareness of what is beyond your self, and increase your opportunities to learn more about the ways in which you are connected to others.
Giving Strengths
“The excellence of a gift lies in its appropriateness rather than in its value.” – Charles Dudley Warner
By actively giving, you’ll figure out where your “giving strengths” lie.
As Mark Sanford puts it, “Giving is an art. That requires practice.” If you don’t feel you have money to give, you can give of your experience, your skills, your time, or other resources you may have. Experiment with getting involved in different kinds of giving, with different kinds of organization involved in your efforts. Maybe you’ll go volunteer on a Habitat for Humanity project and find out you excel at bashing your thumb with a hammer but not much else when it comes to home construction. That’s okay, the next day you can go teach high school kids how to manage their money when they get older. The day after that, you can read to children at your local public library. Eventually, you’ll find something that matches your skills and interests with a place you can do the most good with them.
I don’t like to think of people as “tools” or “resources”, but consider the old adage about chopping down a tree with a sledge hammer. You might get it done, but you’d have a much easier time of it and be able to chop a lot more trees down if you used an axe or a saw. By finding something you’re a great fit for, where you can thrive and be passionate and use your strengths to accomplish big feats, you’re maximizing your giving potential.
Change Your World
“If we have the opportunity to be generous with our hearts, ourselves, we have no idea of the depth and breadth of love’s reach.” – Margaret Cho
By giving, you’ll make the world better. Maybe not always “the” world every time, but certainly “your” world. And since we’re all connected (see above), that starts becoming one and the same, see?
Leadership is said to be about serving others, so it stands to reason that by giving to others, you are in fact becoming a leader in your community. The more you give, the more you begin to understand inherently what it means to be a great leader. The world needs leadership, perhaps today more than ever.
In the book Good to Great, one of the absolute keys to a “Great” leader is that he or she possesses, somehow, near limitless amounts of both confidence and humility, simultaneously. By learning to go outside of your self and learn ways in which we are all connected, finding what your strengths and interests are and how they can be applied to charitable acts, and activily going out and giving in the ways you are passionate about, chances are you will encounter situations and people who will encourage and hone your confidence and show you reasons to be humble. Chances are if you are reading this blog post, you’re far better off in life than most of your fellow mankind, and it is hard to truly understand how fortunate you are, how much you have to be thankful for, and not be humbled as a result.
How you perceive reality creates your reality. If you perceive a reality in which you can make positive changes, you’re well on your way to changing the world you live in.
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