Philanthropy...

Tithing/Charitable giving - call it what you will, but there is an innate need in all of us to give something without receiving anything in return.

A bit of history on the word "tithe":

It is from old English and literally means: "one tenth of one hundred" or ten percent; this has been most frequently used by churches to denote the portion of your income you should "give" to God. (Whether you practice/believe in this or not is not what this post is about; just thought I would give you a background on the word--so please, do not spam me to death.)

This is one of the most difficult concepts for people to grasp, yet one of the most important. If you do not believe me, just try it. Find a charity that is dedicated to helping people and go see it--that's right, I am saying go see where you are thinking about giving your money to.

Once you find one you feel comfortable with, start making donations to them on a regular basis. After three-six months evaluate your finances and your own well-being and see if you aren't doing better and/or feeling better about yourself. (There are food banks/homeless shelters in just about every city in the world, just do a quick search or ask around. It certainly does not have to be a food bank that is just a suggestion; give where you feel you are meeting a need.)

No matter where you decide to give, I would caution you to find out what they truly do with the money; ask to see their annual report or simply send your gifts/donations with a note attached stating how/where you wish the funds be used (this is not full-proof, check this article, however a written statement can be considered somewhat binding). You might even write your wishes on the check, in the memo line.

When you find a charity that you are comfortable with, make a commitment to yourself to give a set amount from every paycheck that you receive to this charity. Ideally ten percent is a good number, but if you feel overwhelmed by that, give five percent to start. (One reason I think a food bank is a great place to start is you can ask them how much a meal costs them on average, then figure out how many meals you are providing with your gift.)

I know by this point I have lost some of you; you are thinking "Why on earth would I do that? Give away my hard earned money?"

Call it what you will, but I like to think of it as a way to honor those who have helped you get where you are. Whether you want to admit it or not, someone helped you get everything you have (I know, I know, the Western mindset is "I pulled myself up by my bootstraps, etc, etc.")

Look, whether you believe in God or a higher power or not: somebody gave you a break, someone took a chance on you for that job, someone helped you out in school, someone spoke up for you, someone offered you a promotion...do I need to go on?

Think of this as a way to honor them, and a way to help someone else out with what you have--you worked hard to get it, which makes giving it away that much sweeter.

Do this as a direct reduction of your income, not as an expense--which means do not include this in your budget (do it that way and it becomes much easier to part with.)

Again, I would not include this in your 50-30-20 plan, you will find it much easier to give if you treat this like you are treating income tax and other automatic deductions from your paycheck (i.e. employee benefits--health insurance, 401k's, etc).

You can give your time too, but it will not feel the same as giving away your cold hard cash...you can stop clutching your wallet now!

Auf Wiedersehen!