The Amateur Financier

Alright, we’re at the end of the week, and also the end of our list of simple rules.  As usual, I’ve saved the most important rule for last.  Always, no matter how you are doing financially, you need to remember to

Be Sure to Give Back

More than anything else we’ve covered this week, giving to charity will help not only you, but also your community.  You can help to improve the lives of those around you, and feel good doing it.  Of course, you can’t simply give to everyone who asks; besides the fact that there is a limitless amount of charities that want money, there are (unfortunately) plenty of dishonest people out there who would take advantage of your generosity.  To be sure that your charity goes to those who most need it, here’s a few tips:

1) Check That The Charity is Legitimate: There’s more than a few ‘charities’ out there that are ineffective, at best, and downright deceitful at worst.  Luckily, you can usually protect yourself and ensure that your money goes to worthy charities with a little preliminary research.  I detailed some of the research I do when looking into a charity in my Choosing Charities series, and you should, before you hand over any of your hard earned money, be sure to put in some due diligence in order to ensure that the charity is on the up and up.

2) Don’t Overlook Local Charities: As the many stories, movies and video games can a test, it’s frequently easier to focus on the big fish rather than the individuals who surround you, even if it’s the latter group who actually make everything happen.  In the same way, there’s the temptation to focus on only the big charities with large advertising budgets and/or high name recognition.  There are plenty of smaller, more local charities that could use your help, from the local food bank to a nearby homeless shelter, where your money could do a great deal of good for your neighbors and friends, all in short order.

3) Don’t Leave Yourself in Poor Financial Shape In Order to Donate: Unfortunately, as with so many things in life, giving money to charity entails a trade-off: every dollar you donate is one dollar less you have for your own savings, investments, and spending.  Obviously, I can’t give any hard and fast answers about whether you should or shouldn’t give to charity and under which conditions to make each choice; those are highly personal things, which will depend on everything from your personal financial situation to your religion and moral compass.  I just want to point out that if doing so will put your other personal money goals at risk, maybe you shouldn’t give money and instead…

4) Consider Donating Time: If you are short of money (and who of us isn’t these days?), that doesn’t mean you can’t make a worthwhile contribution to a charitable cause.  If you have time, you can always volunteer to help those less fortunate than you.  Work in a soup kitchen, help out your church, even give to a blood drive the next time you have the opportunity; all of these (amongst many other options) are ways to improve the lives of those around you without needing to break out the check book or dig through your pocket for loose change.  If you have skills that could benefit a non-profit or other charitable group, from marketing (even charities need to spread the word) to managing the money that comes in from other donors, volunteering your time will help the group to save money and be able to better focus on its charitable goals.

5) Work on Spreading the Word: While we’re on the subject of spreading the word, that raises another option for you when it comes to helping charities: pass on news and your interest in the charities to help draw others to the causes you support.  Letting your friends and family know about the types of charities you choose to support, your reasons why, and what they can do to help can be an excellent way to increase the support that your chosen charity receives, as well as getting your loved ones more interested in the causes you support.

It can also backfire, though, and both annoy your loved ones and decrease the chance that they will help your charity.  It’s a fine line to walk, and you need to be careful and not make it seem like you’re going to turn into a pushy telemarketer on them; just bring up your interests when an opening presents, and follow up or let the subject drop according to your loved ones’ response and interest level.

6) Just Do It: Sorry to rely on quoting a Nike commercial, but it is good advice (at least, in this circumstance): giving back is good.  You’ll help to improve the lives of others, make the world a better place to live (if only by a tiny little bit) and feel pretty good about yourself.  While I again caution you not to donate so much that you jeopardize your own financial situation, if you are able to give something, anything, really, it can go to improve the lives of others who are less fortunate.  And that is an amazing feeling.

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