Many financial advisors recommend the following steps to help people manage their money:
1. Get out of debt
2. Create a safety net
3. Invest for retirement
That is sound advice, and there is good reason that it has been echoed over and over again. The thing is, I always recommend a fourth step that I think is just as important:
4. Give back
I am so passionate about this 4th step that I have it posted on the homepage of this very site.
Money Has Karma
A few well-known financial advisors, such as Suze Orman, agree with me. It seems that money has karma. My own life is proof of this. In those times when I have been responsible for and generous with my time and money, I am rewarded for it. There is enough proof to my theory that I’m betting that opening your mind, schedule, and wallet to help the needs of others will open your life up for great things as well.
Now, I don’t recommend that you take a sack full of money down to your local charity as an investment tactic. Here is what I do recommend:
- Set aside an amount of money each month that you know is the right amount for your budget (neither too small nor too big)
- You could set this up as an electronic transfer, but I find it very worthwhile to hand deliver charitable donations. This is particularly true if you have children since you will be teaching a giving culture through example.
- Invest in kindness in every day purchases in order to help your monetary karma that much more
- Don’t forget about those first three steps of paying off your debt, creating a safety net, and investing for retirement. Money rewards those that respect it.
There is a lot of financial advice on this and other sites. To me, this post represents the thesis statement to all of them. Good fortune follows those that live for others.