Today we had discussion about giving and helping charities and other non profiting organizations.
Thomas Stanley has written several bestselling books about average millionaires (Millionaire next door, Stop acting rich or other books). Stanley is profesor on university and did research on many millionaires in USA. Stanley represents statistical results in very easy way to understand. (find time to read at least 1 these books). Anyway let’s get back to our topic.
Everyone knows that if you take money from your pocket and give – you have less. So many people thinks that giving and wealth are substitutes. The truth is just oposite.
“Giving to charitable causes and wealth are complements, not substitutes, as logic might seem to dictate. Two groups of high-income producers were studied. Both groups were statistically identical in terms of income and age. The first group contained those who gave at least 10 percent of their annual realized income to charitable causes each year. The second group gave 1 percent or less. In terms of average dollar amounts [of net worth generated], the first group significantly outpaced the second [by about 20 to 1].” from freemoneyfinances or on googleBooks(page 231 & 232)
Read “Most charitable among wealthy have highest net worth – and are happier too” short article about Stanley’s book.
Interesting reading above, right ? The one who gives more will end up with more. Exactly oposite what our brain tells us.
So I had few questions:
- guys like Bill Gates and Warren Buffet and others give away incredible amount of money. Is this somehow related to their wealth and should we wait until we are millionaires to start giving ?
- I believe that money has very nice attribute/character – money just multiply who/what we are. (If you you are greedy when you have few dollars, you will be much more greedier when you will have million dollars. And the oposite is true as well. If you know how to give money when you have little – there is high probability that you will give away as well and be even more generous when you get more. If you on drugs when you have 10$ then you will be on heroin when you will have 1M$. Money just multiply who we are and what we do. (I have experienced that and many has confirmed it as well:)
- I agree with Stanley results – there is statistically higher probability that you will have more if you are generous
- What “power” is behind that and how come that it works when it make “rational” non sense ?
- rational way – there is no explanation for this – at least I can’t explain it
- “other” or spiritual way – religions have really clear view on this
- In Bible (old testament) we can see that this is “command” to tithe (give 10% of what you have)
- In new testament there isn’t any similar “command”, but rather appeal for voluntary giving – as there is not mentioned any specific number for giving and it is rather based on generosity (some give less than 10% and some give more than 10%)
- Bible talks about money very often and on many specific topics (debt, giving, business owners, budgeting, lending, investing,….)
- Don’t know other religions in very details, but you can find in almost all religions verses like “helping others”, “taking care of your family”, “be responsible and accountable for things you have”, “prefer others”
- What rich people say about that God is responsible for their worth ? Here is extract from Robert Kiyosaki book Increase your financial IQ (Kiyosaki is well known for his bestselling books series “Rich dad, poor dad” and his game “cashflow & rat race”)
As far as tithing goes, we continue to donate a large percentage to charitable organizations. It’s important to give. As my very religious friend says, “God does not need to receive, but humans need to give.” Also, the reason we give is because tithing is our way of paying our partner — God. God is the best business partner that I’ve ever had. He asks for 10 percent and lets me keep the other 90 percent. You know what happens if you stop paying your partners? They stop working with you. That is why we tithe.
- My personal, but very important thought
- God is not cash machine. It is not important “how much” you give, but rather your personal attitude and reasons why you give. Do you give because you want to help or serve others or just because you want more ?
- Giving is not just about money, but also your time, your smile, your love,….