Why Should Frugal People Donate to Charity?
Why Should Frugal People Donate to Charity?
Giving money for nothing in return isn’t something that would necessarily appeal to folks who lead a frugal lifestyle. After all, when you’re pulling all the stops to save every penny, charity seems like wasting all that effort. Of course, there’s an altruistic side to charity. A lot of us want to make a difference and play a bigger role in society. Donating to different causes is one of the ways we hope to achieve this goal. Believe it or not, there are financial benefits of charity too. If you’re someone that lives through a budget, I believe you should make charity a part of your financial plan. In this article, I will explain why the penny-wise, frugal, and thrifty should participate in charity. Why should frugal people donate to charity?
Let’s dig in.
It Makes You More Financially Responsible
Let’s say you have signed up for a charity where you donate $50 a month. To make sure that you don’t fall behind on these donations, you would become more attentive to your finances.
People are motivated by different things. Helping those in need can often feel more rewarding than upgrading your phone or buying a fancy watch. A lack of motivation is one of the reasons for this depressing scenario.
An obligation to pay a certain amount to charitable causes each month could push one towards better spending and saving habits.
You Get Tax Deductions
Tax-deductible donations are somewhat complex. Depending on the amount, the charity organization, and some other factors, certain donations can lower your tax bill.
On certain charities registered by the IRS, your donations are written off against your tax. In a certain way, this gives you better control of your money. Instead of letting the government decide where to utilize your money, you lend help to a worthy person.
At the end of the day, the deserving get support and you have the opportunity to save some money. It’s a win-win deal.
It’s Good for Your Health
Different studies have shown that volunteering can have health benefits ranging from lower blood pressure to a longer life. It is also believed that giving to charities activates the same part of the brain that controls reward and joy.
According to the Cleveland Clinic, increased self-esteem and lower stress levels are some of the other benefits of giving charity. But it shouldn’t take studies to show that doing good for others makes us happier too.
Contributing towards a worthy cause creates a feel-good factor that one needs from time to time. Instead of considering charity as giving away money, we need to think of it as an investment in our self-esteem and mental health.
You Help Those Who Are in Need
Making you financially responsible, reducing tax bills, and improving your self-esteem are all secondary benefits of charity. The biggest reason one should donate is that it helps those who are in need.
It doesn’t matter whether you chip in with a few dollars or give away an extremely generous amount —there’s always going to be people who’d appreciate your gesture of kindness.
One of the reasons financially conscious should especially involve themselves with altruism is because it creates a sense of community. Charitable activities foster an environment where you reach out to others and expect others to do the same in your time of need.
Make Charity a Part of Your Financial Plan
Even altruism needs to be planned. You need to create a strategy that clearly outlines your goals with charity. The first step is to decide what cause you want to get behind. You can donate to charities that are engaged in community improvement projects around your neighbourhood. This would allow you to see the change your money is creating firsthand.
To make donations a part of your budget, you can make a monthly pledge. Having non-profit organizations deduct a monthly amount directly from your account is another way to streamline your charitable giving.
It’s also important to evaluate charities before signing up for any donations. Websites like Guidestar.org and Charity Navigator help you do exactly this by checking the transparency of major charities across Australia.
Conclusion
We all want to leave behind a legacy. Even the most miserly among us want to create a difference. Lending a hand to charitable causes helps us achieve this goal. If planned appropriately, donations are not just good for society, they also have a positive influence on our financial health.
Pledging a certain amount could inspire you to be more financially disciplined, save your tax and give a boost to your self-esteem. You could back causes that are close to you and witness the change through your own eyes.
Being money-conscious shouldn’t be the reason for one to shy away from charity. Instead, those who indulge in budgeting should make space for charity in their financial plan.
Featured photo by Joel Muniz on Unsplash
