Generosity is a virtue that is highly encouraged today to help us face society's problems. A study published in Nature Communications magazine proved that more generous people, who make donations, report an increase in their level of happiness and personal fulfillment. However, philanthropy does not always occupy a place in people's financial planning.
How to include donations in your fixed expenses
Of course, it is important to understand that many people are not in a position to contribute to the causes they believe in, even if they want to. However, if you already have the privilege of financial stability and can contribute to the socio-environmental development of our country, how about setting aside a line in your spreadsheet or fixed expense plan for donations?
And if you think that only those with a lot of money to spare can practice philanthropy and contribute to a cause they believe in, it's time to abandon that belief. It's essential to keep in mind that each person donates what they can and that each amount is vital to building a better future for society and for NGOs that work towards positive impact. That's why the key word is financial planning. It's through this that we can allocate resources to causes and organizations we believe in without surprises at the end of the month.
Plan to always donate: 4 essential steps
1 – Understand your money inflows and outflows
It may seem obvious, but it is very important that you know your income and understand what your mandatory expenses are (such as rent, food, bills, etc.). In addition, an emergency fund is essential so that, in times of need, your financial life will not be impacted too much. To complete the first step, you should also set a spending limit to stay up to date with your bills and donations.
2 – Choose your cause
Get to know the organization you are going to donate to. Choose a cause that is compatible with your values and what you believe in. This will make it easier for you to connect with the actions that your money will provide. In addition, you will understand the main needs of the institution and define what amount is comfortable for you to contribute. It is important to keep in mind that organizations have both one-off and fixed expenses. Therefore, when you commit to donating monthly, you allow for more efficient planning and better targeting of donations towards short- and long-term solutions.
3 – Make the donation
With your budget and causes planned, it's time to make the donation. And this process should preferably be done at the beginning of the month. And this is for a very simple reason: if you wait until you have money left over at the end of the month, it will be harder to donate. The most efficient way in these cases is to plan on your credit card or automatic debit so that, in addition to never forgetting, you don't count on this money during the month.
4 – Track the results
And finally, the best part: enjoy your donation! It’s not just about money. When you see the impact your actions generate, you feel part of that action and this connects you with your human side. Contributing to important causes for the development of society is beneficial for both the recipient and the donor. So, follow the work of these organizations and share the good you do with your friends and family!
If you want to start donating to different causes, how about support Sitawi ? Here we share both on our website and on Instagram and LinkedIn how our donors' money is positively impacting society and the environment. Join us in this movement!
