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If you’re a budget person, you’ve probably heard of the 50/30/20 rule. This simple budgeting technique suggests that you spend 50 per cent of your after-tax income on needs, 30 per cent on wants and the remaining 20 per cent goes into savings. But where is there room for charity you might ask? We always make room for the things that are important to us, and here are some reasons why you should make charitable giving a priority.
Satisfaction of helping others
Growing up, we are all focused on the end result: what school we will attend, where we will live, who we will marry and eventually buy a house with. However, this end-goal focused mindset often does not always include volunteering or charitable giving since we are focused on me, me, me. We get so wrapped up in our own priorities that we forget to stop and look around us on the journey. There are so many others who can’t reach their goals due to illness, accidents, poverty or other unavoidable circumstances. Helping those around you reach their goal can benefit you both, with the satisfaction of helping others.
You will actually feel better
So yes you may feel satisfied after assisting someone in need, but did you know that your brain actually feels pleasure when you donate? According to a research study conducted by the National Institutes of Health, pleasure centres were activated in the brain when participants donated a portion of the $100 they were given. Well, science has proved it, donating to a good cause is great for everyone.
Donations are tax-deductible
Now we know donating is all about helping someone in need, but it doesn’t hurt to save a bit of money on taxes as well. As long as you are giving to a registered charity, these donations can be written off as tax deductible. Win-win. To learn more about this, visit the Government of Canada website.
Promote generosity and help bring meaning to lives (yours and others)
We’ve established that donating to a cause makes yourself feel better and helps the party at hand, but it also encourages friends and family to do the same. Talking about your positive experiences and the impact that your money and time have on someone can motivate others to do the same, and strive for that sense of meaning.
Maybe you’re thinking you would love to give to a charity in need, but you really don’t have much to give, so what’s the point? Well, a study at the University of British Columbia and the Harvard Business school showed that people who spent as little as $5 on someone were happier at the end of the day than those who spent $5 on themselves. So next time you think about treating yourself, do one better and treat someone else. This small gesture can bring you both happiness at the very same time.