Your Money_ The Missing Manual Part 23

In It's Not About the Money It's Not About the Money (HarperOne, 2009), Brent Kessel writes that the act of giving is "the yoga of money": "The yoga of money is the act of using money to affirm and enhance our sense of unity, with money itself, and ultimately with something greater than all physical forms." (HarperOne, 2009), Brent Kessel writes that the act of giving is "the yoga of money": "The yoga of money is the act of using money to affirm and enhance our sense of unity, with money itself, and ultimately with something greater than all physical forms."

That sounds like a lot of New Age nonsense, but Kessel has a point. This book has focused on how you can develop a healthy relations.h.i.+p with money to improve your financial situation. But there's more to it than that: By improving your finances, you're in a better position to help others.

If you feel called to give, there are three great ways to do so.

- Donate to charity. There's a lot of need out there. If you're concerned about child abuse, hunger, homelessness, heart disease, or earthquake victims in Haiti, one way to help is by contributing to charities that a.s.sist the victims and prevent the problems. When you give money to an organization like the Red Cross or Salvation Army, your money does real good in the world.TipCharity Navigator (www.charitynavigator.org) lets you search for financial info and mission statements from over 5,000 U.S. charities. And VolunteerMatch.org connects volunteers with more than 74,000 nonprofits that need help.

- Contribute to your community. If you worry about giving money to charity because you don't know how it'll be used, then help people you know. If a friend does a walk-a-thon for breast-cancer research, make a pledge. If you hear a coworker is struggling with medical bills, make a contribution (doing so anonymously is fine-sometimes even better). If a local homeless shelter needs help, make a donation. Helping people you're connected with can feel awesome.NoteEven if you can't afford (or don't want) to give money, there are other ways to help. Many folks contribute used clothing and other household goods to charities that sell the items in thrift stores or give them directly to those in need. And don't forget, you can always donate your time: Charities are desperate for people to lend brains and brawn to help their cause.

- t.i.the. Many religions-including Judaism, Christianity, and Islam-encourage believers to donate a portion of their income to their church. This money is generally used to support the local ministry and congregation. t.i.thing can be a great way to use your money to back your beliefs.

If your money blueprint (Financial Blueprints) doesn't include giving, it can be tough to get started. And even if you want to give, you may not know where to start. Try taking some baby steps. Starting small with giving works the same as starting small with saving: You give a few bucks a month, as you're able. The amount won't really affect your budget, but it'll teach you the habit and mechanics of contributing. Once you see that you can give to charity, begin to increase the amounts.

Some folks can be sanctimonious about charitable giving; ignore them. Don't let anyone make you feel guilty for not giving or tell you where to send your money. Create your own personalized giving policy based on your goals and values. Think about the kind of world you want to live in and act accordingly. Your actions may not give you any direct financial benefit, but they'll generate social capital (explained next) and make life better for everyone.

Social Capital You create social capital-mutual goodwill-when you volunteer at a soup kitchen, help your neighbor move a piano, have your Sunday School cla.s.s over for a barbeque, or join a softball league. Any time you partic.i.p.ate in your community, you're generating social capital, both for yourself and the other people involved. People with lots of social capital can find help when they need it; those with little social capital can spend a lot of time frustrated and alone.

The cla.s.sic Christmas film It's a Wonderful Life It's a Wonderful Life is a great ill.u.s.tration of social capital. Jimmy Stewart plays George Bailey, a man who repeatedly foregoes his own interests to help his friends and neighbors. It costs him-financially and mentally. When disaster strikes, Bailey decides he's worth more dead than alive, and plans to commit suicide so that the proceeds from his life-insurance policy can set things right. is a great ill.u.s.tration of social capital. Jimmy Stewart plays George Bailey, a man who repeatedly foregoes his own interests to help his friends and neighbors. It costs him-financially and mentally. When disaster strikes, Bailey decides he's worth more dead than alive, and plans to commit suicide so that the proceeds from his life-insurance policy can set things right.

In the end, Bailey is saved when all the folks he's made sacrifices for over the years come to his aid. Sure, it's a schmaltzy, feel-good moment, but it's a fine example of social capital in action. When Bailey's brother declares that George is "the richest man in town," he's not joking: Bailey may not have much financial capital, but he's flush with social capital.

You don't have to sacrifice your own interests to create social capital. You can often create win-win situations where everyone profits. But the best way to build social capital is to help others without expecting anything in return.

There's more to wealth than just money. Social capital is just as real as financial capital-and often more valuable.

NoteFor an in-depth look at social capital, pick up a copy of Bowling Alone Bowling Alone (Simon & Schuster, 2001) by Robert Putnam. (Simon & Schuster, 2001) by Robert Putnam.

True Wealth.

It's easy to believe that having more money is the key to a better life-but it's not. The key to a better life is increased happiness.

Wealth and happiness aren't mutually exclusive, of course. In his final column for the Wall Street Journal Wall Street Journal ( (http://tinyurl.com/wsj-final), Jonathan Clements wrote that financial stability improves well-being in three ways: - If you have money, you don't have to worry about it. By living below your means, you get a degree of financial control-even if you aren't rich. Avoiding debt gives you options.

- Money can give you the freedom to pursue your pa.s.sions. What do you want out of life? What gives you a sense of purpose? These are the sorts of things you'll want to pursue in retirement. Better yet, structure your career so you can do the things you love now.

- Money can buy you time with family and friends. In fact, Clements says, true wealth comes from relations.h.i.+ps, not from dollars and cents. In other words, social capital is worth more than financial capital.

Money is a tool. As with any tool, a skilled craftsman can use it to build something amazing: a meaningful life filled with family and friends. But if you're not careful and don't have a plan, the life you construct with your money can be fragile-even dangerous.

Really, there's only one way to ever be satisfied with the money you have: knowing how much is Enough (see How Much Is Enough? How Much Is Enough?). True happiness comes when you learn to be content with what you have. If you never take the time to figure out what Enough means to you, you'll always be unhappy with your financial situation.

Enough is different for each of us. It's not just different amounts of money, but different types of wealth. For me, Enough is having my home paid off and cash set aside to let me buy comic books and go out to dinner with my wife once in a while. For you, Enough may mean renting a small apartment but owning a boat and having the freedom to go sailing for months at a time.

To find Enough, you've got to set goals and look inside to find your core values. It can take months or years to get clear on what makes life meaningful for you, but once you've done this, you can make choices that reflect your priorities.

After all, that's why you're doing this. You're not building wealth so you can bathe in buckets of gold; you're doing it so you don't have to worry about money, so you can pursue your pa.s.sions and spend time with your family and friends.

Remember: True wealth isn't about money-it's about relations.h.i.+ps, good health, and ongoing self-improvement. True wealth is about happiness. Ultimately, it's more important to be happy than to be rich.