Give your money away
One of the few positive things about coronavirus is that it’s reminded us that people are good. We’re singing together on our balconies. We’re helping each other get groceries. We’re giving money away to causes that need it right now, like food banks, domestic abuse charities, and (worryingly) the NHS.
But we don’t need to wait for a global pandemic to do these things.
This time last year, I wrote about the joy of giving back and why I give away 10% (pre-tax) of everything I earn. I felt nervous about sharing something so personal but I know it changed some people’s giving habits – which was the whole point of writing it.
As the 2019-20 tax year ends, I want to make the case for giving away 10% of your income, and why it’s a good amount to aim for.
Why 10%
It makes a difference
Anything you give will make a difference but 10% month on month really starts to rack up. Recent UK earning stats put the average full-time salary at £35,423. If you give 10% of that, it’s £3,542 over a year – a hefty sum of money. It’d cover 2,186 long-lasting insecticidal nets for top-rated charity Against Malaria Foundation, for example.
It forces you to sort out your finances
Annabel and I use a simple spreadsheet to sort out our money at the end of every month, mainly to figure out our giving. But this monthly occasion helps us keep track of everything – investments, bills, upcoming expenses – and make an effort to save some cash for the future. Seeing these figures in black and white every month forces you to pay attention.
It makes you happier
Studies show that being generous makes you feel good. To be fair, that study also says that the amount you give isn’t important. I’d counter that and say that seeing your donations mount up over time, and facilitate long-term work, is a huge buzz. I love watching our Kiva lending profile fill up, and our impact grow, as we make new loans each month.
It’s (probably) doable
The good thing about giving away a percentage of your income, instead of a fixed amount, is that it’s in proportion with what you earn. If you can live on £35,000 a year, you can probably get by on £31,500 – although it might mean making some sacrifices. Of course, we all go through rough financial patches and you may need to take the occasional break. But it’s worth sitting down, looking at your incomings and outgoings, and seeing what you can afford.
It helps you spend on what you value
If we were given one wish, I’m sure that many of us would choose something noble like bringing about world peace or ending global poverty. But our everyday actions often don’t reflect these wishes. Giving away 10% of your money to causes that you care about keeps your spending in line with your values. It reminds you every month that this is what’s important.
It helps charities plan
Annabel and I know how much money we make each month, which helps us plan for the future – saving for holidays, fancy meals or an extortionate compost bin. Charities are the same. They need to know how much money’s coming in each month so they can plan their work and know what they can afford. If their income fluctuates every month, it’s hard to decide what they can commit to. By giving a regular amount, you’re helping them make long-term plans.
You’ll feel it
10% is a lot of money. We gave away £11,422.89 this year, which would have been a really helpful amount to put towards a new kitchen. That’s a lot of floor tiles. But it’s important for the amount you give away to be a sacrifice, not an amount that you don’t notice. It reminds you that these causes are more important than your day-to-day desires. And even if it takes longer to save for something on your wish list, you’ll be supporting people in need while you wait.
Charities we supported in 2019-20
If you know of any charities doing interesting work with the elderly, the homeless and people in prisons, I’d love to hear about them. And if you know of any charities that could use some pro bono writing help, please send them my way.
Tell me what you think
Leave a comment below. Or if you’re not comfortable with sharing publicly, send me an email: lukeleighfield@gmail.com.
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