Many years ago, while I was searching for strategies to eliminate my money problems, I read a book by financial guru Suze Orman which opened my eyes to an interesting principle that promised to help me achieve a better relationship with my money.

In The Courage to Be Rich, Orman opined that it was important for us to connect to the world with our money, and that charity should be a part of our financial plan. Orman noted that giving money away had many benefits that could not only change people’s lives, but improve our own finances.

HOW GIVING BECAME A PRIORITY EXPENSE

I was determined to fix my money woes, so I usually followed the advice of the experts without question. However, the concept of giving away some of my inadequate income to others left me perturbed. How was I going to survive on less money when I couldn’t even pay my bills?

This recommendation took a huge leap of faith, but I resolved to give it a try. Each month I put aside 10 per cent of my income into an account. I didn’t worry about the fact that this money could have helped to reduce my debt; instead I used it to support charitable causes that appealed to me.

GIVING BROUGHT MORE, NOT LESS

Thankfully, my altruistic efforts didn’t sink me deeper into a financial quicksand. Somehow, my bills were covered and I continued to pay down my obligations. By the end of that year, I had received so many gifts from clients that it made me recognise that something remarkable had taken place.

Just like Orman had promised, my charitable giving had improved my financial situation. This was a strange phenomenon, but I never tried to explain it in logical terms. I just knew that it had worked for me, and that there was enough evidence to support adopting this principle as a way of life.

CHARITABLE GIVING NOT ONLY FOR THE RICH

Some people believe that it “takes cash to care,” and that charity can only be practised by those who have plenty to share with others. In these stressful economic times, how can it be possible for us to give money when we’re burdened with rising prices, stagnant income and crippling debt?

It stands to reason that rich people should be charitable; in fact, some of us might secretly think that the wealthy have an obligation to share their gains with the struggling majority. However, like all other laws of the universe, this money principle does not discriminate by a person’s net worth.

UNIVERSAL LAWS SUPPORT GIVING

There are several natural laws that govern our world; you can read more about them online. The Law of Compensation states that when you give of yourself, you will receive even more than the amount of your contribution. It also explains that you have to give before you can get.

Think about it — you have to sow a seed and nurture the plant before you can reap the harvest. Nature does not operate in a miserly way; it gives lavishly and perpetuates abundance in this way. Similarly, you need to be willing to invest in yourself and others if you would like to create wealth.

CAN GIVING HELP TO MAKE YOU WEALTHY?

Economist Arthur C. Brooks carried out research in which he hoped to prove that most people gave because they were rich. However, while the statistics indicated that wealthy people were big givers, it also showed that the more people gave to charity, the more they prospered.

In fact, not only was there a positive correlation between monetary gifts and money success, but Brooks also found that people who volunteered and even donated blood did well financially. After repeated efforts to discredit his own research, he discerned a logical reason to explain his findings.

GIVING IMPROVES YOUR WELL-BEING

Brooks theorised that when people give to charity, they become happier as a result. In business, it is recognised that contented workers lead to higher production, as they work harder, longer and more joyfully. Brooks asserted, “If you want to be a productive person, work on your happiness.”

Brooks put it simply, “Charity brings happiness and happiness brings success.” Studies showed that giving also helps to lower your stress levels, which can boost your health and your work output. Other research noted that people thought that givers had strong leadership qualities.

CULTIVATE A SPIRIT OF GIVING

Famed capitalist John D Rockefeller stated, “I believe that the power to make money is a gift from God… to be developed and used to the best of our ability for the good of mankind.” He thought that charitable giving, with the right attitude, had contributed to his ability to generate immense wealth.

While you shouldn’t give with the intention of getting a monetary return, having a charitable focus can significantly improve your quality of life. With a better outlook on your future, you can develop the mindset to accomplish great things, and maybe even amass a financial fortune!

Copyright © 2013 Cherryl Hanson Simpson. No reproduction without written consent.

Originally published in The Daily Observer, November 21, 2013

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Cherryl is a money coach and business mentor, and founder of Financially S.M.A.R.T. Services. See more of her work at www.entrepreneursinjamaica.com and www.financiallysmart.org. Contact Cherryl