Sunday, July 15, 2012

Donate Money Can Make You Rich?

When I was young, my brother told me the secret to rich is to make donation. The more you donate, the richer you’re. So I asked him what exactly the donation that you mean? Did he mean giving advices or consultations? No, the donation is a real donation here in a physical "Money" form, he said. Huh? Is that really make sense? It didn't seem possible to me at all.

I still do not have the answer until today because he didn’t really explain that to me. Perhaps he did not know the answer himself and read this information from somewhere else but have no idea why. But anyway, I have figured out the answer by my own but still not sure if this is the real answer and let's see if my answer makes any sense to you.


Why it can be possible?

How can it be possible by donating money can make you reach? I have been thinking and I finally come to a conclusion why it can be possible. The ultimate answer is you're in control of your money by donating money.


(1) You're In Control

The first thing that you may ask, what is the return in terms of money when you give away your money? No, you don't get anything physically. However, when you are able come to a stage that willing to donate your money, it basically means that you're in control of your money. The control here doesn't exactly mean that you're good in personal finance. The "control" here  means you are in control of your  "emotion" towards your money. In other words, your emotion is NOT controlled by your money and I think that is the first thing or fundamental that everyone of us should learn in personal finance
 

(2) Make Better Judgement

When you're in control of your emotion, you can make a better judgement.  When you can make a better judgement, you can make a better investment. When you can make a better investment, you will get your higher return and in long term you will become rich. That sounds simply but I believe that is true. A truly rich people always have a very high Emotional Quotient (EQ). If you see those riches who have very low EQ, I bet their rich will not able to sustain and I have seen many examples as such.


Conclusion

In short, the fundamental of becoming rich is really on controlling your emotion! However, when you tell this to anyone, no one will get it. If this concept is easily be understood, then everyone will be good in manage their money already but this is not the case. You and I know that.

Therefore one clever fella came out this idea, instead of telling everyone that controlling emotion is the fundamental of becoming rich, he/she is telling everyone that donating your money can make you rich without telling the real intention that is when you start to able to let go the money, you're in control of your money rather than being controlled. So, people follow without releasing the fact that they're increasing their EQ and eventually they will get rich by donating.

It seems ridiculous but what do you think? The way I look at this, the only thing to argue here is do you think a person who is willing to donate his/her money means that they're better in control of their emotion? 

10 Comments:

Uang Kertas Kuno said...

Giving a donation especially to the needy will surely do your emotional good. At certain level, human being has the deepest need to be needed, recognized, and meaningful in their walk of life. As they give they know that they can help others in need. As we pay attention to the less fortunate one, then God will find ways for you to open up the heavenlies, aa well as more windows of opportunities, so that you can be blessed even more. That is more of a universal system that has become a principle of life. But you have to put an act on the opportunities given, otherwise you won't see the rewards. Happy giving ! That is human supposed to be, having a giving and loving heart.

Uang Kertas Kuno said...

Giving donation especially to the needies will surely fulfill the deepest desire of our heart because we are created to love, help and serving others. If we understand this purpose of life, then giving donation should have been our way of life instead of something that we have to fight for.
When our action allign with human purpose in the first place, then eventually we will be blessed even more.
Windows of opportunities will be opened, devine appointments and connections are made ,ideas will pops out, and favor of God and of man will follow you as you help the less fortunate. However, we have to put things in action to earn the rewards. We do not need money to make money, but we need people's trust to serve our ideas. Unfortunately, trust must be earned through actions. Happy giving !

ChampDog said...

Thanks for the comment. :) I agree with the beneficial of donations as mentioned by you. I just wonder is there a direct correlation between donation versus controlling the money.

Do you agree that people who are willing to donate their money are better in control for their money? or If I get you correctly, your answer is "Yes" but kind of indirectly?

Michael Tsen said...

my version is here

http://malaysiapersonalfinance.blogspot.com/2010/10/right-truth-behind-donation.html

but yours is great too!

ChampDog said...

This is completley different way of looking at it but they're already rich while they start doing donation.

Do they donate prior they become rich?

Kris said...

Donate to share the wealth then :D

OCR said...

I have several thoughts on this since I've been trying to "force" myself to cultivate this habit; which I want to believe is for good. However, when fail to take control of your finances, even if it's for good reasons, you can still end up in disaster. Will talk about the failure part later.

On the advantage side, apart from the emotional and, psychological impact, my spiritual beliefs often reminds me that our earthly riches do not belong to us. They are blessings and grace from God and thus should always be use for good reasons which include blessing others. To work is a must for all. No one is spared in God's eyes. But we are not to work for money as in slave for money. Therefore, whatever provision God gives is sufficient to provide for our needs and those that are put under our care. Anything more than that, God wants us to give it away to bless others through His provision. Hence, donatin to those who are in need not only shares God's grace, it also gives them the opportunity and rights to live life the way we were given.

Financially, you can also think of it as in a form of savings. Which isn't really a saving but it is also not a spending. When you make a donation to an official body, you are entitled to tax exemption. That means you pay less tax to the government and as you said, you have more control of your own money rather than your hard earn money disappear into tax payment or shopping for another gadget or another set of Nandos! :P although I have never calculate the actual value of returns between tax exemption vs net cash value...it's too petty for me to calculate :P cos it's not like I have a few millions for monthly income to donate! Haha.

Finally, on the dark side of being generous and kind. There are far too many stories of people who have won Lotto (like our version of lottery) in US who have become overnight millionaire and yet had a short lived of luxury living. These people did a lot of charity! In fact, close to all of them did some form of charity. To many, these are very kind and loving people. So, why do they end up bankrupt and became worse than before they even won the lotto? It is simply because of poor financial management. They have no sense of growing their assets not compound income because their sudden richness came without any financial effort (other than having to buy lotto of cos!).

So, my point is - donating to the needy is usually good than bad. But do everything with conscience, responsibility and humility.

ChampDog said...

Thanks of the detail analysis and explanation.

The one that you mention for those who win the lottery, and they do charity - do you mean before or after they win the lottery? I assume is after for what you're trying to say?

So imagine if they already have the donating money mindset prior to win the lottery, do you think they will end up the same?

You make a very good point, being too kind or generous without able to manage your own financial, it is not good.

We always heard that before you can help others, you must make sure you can help yourself. Same thing, before you can love others, you must know how to love yourself. Before you donate your money to help others financial, you must know how to manage your own finance!

Michael Tsen said...

they do donate before 'rich' but your question isn't really valid. What is 'rich' ?

When I have $10, I donote $1, when I have $1,000 I donate $110 ... eventually one day, I can donate all I have now ... coz I will have it again tomorrow.

at which stage is 'rich' and which is not ?

ChampDog said...

Rich means they're now today, the last stage?

So, they donate because they have a mindset of their money can be continuously have it at anytime at the early stage (even they haven't become rich)?


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