Charity

photo from Frontlines of Revolutionary Struggle

A few years ago my sister told me that she and her husband had saved an extra $1,500 from their tips that month – both worked in the food service industry.  I was excited for them.  They have always lived paycheck to paycheck and I thought that they finally had a way to “turn the corner” and begin a savings account that might lead to a down payment on a home.  What she told me next both shocked and disgusted me.

My sister told me that they gave $500 to their church and the remaining $1,000 was divided into five dollar bills.  My sister and her husband then went and handed out the $5 bills to homeless people as they “witnessed” to them about Jesus and Christianity.

Whether or not you are religious – try to put that aside for now.  And I can understand supporting your church in the form of monthly tithes (donations).  But to give away your entire savings for the month, when you don’t even have a cash “emergency fund” in the bank is, in my opinion, not only foolish but also reckless.

If you do not have a savings account of at least 3 years net wages AND a fully funded 401(k) and/or IRA plan, YOU HAVE NO BUSINESS DONATING TO CHARITY!

I have a favorite charity.  It is called the Samuel charity.  My investment account is my charity.  And every month, every available dollar that I can find goes in to be invested to generate even more wealth.  I have over a million dollars in the bank and I still don’t give a nickle to charity.

And neither should you!

Warren Buffet, Bill Gates and Bono should be donating to charity.  Some rich folks give a couple of million and we applaud them.  In reality, most give only a small fraction of their net worth.  Warren Buffet and Bill Gates are actually making sizable contributions to charity and for that I applaud them.  But leave it to them.  If you haven’t earned your million yet, leave the charity giving to the rich folks.

Sound greedy?

It is.  But  you have to be greedy if you want to be a millionaire.  Money doesn’t grow on trees.  You have to fight and scrape for every dollar and donations to charity are hazardous to your financial future and well being.

Does it sound rough?  Yes it does.  But I’ll say it again.  Quit donating your hard earned money to charity!

If an aircraft is suddenly depressurized, what is the first bit of instructions that they give you?  Put on your own mask first before helping others.  If you haven’t funded your retirement account and you don’t have an adequate emergency cash account, why are you putting a financial oxygen mask on others while you suffocate?

I read an article in Bloomberg this week that stated that millions are starving in India as donated food is pilfered by corrupt officials.  Most of this aid comes from donations from western countries and the distribution is so bad that upwards of 10% of the food rots before it can be delivered and what remains is stolen by corrupt state officials and sold for handsome profits.  Have a look at the article:

Poor in India Starve as Politicians Steal $14.5 Billion of Food

I see a story like it every week.  Last week I saw a story about a woman who claimed cancer to get her wedding paid for – she made the whole story up.  A large amount of every charity dollar donated goes to pay some bureaucrat or administrator.  Some day, when I feel “comfortable” in my financial position I suppose that I shall engage in direct charity.  Find a local family down on their luck and help them out, save their house, pay their water bill, fix their car.

What if you lose your job?  What if a loved one is injured and there are huge medical bills?  The charity money that you gave away could have been used to save your own family.  Charity begins at home and you should think of yourself and your family the next time you’re feeling generous with the excess of your paycheck.

And while I’m on the subject of America - YOU HAVE NO BUSINESS DONATING TO OVERSEAS CHARITIES!  More than 1/3rd of each dollar spent by the American Government this year is borrowed money.  Yes, we’re borrowing money to give to charities (ie foreign governments).  Israel has a high standard of living and less debt than us but we borrowed 1/3rd of the US $4 billion in aid that we gave them this year.  And if you are reading this, you probably have debt of your own.  Home mortgage, car payment, credit cards, etc.  If you send ANY money to charity and you have ANY bills, this means that you borrowed that $ to pay the charity.  If you haven’t paid your house off, your car off, & your credit cards, you’re using borrowed money to fund your charity donations.

We allow our politicians to spend out money on charity countries because we’ve all been sold that it is the noble thing to do.  Perhaps if more Americans were concerned for their own wealth and financial well being, they would insist that Congress do the same with their tax dollars.

What I’m saying isn’t politically correct, but it is correct.  Giving money away when you don’t have enough for yourself is insane.  America is broke and we give away more.  Hard times are coming.  In ten years, you may wish you had given less to charity and saved some for your own family.

Think about it.  Be wise with your money.  Be tight with your money.

The path to riches isn’t easy.  You have to change your way of thinking.

Good luck!

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