Charitable Giving in Early Financial Independence Journey

Saving 65% of income, Riley seeks advice on early charitable giving in financial independence journey, emphasizing generosity as a foundational mindset.

### Balancing Financial Independence and Charitable Giving: Advice for a Young Saver
* 💰  Riley, a 23-year-old who saves **65% of their income**, seeks advice on incorporating charitable giving into their financial plan while supporting a family member undergoing cancer treatment.
* 🧾  Financial advisor emphasizes that supporting family members is not tax-deductible charitable giving, but rather personal gifting, which **can't be claimed as a deduction**.
* 💸  Riley's high savings rate (well above the **recommended 25%**) provides flexibility to allocate **additional funds for charitable purposes**.
* 🎁  The advisor commends Riley's desire to help others and suggests that being generous should not be viewed as a **step in the financial journey**, but rather a **foundational mindset**.
* ⏳  The advisor shares personal experience, mentioning the need to **save for two retirements** due to caring for a special-needs child, highlighting the **importance of being prepared to be generous** in such situations.
* 🌱  The advisor and co-host emphasize the importance of **generosity as a character trait**, stating that it's better to **learn to be generous early in the financial journey**, as money **amplifies existing traits**.
* 💭  They stress the value of gratitude as a foundational principle, as it helps individuals **navigate financial decisions** and **become the best version of themselves**.
* 💡  Overall, the conversation encourages Riley to **continue their high savings rate** while finding room to be generous, highlighting the **potential long-term benefits of early and consistent generosity**.

[Music] Riley's question is up next. It says, I'm 23 and I invest 65% of my income. Wow, my brother is undergoing cancer treatment right now and I would like to help out financially. How should I think about charitable giving early on in my financial independent Independence Journey? This wasn't your actual question but you said something trick because I had to straighten this up with someone else. Uh, charitable giving. When generally speaking, when people talk about charitable giving, they use that expression talking about the tax deductible version of charitable giving. When you are supporting family members or individuals, that does not, that's not a tax deductible expense. I'm just on out there because people don't realize that. Someone said to me, Hey, I've got a friend and they're in need and I want to give them some money. How do I do that in the most tax efficient way? And I'm like, O, there's not that doesn't, you know, that it's about that's gifting, that's gifting, but it's not, you don't get a

deduction for that. That part is right there unless it's legally structured that way because I have had somebody where there was like a scholarship fund that's right through a church that I've given money because they were trying to specifically help out this family so but most people exactly right but so what you're saying is hey I'm I'm what I love hearing rile is you're 23 years old you're saving 65% of your income. One of the things you've heard us say is that our goal for you is we want you to be saving 25% of your gross income well you're blowing that out of the water and for someone who's 23 I would argue that anything you're doing with your dollars above 25% is totally up to you you get to choose and it sound like you've been choosing to save that now you want to figure out how you can pour into the life of someone else and really be a blessing to them I think that's amazing I think that's

wonderful, and it sounds like you have a lot of room in your system to be able to do that really, really well. That doesn't give me a whole lot of pause at all. I don't think. Yeah, Riley, I'll give you more of the experience shares because y'all know with my youngest child, we've had to save. I don't save for one retirement. We're actually saving for two retirements because I have to. We have to do life decisions that will provide beyond when I'm no longer here, my wife's no longer here, and we need somebody to help out with our youngest daughter and um. I feel like sometimes some of this success and some of these good things that have come is so that I'm equipped and prepared to be able to be that generous. And I think that it's very, it's great to be selfless and be able to get outside of money 'cause money is not something you should worship or put the center of your life. And if you've got 65% of your money that you've it maybe

those were that was the preparation. And now you're able, like B said, get Beyond 25% to love on someone you care about and needs your help in this moment in time. Um, because Health struggles, I mean time is the most valuable resource in the world. You know, it's not only for Building Wealth but also for making memories for people that you care about. So for you to be there, um, I think that's pretty spectacular and amazing. And um, and I and I, we we commend you for being selfless. And I think, you know, at the end of the question, the actual question forras, how should I think about charitable giving being generous early on in my financial Independence journey. I just think it's worth mentioning that when we think about generosity, in our opinion, it's not a step of the financial order of operations. It's not something that once I get to, then I can start being charitably minded, then I can start being generous with my time, my resources. We consider that sort of a ground zero.

sort of an entry level because if you can learn how to be generous, whether it's with financial resources, or your time, or your skills, or whatever it is that you're able to be generous. If you can do that starting out early on at the beginning of your journey, there's a really good chance that it's going to carry through for the rest of your financial journey. And I just don't know a lot of people who said, Man, I was just too generous, or, Man, I wish I would not have done that thing. You even write a little bit about that when you're going through the ground rules in the book, right? Yeah, well also I think money is just an amplifier of who you are in a lot of ways, so if you can be good with a little and while you're why you don't have a lot, when you reach abundance, you'll just be a better version of yourself because sometimes I see people, they come into money, and if they haven't actually spent time reflecting on who they are and getting outside of the

selfishness of where where things can take you financially, and that's really we want you to be selfless. And that's why gratitude is a Step Zero. It's part of the ground rules because I do think it helps you navigate this well and become the best version of yourself versus someone that's kind of distracted by what they think money will do for them.

Where Does Giving Fit into My Financial Independence Journey?

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Charitable Giving and Financial Independence at a Young Age

Riley, 23, is already investing 65% of their income, exceeding the recommended 25% savings goal.

They are now considering charitable giving to financially support a family member, understanding that it's not tax-deductible.

The financial advisor commends Riley for their savings and encourages them to continue making a positive impact through charitable giving.

The Importance of Early Generosity in Financial Independence

Being financially prepared allows for the opportunity to be generous and selfless, especially in helping loved ones in need.

Generosity should not be seen as a later step in financial independence, but rather as a foundational principle from the beginning.

Time and resources are valuable for building wealth, but also for creating meaningful memories and supporting others in difficult times.

The Power of Generosity in Personal Finance

Starting to practice generosity early in your financial journey can positively impact your overall financial behavior.

Money has the power to amplify who you are, so being generous with a little can make you a better version of yourself when you have more.

Reflecting on your values and identity is important when it comes to managing a large sum of money, as it can easily change a person if they are not grounded in their beliefs.

The Importance of Gratitude in Financial Success

Gratitude is emphasized as a fundamental aspect of personal development for financial success.

It is seen as a crucial element in navigating the path to becoming the best version of oneself.

The focus is on being selfless rather than being driven by selfish financial motives.