This is part of an ongoing series on happiness. I’m going to continue sharing everyday moments, experiences, and activities where I feel most happy. Since I believe the pursuit of happiness is something that binds humanity, and since one of the major reasons to attain financial freedom in the first place is to improve one’s happiness, I find it important to share aspects of my life where I feel like the pursuit of happiness is most successful. I hope to show through these regular insights that not only does it not take much (or any) money to improve one’s happiness but also that financial freedom provides additional opportunities (via more time) to boost happiness.
Becoming a philanthropist wasn’t part of my dream growing up.
I always thought of philanthropists as rich, old people.
It’s something a millionaire or billionaire does to get their name etched on a wing of a school or a library. Fame isn’t interesting to me, so none of this has ever seemed very appealing.
Moreover, I wasn’t ever sure I’d have enough money to live a decent lifestyle, let alone have enough to give away. Growing up extremely poor substantially lowered my future expectations, probably to a point where I sold myself short for a number of years.
But I’m not old. I’m not rich. And I’m still not interested in fame.
Yet I am a philanthropist.
I’m now in a unique position in my early 30s. I own my own time, which is the ultimate luxury good. There’s no commodity as valuable as time, so to own as much as I do at this age feels wonderful. I’m blessed. And I’m very much aware that I’m part of the 1%.
With all this newfound time, I spend much of it reading. A lot of the material I’ve consumed over the last, say, year or so has been around the subject of happiness.
The pursuit of happiness is an inalienable right, yet it continues to mystify a large percentage of people all over the world.
As such, it’s become a bit of a goal of mine to understand and harness happiness as much as possible. If one doesn’t maximize their happiness while they’re alive, I’m not sure that’s a life well lived. And what is life’s purpose if not to be happy?
While that sounds cliche and selfish, the amazing thing about happiness is that it’s inherently unselfish.
That’s right. I subscribe to the notion that happiness is the joy one feels when they’re striving toward their potential.
Well, famed psychologist Abraham Maslow believed that one’s ultimate potential as a human being is met when one realizes self-actualization, with the upper limits of self-actualization reached by way of self-transcendence. Self-transcendence is accomplished by giving oneself to a purpose that’s higher than oneself, such as altruism. (Other examples of self-transcendence would be spirituality and child rearing, though I personally have no interests in either.)
So if personal happiness’s upper bounds are only reached when one looks beyond oneself, the pursuit of happiness is actually quite unselfish. If anything, the pursuit of happiness is the only logical pursuit in life, as it benefits oneself and those around them when it’s pursued to its upper reaches.
Giving this great thought and reflection has led me to the conclusion that philanthropy is thus the end game for my entire life. And because I am a bit selfish and want to reap some of the rewards of increased personal happiness all the way along, giving while living is the only type of giving that makes sense to me.
And so I started giving away a little money about a year ago. I plan to slowly increase this giving for years to come. I view philanthropy/giving a lot like investing: small, incremental amounts can lead to radical and amazing results over longer periods of time. While the results are measured differently (business gains are far more objective than human progression), they’re both nonetheless just as exciting to me.
The ultimate plan for me is to spend the majority of the last 1/3 or so of my life on philanthropy. While much of the giving will be focused around money, I also see an opportunity to give time away once it’s worth less to me (as an older man). Again, I admit that I am a bit selfish in some regards, and withholding time rather than money while I’m still young is an example of that. However, I’m extremely excited for the overall change I can effect over the course of my life, be it through money or time.
So that leaves me with the other 2/3 of my life, and that also leaves me with hope that I live a long, full life. That 2/3 of my life will be spent building up resources and having fun all along the way. I’ve thus far been incredibly successful at this, and I’m really grateful for it.
My view on the building and giving away of resources somewhat mirrors Warren Buffett, in that I believe my ability to compound money over the long haul will serve humanity better than if I just give away everything I can now. Of course, pressing needs for various causes are ever-present, so I’m trying to balance a little bit of the near term with the long term.
But it’ll be a lot like spending my whole life building a sandcastle, playing in the sun. It’s going to be the biggest and best sandcastle I can possibly build. There’s going to be a huge moat around this sandcastle to protect it. It’ll be majestic. And I’ll be so proud of it when it’s complete. Meanwhile, the whole process is just going to be so much fun.
However, there’s no way I could ignore that the sandcastle will be way too big for just me. It would be nigh impossible to enjoy the entire thing by myself. In my view, it’d be far more fun and rewarding if others could also find value, happiness, and improved quality of life from what I built. And through that, I’ll be far, far happier than I would if I were spending all my time with my sandcastle alone.
And so I’m going to sign my own version of the Giving Pledge via this article (since I’m not rich enough to qualify for the real one): I hereby pledge to give away at least half of my wealth on or (preferably) before my death.
But because my biggest hero in the world of philanthropy is probably Charles Feeney, I’m not really going to talk much more about this. This is the first article I’ve ever devoted to the subject of philanthropy. And it’ll likely be the last.
I plan to quietly give away a little money over the coming years, substantially ramping up the giving somewhere after my 60th birthday. This money will go to causes that are important to me. I have five general categories for giving: sick children, animals, local needs, nature, and urban planning/preservation.
Much like Feeney, I’m going to do my best to time the giving so that I’ve given away everything I can before I die, leaving my older self with just enough money to live off of.
However, that’s just my plan. What you plan to do with your money is completely up to you.
The great thing about philanthropy, though, is that it doesn’t take very much money to become a philanthropist and reap the rewards of self-transcendence. You can give $100 per year to your favorite charity and feel great about the change and hope you’re effecting. A little goes a long way for many people in this world.
Much like all of the other things that make me happy (like animals, exercise, and sleeping in), philanthropy costs very little. And that’s kind of a repetitive theme you’ll notice with my writing: I spend very little money, yet I’m much happier than I ever was when I was spending way more money. The major expense is actually just getting to financial independence in the first place (as time itself is so valuable and expensive), which then allows one to have the time to enjoy all of these low-cost activities.
Philanthropy, however, is arguably better than any of them. It’s almost completely selfless, it takes very little time, and one doesn’t even need to be financially independent to engage in it. As such, it is probably my favorite building block of my own personal happiness.
Growing up as a poor kid in Detroit, I never thought I’d be here. And my younger self always enjoyed receiving more than giving. But I’ve come to realize that giving truly is better than receiving. And my fortunate situation in life allows me to play in the sun, build a great sandcastle, and share my good fortune with my fellow man. If I’m able to improve the human condition in some small way through that – and be personally happier for it – I can’t reasonably pass that opportunity up.
What about you? Plan to become a philanthropist? Already a philanthropist? Enjoy giving to those who have far less?
Thanks for reading.
Image courtesy of: hadkhanong at FreeDigitalPhotos.net.
Hi Jason, great post and appreciate your own version of the Giving Pledge. You are really in a fortunate position when you are able to devote time and money to causes you care about.
Do you foresee to turn your portfolio into one that aligns with your values and causes on (sick children, animals etc.) at some point?
I know you talked about tobacco stocks in the past and do not want to rehash that debate, but every investment is obviously also a choice. These choices could be in line with causes an investor cares about – whether it is health, climate change, factory farming etc. Or do you just approach your portfolio as a way to generate cash which in turn allows you to do philanthropy?
Not seeking to argue here – it is just a dilemma I face in building my own (modest) portfolio and curious about your thoughts.
Cheers,
Tall Investing
TI,
I’m definitely fortunate. And I guess I’m fortunate to be the type of person who realizes and appreciates that I have good fortune. I’ve noticed some people become miserly and miserable about money, and I’m just so grateful that I’m not that kind of person. They say money is the source of all evil, but we all know that money is an inanimate object. It’s just the way a lot of people respond to money that is a shame.
That’s a great question there about the portfolio. But I don’t plan to make any changes there. I think you could find something wrong with just about any company out there. Moreover, I believe in capitalism, a free market, and individual choice.
Thanks for dropping by!
Best regards.
Hi Jason,
There is quite a few key points here. Connecting happiness to philanthropy and Maslow’s hierarchy of needs is quite insightful and an important point to mention. Giving to others, either by money or time is a real catalyst to boost happiness. I’m currently giving my time and a modest amount of money but I’d expect both will grow over time.
It’s also rewarding to provide this time to family especially with a young child that still appreciates spending time with me- I’m expecting that to change once she becomes a teenager though 🙂
-Mike
Mike,
Philanthropy is really great once you connect all the dots. Once you realize that it benefits everyone involved, it becomes such an appealing way of spending one’s money and/or time. I’m just grateful to be in such a fortunate spot. Although I won’t be able to give like some of my philanthropic heroes, I think I can make a small difference before I’m dead. Makes me feel pretty good.
Definitely agree that spending time with children can offer the same benefits that are mutually beneficial. Although I don’t have any interest in child rearing, it’s a great example of reaching the top of the hierarchy of needs. 🙂
Best wishes!
Pretty epic of you to put your own Giving Pledge on the Interbet for all the world to see. In a world of entitled trust fund babies with fancy cars complaining about “mistreated” they are by low wage workers, something like this is a breath of fresh air.
Sincerely,
ARB–Angry Retail Banker
ARB,
Thanks, man. I do hope it inspires others to do something similar. Ultimately, it’s none of my business what someone else does with their own money. But I think when you see how mutually beneficial philanthropy is, it’s the only logical conclusion to one’s life path.
Cheers!
I think you can really have great points, but I think you sell it a bit short. I think with your financial freedom now you can actually start making that difference now in the lives of those you want to help and I don’t think you should forget it. Not saying you aren’t, but you’re in the unique position that you can literally dedicate years of your life to your philanthropic passion. Money isn’t always the most important part of philanthropy, sometimes time is just as valuable and that is something you can dedicate now.
DD,
Those are some great points there. Although I prefer to give money rather than time for now, I think you should really translate that passion you have for giving time into philanthropic causes that resonate with you, if you’re not already. 🙂
I’ve been doing a lot of research on this, by the way. So if you want to advise me of your passions and where you live, I could surely send over some information on organizations that could benefit from your personal efforts.
Cheers!
Hey Jason,
I spend a bit of time with Ronald McDonald House Charities and have for decades so I appreciate the offer, but between work and that I’m good. I’m taking a bit of time for myself since I just finished my MBA, trying to figure out what weekends are for again after three more years of school. Luckily my company paid for it all so I didn’t incur any cost, but it took most of my weekends for the better part of the last three years.
Another big part that has played into the increased happiness in your life is your new relocation to Florida. Who wouldn’t be happier taking in all that sunshine everyday. If I remember correctly you are from Michigan (Like me)? I have noticed on days when the sun is shinning I’m in a happier state then when it is cold dark and dreary. I live a very active lifestyle and it kills me to stay in doors for so many months of the year as I really don’t enjoy winter activities much. The next big change in my life will be making a move. I’m really hoping to sell my house soon and take all the equity I will receive which I’m anticipating $100k and putting that down on a fixer upper in North Carolina. The goal is to have 0 to little mortgage.
DD,
For sure. The move definitely helped. It helped both in economic and psychological terms. I do sometimes miss the seasons, though. Especially around the holidays. But the winters in the upper Midwest are just too long and cold for me. I could definitely see myself living somewhere with a more mild four-season climate, but Florida’s pretty tough to beat in a lot of areas.
Hope you’re able to make that move down to NC! 🙂
Best regards.
Jason props to you for your pledge re; giving away half of your net worth. While I donate to several causes that I believe in, the most satisfaction has been derived from volunteer work my family has done. We have been puppy raisers for Guide Dogs of America for almost 12 years. People ask how you can give up a dog you have raised form 7 weeks to approx. 18 months. When you see a bind person’s life changed with new found independence the guide dog provides the answer is easy, It gives you quite a rush. We will be taking on dog number 11 soon. My daughter has been a counselor/staff at Camp Ronald McDonald for 10 years and my wife for 4 years, They both think it is the most rewarding volunteering they have done. I highly recommend you volunteer a small amount of time somewhere you are passionate about. Don’t blame me if you become addicted though!
scott,
I personally see myself more like a Buffett or a Feeney, whereby most of my focus, at least early in my life, is on money rather than time. Interestingly enough, Buffett’s sister, Doris, does a lot of hands-on philanthropy. She spends a ton of time combing over personal letters, deciding who to give money (donated by her brother) to. It’s a great story:
https://www.bostonglobe.com/business/2016/08/13/meet-doris-buffett-warren-sister-she-wants-your-help-spending-her-brother-billions/aEc47mXfoSeRkTgal5FgvK/story.html
But I see opportunities to give time away once I have less of it, and once I probably don’t value it quite as highly. I’m depreciating here, so it’s something I’m mindful of. That said, if someone else wants to give time rather than money, I say that’s great. Balances things out pretty nicely. I just have so many opportunities and passions, it’s tough. You only have so many hours in the day, and I just have too many things that consume that limited time. I’m sure things will slow way down in the future, however.
Thanks for dropping by!
Cheers.
Would be interested in hearing more in a future post about your thoughts on things like where to donate, how you pick which to donate to, and basically how to get the most positive impact from your donation. Everyone has personal approaches but I’m interested in hearing what others are doing. As someone with such a good and well thought out approach to raising passive income I would think you have a well thought out approach to how to donate it too…
EG,
That’s a great comment. It’s something I’ve thought a lot about.
I’m personally mixed on whether or not to write about that. While investing is far more objective by its very nature, philanthropy is very personal and subjective. It’s one thing to talk about a broad group of people investing in, say, Apple. It’s quite another to talk about a very small handful of organizations that have some personal meaning to oneself. Saying I give to X and Y organizations probably doesn’t add a lot of value.
Many of the billionaires out there who try to coax other billionaires into giving more (like Buffett and Gates) will gladly extol the virtues of philanthropy, but you hear a lot less about the specific projects they’re involved in. Buffett just gives to the Foundation Bill and Melinda founded. And Bill and Melinda go about doing their thing. Besides, Buffett giving to that Foundation hasn’t prompted me to do the same. Knowing where the money is going has provided me with no value. It’s instead the flow of money from personal wealth/hoarding to global improvement that inspired me.
I think it’s the broader message of how giving helps and improves oneself and the world around them simultaneously that I’d rather concentrate on.
Best wishes!