The True Value of Money: Financial Freedom, Giving, and Finding Purpose

Here is an interesting question: What is the true value of money if it is set aside but never needed? If the ability to use the money is what gives it value, then is there any value in accumulating beyond what can be personally used?

For some, the answer might be opportunity. For others it might be to leave a legacy. Regardless, we can’t escape the real question, how much is enough?

Not sure where to start? It’s important to remember there are only 6 long-term uses of money.

1. Become financially independent
2. Become debt-free
3. Meet lifestyle expenses
4. Meet family needs
5. Start a business
6. Maximize giving

There is nothing that we can spend money on that doesn’t fall under one of these categories. So, if the first 5 are met, then we have to choose whether to use excess resources to increase our standard of living or focus on the 6th and begin giving those additional resources away. A thorough investment plan can paint a picture of how much we can realistically spend in the future which can also give us an idea of how much we could share once we’ve met the needs we’ve identified.

Wondering about where to give? Ask yourself these questions:

• What brings me joy?
• What am I passionate about?
• What has had the most positive impact on me or my family?
• What are the things I wish I could change?

Rest assured, there is a ministry or organization that will probably square with what you care about most and although there are numerous ways to incentivize giving via tax deductions, there are also physiological benefits to giving as well. In God and Money, authors John Cortines and Gregory Baumer summarize the emotional benefits of giving: Intentional and regular practices of generosity have been associated with the release of a slew of good chemicals, including oxytocin, dopamine, and various endorphins. These chemicals are the same ones released after a hard workout or after a particularly pleasurable experience. In fact, generosity is strongly and clearly associated with a sense of purpose in life, personal happiness, and overall personal health (1). Who knew that scientifically, it truly is better to give than to receive?

Jeff Hall, CFP®, CIMA®, CKA® is a Partner and Senior Advisor with Rather & Kittrell.

(1) John Cortines and Gregory Baumer, God and Money, (Rose Publishing, LLC, 2016), 83