Finding your ‘generosity purposes’
The more the merrier. That’s the ultimate money math for most of us. We do not look beyond the happiness more money invariably brings. But Derrick Kinney thinks differently. Happiness is what you do, not what you have, he writes in Good Money Revolution.
Connect your cash to a cause, your money to a movement, your profits to a purpose. This is what adds meaning to life, he adds. Discovering one’s “generosity purpose” is also the first in the seven-step good money framework he draws up. In the organisational context too, it makes immense business sense to give. Connecting products and services to these “generosity purposes” will benefit all stakeholders — employees, customers, and obviously the company. He brings in an interesting reference made by author Bea Boccalandro—how researchers have found that “if you look at a regular ad, selling you… a car [for example], and it has nothing to do with any societal cause out there, you respond a certain way, just biologically. If that same ad helps… the US Olympic team or puppies or some societal cause, the way we react to that ad, biologically, what happens in our brain cells, is similar to gazing into the eyes of someone we love.” Throughout, Mr Kinney stays off the jargon and breaks down his financial wisdom into easily understandable nuggets. This is not hard for him to do since he is host of the popular Good Money podcast. He is also the CEO of Good Money Framework, inspiring influential business and thought leaders to make more money and use it for good.
“… You make money twice. First, work hard to earn it. Then you must work hard to wisely invest and grow it,” he writes. Waiting to invest is the biggest mistake ever, he adds. Equally damaging is to not have clear objectives and goals as to why one is investing. He explains the three buckets of investing — invest for yourself, invest in yourself, invest in others—and also the three levers that caused an increase in his assets: Save more, Crush your debt, Earn more. His money lessons capture the core of personal experiences as well as insights garnered over the years — whether it is the retirement redemption plan, money lessons for kids, reasons for not giving, or how to ask for a raise.
He dispels in an interesting way the popular notion — seemingly ingrained in childhood—that money is “bad” and those who have a lot of it are villains. He refuses to join the detractor club and tells us why it is important to unpack our history with money. He refers to the journey of people like Jeff Bezos and Elon Musk from the gazillionaire club. They had an idea, took a risk, went through multiple disappointments and failures, and through perseverance and grit built a valuable brand. Becoming financially successful takes risk. It requires stepping out into the unknown, pursuing one’s goal without knowing whether it will work or not, and having the desire, initiative, and the stick-to-itiveness to keep at it. His advice is: Learn the principles that help create success and apply them to your lives instead of wasting yourselves on criticism.
He also introduces us to the concept of the “eternal economy” wherein the present value of money is worth more than its future value. Giving today adds value to lives, and that value is projected forward into eternity. Many people leave their greatest gifts to their families when they die, but money then gets locked up and cannot be used for good today. That’s like a farmer waiting for a few years to plant seeds thinking they will improve in the package, Mr Kinney points out. The seeds get better once they are in the ground and can start to grow.
Money is the most powerful lever for positive change, and giving definitely brings in a lot of value. But what’s the ideal “giving budget”? Mr Kinney suggests four steps: Give 1 per cent now; increase the percentage each year; make giving 10 per cent your goal; aim toward living on 10 per cent and giving away the rest. Also, we do not need a lot of money to start giving. Start small, but early. The shift in thinking is most important—the readiness to give away a part of what you have earned to someone else makes a huge difference. As for the “people portfolio”, he asks us to look beyond the obvious. There may be people in need—family, friends, or strangers. They are not necessarily hungry or homeless but could perhaps achieve their dreams with a little boost.
Once we start giving, the cycle keeps paying dividends, something that cannot be achieved with any other investment. And as he says, the way we choose to use our money can change a whole gamut of things —our family, health, happiness, fulfilment, and the world at large. So, he exhorts us to accept the Good Money Challenge: Earn more. Save more. Give more. Mr Kinney’s is quite a persuasive voice and the circular continuum he suggests is for all those looking to create a lasting impact on the world.