When you’re on a tight budget, likely the last thing on your mind is giving money away.
Sure, many of us donate a few bucks once or twice a year. But how many of us regularly donate our money?
No matter your financial situation, there is always someone in a worse position than you. Donating your money to help those less fortunate means that you are acknowledging that, relatively speaking, you have more than you need.
On the other hand, giving money away when you’re on a tight budget can be a challenge. It can even be downright scary to give money away.
So, how do we find the balance?
To start, we can identify the reasons we should be donating regularly. Here’s why you should be donating, even while on a budget.
Help those less fortunate
So many people out there are having a way more difficult time than you. As low or broke as you might feel sometimes, the situation for many others is far worse.
Donating money can be as big or as small as you can handle. Large donations are always in demand, but even giving a few cans of soup to your local food shelter helps more than you would think.
Your money is going to better those people and organizations around you and a lot of them can only survive off donations. Any bit you give really can make a difference!
Gives you motivation
Donating money reminds yourself of what truly matters.
Money is important, but it isn’t everything. Giving some of your own money away through donating reminds you how lucky you are to have any money at all to give to someone else.
Donating also puts a bit of stress on your budget. When you make giving a priority, at some point, you will have to choose between buying something for yourself, or giving that money to someone less fortunate. You’ll become wiser with your money and you’ll keep your priorities in check.
Donations are tax deductible
While getting a tax deduction shouldn’t be the first reason for giving, it is a bonus to know you benefit from being charitable.
Take advantage of this benefit by keeping your receipts from donations to file during tax time.
There are so many advantages to donating, but how do you actually donate when the budget is slim? Here are a few ideas.
Donate blood
Donating your blood is easy, and best of all, free!
Unlike donating clothes, which are probably overloading second-hand stores, blood is always in demand and always needed.
Not so comfortable donating blood? There are plenty of other ways to donate while on a budget.
Donate time
If you’re really on a tight budget, donating your time can be just as worthwhile.
Find a cause you believe in and spend as much time as you can helping it. Use your strengths to help organizations in need.
For many charities, donating your time is just as, if not more valuable, than donating money. You are saving them from having to outsource many projects that could quickly become expensive.
Clean out your house
Take a look around your house and you’re sure to find a few items you don’t need. Donate these to someone who could really use them.
Something you don’t need could be extremely valuable to someone else. Whether you give used clothes directly to a friend, donate furniture to Goodwill, or auction off home items for charity, cleaning out your house is a great way to become giving. You’ll see that you have way more than you ever could need and you’ll help someone else out in the process.
Editor’s Note: Victoria and I do this every few months. Be sure to take photos and keep records of what you donate – you can claim them as deductions on your taxes!
Partner with paycheck deductions
Many organizations partner with companies to offer donations directly from your paycheck.
Before your paycheck is even put into your account, you will have already donated to an organization! Could it be any easier?
See what groups are active in your community and ask your company if they offer any partnerships that might be of interest to you.
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Giving money away can be intimidating when you feel like you don’t have enough. No matter where you are in your financial journey, donating will always be a worthwhile sacrifice.
The best way to remember how fortunate you are is to share what you have with others. Not only are you spreading good, but you are focusing on your budget and building wealth spread far beyond monetary funds.
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Donating money or time is very important in our household. We have been the benefactors of small acts of charity of our family, but, we also know of good organizations that help others domestically and abroad that are truly in need of help.
Living in America is a blessing that many others have not experienced, so this too is a reason we try to help foreign families through charities like Compassion Child or World Vision that allow you to “adopt” a child from an impoverished nation with monthly donations.
World Vision is such a great charity! My wife and I have donated to them for a few years now.
Great suggestions on ways to give even if you don’t have much money! I think it’s easy to fall into the trap of thinking you can’t give if you don’t have extra money and many charities will gladly accept other types of donations. I actually prefer to give time when I can, because it’s worth more to me than just writing a check and you get to tangibly see how what you’re doing is helping.
Great points. Even for those who are at a low point in their finances, I think donating time to an organization can really put your personal situation into perspective.
We love donating our time and money, even as we are working to dig out from under LOTS of consumer debt. Donating helps us to remember how good we have it and makes a difference in the world at the same time.
Love it! I think that’s a great perspective to have.
This is so important. We donate both our time and our money. Each year, I collect donations at my daughter’s school for a local shelter and we deliver them with some of the kids. The generosity of those donating brings tears to my eyes each year as I sort those donations in my garage. (We also serve meals at the homeless shelter – such a rewarding experience!)
We donate our money, but not often enough, in my opinion. I’ve recently decided we need to set up a separate account for giving so it is easier for us to give more often. On my agenda for the weekend!
That’s awesome to hear how much giving back has impacted you. For people who don’t have much, the little effort you put in makes a huge difference to them.
Great ideas about how to donate without using money – blood is a great example! Typically people think of blood donations after a huge disaster, but the reality is that they need those contributions year-round.
Find out if you are a universal donor – if you are – you are a prized commodity!
Thanks for sharing!
Blood is such an easy and free way to donate. It only takes as long as a lunch break to do!
I think donating your time and donating items are great alternatives to donating money.
Agreed! No reason not to donate.
A lot of charities like St. Jude Children’s Research Hospitals, they’ll take donations as little as $25.00. People think you have to donate thousands of dollars but if you don’t have that then donate what you can. Later on when you are making more you can always give more.
Love that. It doesn’t take a lot to make a difference now!
This is so true, donating even on a tight budget has so many advantages. When you donate to someone in need, you have a much better perspective on your own situation and I love the reminder that you can donate your time, it does not have to be monetary. Thanks for the post!
Agree infact also when I was in debt I choose to make a long distance adoption ( and I am still helping), then I donated several clothes that I’ve bought but never wore (and I know that I’m in good company), now I do a serious closet declutter 3 times per year choosing what donate, swap, try to sell and same things for books, I love them but I’m keeping only that I love read millions of time…
I love this – we donate time at a local dog shelter and a lot of the dogs are there because their owners were made homeless. Such an awful situation to be in anyway, and then you have to give up your dog, otherwise you’ll have to live on the streets.
I’m on a pretty tight budget with some debt to pay off, so I can’t afford to donate money (apart from £3 a month sponsoring a dairy cow’s retirement, but that’s a gift to a friend), but volunteering is an important part of my life. It’s also a great frugal hobby!
I may not have the money to buy fancy jewellery or travel much, but there’s a roof over my head, which is more than many people have.
Agreed! I think donating on any budget teaches financial discipline and helps keep your heart soft toward those in need. The idea of waiting until you have “more” or “enough” (unless you have no income, but as you said you could donate time or goods), is dangerous because it’s easy to keep pushing that day until later, and never giving anything.
I totally agree with you when you said “No matter your financial situation, there is always someone in a worse position than you”! It is important to look at the bigger picture in life and give back to your community! If you are tight on money, donating your time and any items that you don’t use anymore are great ways to be charitable!
Agreed! There is always some way to help out someone who has it worse than you.