If you are anticipating potential gifts to buy such as Christmas food hampers, holidays, big dinners to cook, possible travel, and another year where you did not save as much as you had hoped, that time of the year money can feel a little bit tight. But this period can also help remind you that there are good reasons to shift the focus from your commitment and finances and share what you have with friends, family, and even strangers.
The purpose of this article is to improve your finance and your relationships, too, as what good is your money if you keep fighting with your partner in your relationship all the time, and th thought of discussing cents and dollars makes you queasy.
In this article, you will identify two “money” benefits and two “love” benefits to sharing and the reasons it is essential to give.
Do for the love of it
Less stress. Better health.
Helping out another does also help you; call it a blessing, call it karma, or get fancy and quote John F Kennedy, “The rising tide lifts all boats”
Helping others does not only help everyone but also improves their life. When an individual is supported, it will positively impact the next individual and the next, and the next, and the cycle continues like that.
A study by the University of Tennesse and Johns Hopkins University revealed that the charitable givers experience lower blood pressure and d reduced rates of stress compared to the people who do not give
Your children learn to give.
You should teach your children that life is not just about amassing as much money as you can. Show your kids that it pays to be helpful and considerate to your fellow man. This will give your child absolute freedom if they learn that money is not everything.
Financial Perks to Giving
Write off donations.
Even your national government thinks that the act of giving is a good thing. Governments encourage you to practice giving to people by offering you a tax break when you donate to qualifying organizations.
The executive of H and R Block’s Tax Institute, Kathy Pickering, claimed that to get the tax deduction, people should keep a receipt of the donation they gave, a not of the company’s name, and the exact date and fair market value of all non-cash goods.
Avoid taxes on stock gains by donating.
Suppose, by any chance, you have sizable capitals gains on winning stocks you have been holding for about a year, and you are considering a significant gift. In that case, you should get a double benefit by donating these stock winnings instead of selling them. This will enable you to claim a full tax deduction for their current market value, pay the capital-gains tax, and finally donate the stocks that have diminished proceeds.
However, you are limited to getting deductions of such stock gifts up to thirty percent of your adjusted gross income.