Give what?

The greatest gift one can give is your TIME, because it’s limited

Sam

Since my blog is centred on finances, and while many would agree with me that there’s many things we can give away, but one very practical and efficient way of giving, is giving your money. When you give your time and effort, it only means you are left with lesser time, and energy for something else. However, when you give your money, in a very efficient way, you can never run out of money. Hence gifting money is one of the most efficient way of giving. When you give, the beneficiaries (direct or indirect) can better utilise it in their own way while you remain focus on what you do best; making money. That’s the approach of Mr Warren Buffett if you study in depth on how he manage his wealth now, by passing the philanthropy part to his children and his good friend Bill, Bill & Melinda Foundation.

That being said, I’m not encouraging you to give money to children, and hence spending lesser time on them. This is definitely a no go in parenting! Gifting money is transferring part of your wealth from the haves to to haves not. It is definitely not just limited to philanthropy, but also to the people around you, your children in particular, and also the community which you are living.

Why do you want to give while you are alive then?

1. Happiness never decreases by being shared. When you give, someone benefitted in financially. Their lives could have changed for the better, depending on what cause you support. And you? You become happier and more purposeful as you have impacted someone’s life

2. You wouldn’t want to one shot give all your wealth to your descendants. Come on, if your 18 year old son receive a $1m on your D-Day, what will he do then? If I can, I’ll give them (my children and loved ones) in parts, and observe how they spend it. I’ll follow on by helping them to manage it properly. If they lose it, make sure they learn it. I’ll give again, until they learn it. If they never is going to learn it, at least you know the remaining money should be given some other deserving parties instead!

What if one dies too early and unpredictably?

We always have to plan for the mishap which can happen anything. Just the other day, I was electrocuted by a small voltage while trying to be a part time electrician cum handyman!

One way one can do is to create a STANDBY TRUST. It’s like a Will, but a bit more advanced and flexible in terms of managing your assets when you are no longer in this world. You can simple write it as such way that if you were to leave the world before your children grow up to a adult age, they can receive X amount at age 18, XX amount at 21, and XXX amount at 25. If they acquire XXXX amount by 30 and is free from drugs or criminal charges etc, they be entitle the the remaining 1-X-XX-XXX amount. Check out from your Estate Adviser to enquire more in details.

We enter the world with nothing, and we shall leave the world with something. In between, we definitely should do good to the community which help us grow as a person.

Sam