Dr. Nicholas E. Michels, CFP®
For many people, life isn’t just about saving and accumulating money; it’s about being responsible and doing something meaningful with that wealth. Whether you want to give back to your family, support your favorite causes, or even honor God, there is a great way to do this: tithing and charitable giving. This is a popular choice for many of my clients, and it can be a great way to make a positive impact with your wealth.
In this article, I’d like to discuss how to incorporate tithing and charitable giving into your personal wealth plan. By doing so, you can reflect your values, morals, and religious beliefs through your spending. Read on to learn more ideas on how to include this important piece into your overall financial picture.
Talk it Over With Your Family
Discuss your tithing and charitable contribution goals with your spouse and family. Are they on board? Do you all have a clear vision for how you’ll use your money to accomplish your philanthropic and faith-based goals?
Maybe you want to give 10% of your money to your church through tithing. Maybe you want to use additional funds to support local organizations in your community that are helping fight homelessness and poverty.
We’re all called to different purposes. Whatever your purpose is, set aside some time to discuss it with your family. Wealth is a special gift. Use it to support the causes and organizations you’re passionate about.
Discuss Charitable Giving and Tithing With Your Financial Advisor
Once you’ve got the family on board, it’s time to discuss your tithing and giving goals with your financial advisor. Ideally, your financial advisor is of the same mindset as you and supports your decision to continue tithing and giving even if you’re still paying off debt or saving for retirement.
At Michels Family Financial, we won’t ever tell you to limit your giving just to grow your net worth. If charitable contributions and tithing are important to you, we’ll help you build that into your cash flow analysis, so you can ensure you have the funds to fulfill those goals each month.
Depending on your situation, a donor-advised fund, qualified charitable distribution, or charitable trust may be a great way to fulfill your legacy and estate planning goals.
Include Tithing and Gifting in Your Cash Flow Analysis
We’ve all heard the saying “Pay yourself first.” But what about “Pay yourself second”? If tithing and giving are at the top of your list of financial priorities, consider dividing up your paycheck in this order:
- Set aside part of your paycheck for tithing and charitable contributions.
- Set aside a portion of the remaining funds for your savings and debt pay-off goals.
- Use the rest for monthly expenses.
Earmarking funds for tithing and giving first will help hold you accountable and ensure you’re meeting your goals. You can always go back and adjust the numbers in any three categories if you feel your money isn’t stretching as far as you’d hoped.
Let Us Help You Reach Your Giving Goals
Michels Family Financial gets it—you’re not just looking to amass wealth, but also to use your money to reflect your values and beliefs and make an impact in the world. If you’re curious about how to make charitable giving part of your financial plan, please get in touch! We’d be glad to discuss it with you. Schedule a free consultation by emailing at [email protected].
As the founder, CERTIFIED FINANCIAL PLANNER™ professional, and National Social Security Advisor at Michels Family Financial, a financial firm founded on principles. Dr. Nicholas E. Michels spends his days helping clients find financial confidence, clarity, and results they desire. With 15 years of experience, Nick is passionate about helping others create a better life for themselves and their families, ensuring that their money is a blessing, not a stress-ridden curse. Nick prioritizes financial education, empowering his clients with the knowledge that will help them achieve financial security, peace, and happiness. Nick strives to build long-lasting relationships so he can design comprehensive financial plans that help them live out their dreams, using his proven Complete Wealth Management process.
As an accomplished basketball player, Nick became a two-time first-team All-American and Academic All-American basketball player at Dallas Baptist University and was DBU’s 2008 Male Athlete of the Year. This opened the door for him to spend many years traveling the world with Athletes in Action. Not only was this an amazing experience, but it also taught him a lot about pursuing something with passion and finding different ways to help and serve others. His athletic background helped lead him to this career because it gave him the confidence and ability to clarify needs and help his clients succeed.
Outside of work, you can find Nick staying active and spending time with his wife, Chelsea, and their three children, Daegen, Kinsley, and Nicholas Brooks. To learn more about Nick, connect with him on LinkedIn.