In the 1980s a movie called “Brewster’s Millions” showed just how difficult it is to give away money. The premise of the movie was that to inherit $300 million, the main character had to give away $30 million in 30 days. The problem was that the harder he tried to give away money, the more money he ended up making. In the end, he had to come up with some very creative solutions to give away the $30 million. While the movie was fictional, the truth is that one of the best ways to multiply wealth is to give it away. Although the concept may seem completely counterintuitive, the truth is science backs it up. Here are three reasons giving increases wealth

  1. Charities decrease taxes

The more work that charities do, the less work that falls to the government. Time has shown that NGO’s are far more effective and can do a lot more with less than government organizations. Tax increases are voted on by the population. When individuals are contributing to charities, they are less likely to vote for tax increases for public services that can better be addressed by charities. Also, charitable contributions themselves are tax deductible, which means generous donors get a double benefit.

  1. Giving helps you appreciate what you have more and spend less

Most people are competitive by nature and spending is one of the ways we complete. Giving to charity shifts your worldview from focusing on those who have more than you to those who have less. When you focus only on people who have more than you, it inherently causes you to try and work harder and spend more to keep up. When you focus on those who have less than you, it causes you to appreciate what you have more and spend less. Spending less inherently increases your wealth all on its own.

  1. Giving increases income

Studies have shown a direct correlation between giving and income levels. The more people give, the more their income level rises. Now, it may seem that people who make more would naturally give more, but studies have shown that the giving comes first and the increase in income follows. Whatever the reason for it is, if you want to make more money, give more.