[Trialling a new way of giving] Hey everyone, Ive decided to try out a new way of giving this coming year (2015) and wondering if anyone has any thoughts thoughts/feedback. For me it feels like a relatively stable way of giving and also might make it easier to give more and give sooner (I support ‘giving sooner’ rather than ‘giving later’ btw). I call it Cap and Give: how it works is that you set yourself a savings cap of a certain amount of money, then give away everything that goes over that cap. For my trail, the cap will be 3 months salary,* and I will give on the 1st of every month, all through 2015. The cap is flexible and can be adjusted on requirement**. For instance, if you needed to save up a certain amount of money for a mortgage or something - or if youre life situation changes and you feel you need a larger savings buffer if something goes wrong - you can raise the cap. If you ever do raise the cap, the difference should be filled relatively quickly compared to other ways of giving (like giving a % of income, or capping salary at a certain level) – since you’ll not need to donate anything until you exceed the new savings cap. Further, if you ever encounter unexpected expenses, or living costs rise/income falls for some reason, the amount you give will be reduced over those periods. Essentially this way of giving will absorb fluctuations in income/expenses - you pay less in the bad times/are on a lower salary and more in the good times/are on a higher salary. There are a few disadvantages of this method I can foresee, which include: - This kind of giving method may be more difficult to explain to laypeople, and thus harder to convert them. - There may be less pressure to live frugally, so over time expenses may rise which would lower the amount you give. - Might be more difficult than other methods of giving – e.g. not seeing your savings go up could be depressing. Let me know if you have any thoughts, Ill keep you posted on how things go. *For transparency, this 12,000 Singapore dollars (currently equivalent to 5848.60 GBP or 9597.70 USD). My salary is not expected to change at all over the trial period of 12 months. I do have a small amount of other money locked away elsewhere (in case Ive misjudged the amount I money I need if theres a serious disaster) - but I dont intend to touch this. **I do not intend to adjust it for this trial however.
Posted on: Tue, 02 Dec 2014 08:39:06 +0000
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