How to Build Generosity Into Your Financial Plan - 13

Action Item: Review your Christmas spending or charitable giving from this year and figure out a plan to make it easier on yourself next year. Set up either a sinking fund for Christmas spending or a donor-advised fund for charitable giving (bonus points if you do both!).Summary:In this episode, I break down how to build generosity into your financial plan beyond just the holiday season. I share how my wife Rebecca and I use sinking funds to make Christmas gift-giving stress-free by saving throughout the year instead of scrambling in December. Then I dive into the tax advantages of charitable giving, explaining why donating appreciated securities can be way smarter than donating cash, and how donor-advised funds (DAFs) let you get an immediate tax deduction while spreading donations throughout the year. Finally, I walk through Miranda and Chris's case study, showing how they set up a simple donation system using a DAF to support their church, a local nonprofit, and disaster relief without the mental load and decision fatigue.Resources & Links Mentioned:Fidelity Charitable Planning Guide: https://www.fidelitycharitable.org/content/dam/fc-public/docs/advisors/charitable-planning-guide.pdfKiplinger article: "Giving Tuesday Is Just the Start: An Expert Guide to Keeping Your Charitable Giving Momentum Going All Year": https://www.kiplinger.com/retirement/how-to-keep-charitable-giving-momentum-going-all-yearCFP Board article: "How to Incorporate Charitable Giving Into Your Budget": https://www.letsmakeaplan.org/financial-topics/articles/charitable-giving/how-to-incorporate-charitable-giving-into-your-budgetArticle: "Do Millennials Have the Best Personal Finance Habits?": https://www.prosper.com/blog/millennials-personal-finance-habitsDaffy (donor-advised fund platform): https://www.daffy.org/sjayf98/inviteMonarch Money: https://monarchmoney.sjv.io/e199P6Timestamps:[02:36] My story: How Rebecca and I use sinking funds to save for Christmas gifts throughout the year[04:00] The system: Calculating your Christmas budget and dividing it across 11-12 months[09:15] Tax advantages of charitable giving and AGI limitations[14:12] How to legally "game the system" by donating securities and keeping cash[16:00] What is a donor-advised fund and why you need one[19:00] Why our generation is better at talking about money (and why it matters)[21:25] Four ways to incorporate charitable giving: time, non-cash items, securities, and DAFs[23:42] Case study begins: Miranda and Chris want to donate more strategically[27:00] Their problems: No tracking system, tax complexity, mental load, lack of automation[29:17] How to figure out how much to donate (start with 5% and review in 3-4 months)[30:32] Chris's big tax win: Donating appreciated tech stocks directlyEmail me at [email protected]