Generosity: The Most Ignored Factor in Wealth Creation
Generosity: The Most Ignored Factor in Wealth Creation
This article was first published on Medium.
The internet is filled to the brim with information on how to build wealth. It could be because, for most people, that’s their ultimate goal and, thus, a subject they are likely to conduct an online search on. The weblink they’re most likely to click on would be a blog or YouTube video that offers financial advice.
For most individuals who have been persistent in obtaining financial independence, they have come across standard and conventional wisdom.
Typically, this wisdom emphasises the need to stay mentally and physically healthy, to save, to invest, to live below one’s means, and to be friends with people you aspire to, among other factors. One will certainly find the same advice in different forms, even in self-help books.
Now, one factor that most financial advisors seem to speak very little about is generosity. Being generous, just like other important factors of wealth creation, can equally help individuals build wealth. If there’s one thing that the one percent do more than the ninety-nine, it’s being generous (Allen 2018, 52).
It could be argued that they are that way because they have a lot and thus can afford to give; however, money only augments your primary nature, so as a matter of fact, they might have been generous individuals even before they amassed wealth. If you’re not convinced, regardless of the bold assertions made, that generosity is equally a key factor in wealth creation, please keep reading.
What is Generosity?
Being generous doesn’t only mean having the propensity to gift other, less financially fortunate people money. Generosity is multifaceted and can manifest in different forms, including:
Time and attention: Simply lending a listening ear to someone, despite your busy schedule, is a significant act of generosity. So is participating in volunteer work, mentorship, and making time for communal labour.
Skills and knowledge: When you share your expertise, skills, or knowledge with others for free, it is an invaluable form of generosity. This might involve free tutoring, providing professional advice, or generally providing pro bono services.
Kindness and empathy: Acts of kindness, compassion, and empathy towards others can be considered potent forms of generosity. When you offer emotional support, when you genuinely understand other people’s struggles and therefore go out of your way to show them sincere kindness, you are being generous.
Resources and material goods: Giving material goods such as food, clothing, or books to those in need by donating these items to community centres or churches is an act of generosity.
Encouragement and moral support: When you provide encouragement, positive reinforcement, and moral support, it’s not just a generous effort but can also positively impact someone’s life as it helps them build confidence and stay motivated.
Few proponents
The number of successful businesses born with the mindset of helping people and providing solutions to people’s problems is countless. Tesla, Amazon, Alibaba, AliExpress, Uber, and Apple come to mind. As Andrew Carnegie puts it succinctly, “No one can get rich unless he enriches others.” In his recording of The Strangest Secret, Earl Nightingale asserts a similar stance when he says:
Your success will always be measured by the quality and quantity of service you render. Most people will tell you that they want to make money without understanding this law. The only people who make money work in a mint. The rest of us must earn money. This is what causes those who keep looking for something for nothing, or a free ride, to fail in life. Success is not the result of making money; earning money is the result of success, and success is in direct proportion to our service. Most people have this law backward. It’s like the man who stands in front of the stove and says to it, “Give me heat, and then I’ll add the wood.” How many men and women do you know, or do you suppose there are today, who take the same attitude towards life? There are millions. We’ve got to put the fuel in before we can expect heat. Likewise, we’ve got to be of service first before we can expect money. Don’t concern yourself with the money. Be of service… build… work… dream… create! Do this, and you’ll find there is no limit to the prosperity and abundance that will come to you. (1957)
P. T. Barnum, believing in the same principle, dedicates a whole chapter to being charitable in his book The Art of Money Getting. He writes:
Of course men should be charitable, because it is a duty and a pleasure. But even as a matter of policy, if you possess no higher incentive, you will find that the liberal man will command patronage, while the sordid, uncharitable miser will be avoided.
Solomon says: “There is that scattereth and yet increaseth; and there is that withholdeth more than meet, but it tendeth to poverty.” Of course the only true charity is that which is from the heart.
The best kind of charity is to help those who are willing to help themselves. Promiscuous almsgiving, without inquiring into the worthiness of the applicant, is bad in every sense. But to search out and quietly assist those who are struggling for themselves, is the kind that “scattereth and yet increaseth.” But don’t fall into the idea that some persons practice, of giving a prayer instead of a potato, and a benediction instead of bread, to the hungry. It is easier to make Christians with full stomachs than empty. (1880, 45)
Barnum quotes Proverbs 11:24 in his submission. There are, surprisingly, other religious and philosophical texts that convey similar principles about generosity. A few examples are:
The Holy Qur’an (Islam): The example of those who spend their wealth in the way of Allah is like a seed of grain that sprouts seven ears; in every ear there are a hundred grains. Thus Allah multiplies the action of whom He wills. (Surah Al-Baqarah 2:261)
Bhagavard Gita (Hinduism): “Charity given out of duty, without expectation of return, at the proper time and place, and to a worthy person is considered to be in the mode of goodness.” (Bhagavad Gita 17.20)
Tao Te Ching (Taoism): “The sage does not hoard. The more he helps others, the more he benefits himself, The more he gives to others, the more he gets himself.” (Tao Te Ching, Chapter 81)
Guru Granth Sahib (Sikhism): “He who earns through honest labour and shares with others, has found the way of the Lord’s path.” (Guru Granth Sahib, Raag Saarang, Panna 1245–19)
Dave Ramsey, a personal financial expert, also talks extensively about generosity, as you will find in this video. Also, billionaires like Warren Buffet, Bill Gates, and Belinda Gates are big on generosity, to the point that they created an initiative called the Giving Pledge. A few pledge signatories, apart from the creators, include Elon Musk, Mark Zuckerberg, Priscilla Chan, and other wealthy individuals listed here.
How is being generous relevant to wealth creation?
Well, for starters, wealthy people seem to directly and indirectly agree that it is important for wealth creation. However, let’s not end the discussion on that note based on that merit. Let’s delve into practical reasons why being generous is relevant to building wealth.
Social capital and networking: This is quite self-explanatory. Being generous helps in building strong personal and professional relationships. A network of supportive and loyal people is likely to be at your beck and call in pressing times. While you are accumulating assets or conducting business, there will definitely be times and situations that necessitate your calling on these individuals. Of course, because of reciprocity (Allen 2018, 41–42) — when you help others, they are more likely to return the favour — you are guaranteed mutual support, which leads to greater opportunities and adequate resources to tap into.
Enhancement of reputation: In business, reputation is everything. It is the reason clients may feel comfortable or uncomfortable doing business with you. Equally important is that with a good reputation, you are able to build a solid clientele, retain clients, and generate repeat business. Being generous can give you a good reputation. Which in turn opens up new opportunities, career advancement, and business growth. It goes without saying that a reputable business is the essential recipe for wealth creation.
Mental and emotional well-being: Generous behaviour is linked to increased happiness and reduced stress (Allen 2018, 3, 22–26), which improves an individual’s mental and emotional wellbeing. The outcome is that a positive mental and emotional state enhances productivity and creativity, contributing to better performance and, therefore, wealth creation in the long run.
Final thoughts
While generosity remains the most ignored factor that influences wealth creation, it certainly plays a crucial role. It can create opportunities, foster strong networks, build a positive reputation, and provide personal fulfilment and well-being — all of which contribute to long-term financial success. As aforementioned, generosity, although it can be monetary, takes different forms as well.
So go ahead, sow generosity, and experience the positive impact it can eventually have on your finances.
So what do you think?
Works cited
Allen, Summer. 2018. “The Science of Generosity.” Greater Good Science Center. May 2018. https://ggsc.berkeley.edu/images/uploads/GGSC-JTF_White_Paper-Generosity-FINAL.pdf
Barnum, P. T. 1880. The Art of Money Getting. New York: Crowell & Kirkpatrick.
Nightingale, Earl. 1957. The Strangest Secret. Recorded November 19, 1956, in Chicago, IL. Nightingale-Conant Corporation. Vinyl record, 31 minutes.