The Karmic Capitalist: Should I Wait Until I’m Rich to Give Back? (Plus: Auction and Tim Q&A via phone) 70 Comments

Written by Tim Ferriss Topics: Filling the Void

Should I wait until I’m rich to give back?

This is a question I have fought with a lot over the years.

Spending time with the upwardly mobile in places like NYC and LA, one can’t help but believe the consensus: It is better to wait until you have made a lot of money before trying to change the world. The idea (excuse?) is that you can then have a greater impact. But is it really true?

I no longer think so. There are a few reasons I have decided to commit at least $100,000 of my own money to education in the next 12 months:

1. Giving back is like investing with compound interest.

Less money earlier often beats more money later.

$1,000 invested now may very well have a much greater impact — due to growth and ripple effect — than $10,000 invested in ten years. How many world leaders and innovators could you create or save if you acted now instead of at an undefined “someday”?

Here’s an extreme example of how time changes value: Manhattan was bought for $27 in 1626. Invested at 7.5% then, compounded yearly, that $27 would be worth $22,224,711,000,000 now. Or compounded quarterly: 4.73442004 Ã— 10^13 ($47.3 trillion). To put that in perspective, the entire yearly GDP for the USA these days is around 7 trillion. (Thanks to Ryan for this example).

Act now and very little can do a hell of a lot.

2. Prevention costs much less than cure and is ultimately more powerful.

For example: to educate a girl for 10 years in the developing world, ultimately producing an economically self-sufficient family and ending the cycle of poverty, costs a total of $2,500 with Room to Read. How much does it cost to provide aid or welfare to an entire family for decades on end, not to mention treating the famine, disease, and violence generated from this collective poverty? Look at Africa and the $50 billion+ that has been given as aid.

Charity doesn’t work — empowerment does. The good news is that the latter depends on acting early and precisely, not lots of money.

3. Giving is an investment in yourself.

Giving shouldn’t be viewed as losing anything.

Based on previous polls on this blog, 32.2% of you make $51-100K per year and more than 20% make $100-200K per year. Regardless of income, could you afford to empower 100s or 1,000s of others with 5-10% of it, especially if it permanently increased your feeling of self-worth and contribution? Of course.

In fact, this self-perception boost is one of the greatest bargains, and performance enhancers, on the planet.

4. Changing the world is cheap.

Changing the world doesn’t require much money. Again, think in terms of empowerment and not charity. How much were Gandhi’s teachers paid? How much did it cost to give Dr. Martin Luther King the books that catalyzed his mind and actions?

Just imagine that you and your friends make $40,000 per year. Imagine that you convince just 5 of them to join you in building a children’s school in Nepal dedicated to your parents (or your lifelong friendship). The total cost? 5 people x $3,000 each= $15,000. I know that most people, myself included, will put $3,000 of crap on credit cards in the next few months that could instead create a miracle… a miracle that you can visit.

You and your friends could plan the trip of a lifetime in 6-18 months to visit the completed school, teeming with dozens or hundreds of students who greet you with smiles and thank you letters. You’ll know it’s your school because your names will be on the door.

—-

If that seems like too much, you can finance a girl’s education for 10 years ($2,500) and effectively guarantee a future without poverty to an entire family. How would you feel about yourself if you just did it and pulled the trigger now?

I can tell you — it’s amazing. It changes your life almost as much as it changes theirs, and you won’t miss the $2,500. I guarantee it.

If you haven’t given before, I encourage you to do it now. Just do it. Take it for a test drive and see how it changes you. On the personal side, you’ll feel great about yourself for a long, long time. On the results side, especially with the groups I’ve researched and selected, you’ll measurably improve the world, something few people do, and possibly win some amazing prizes I and others are offering to people who donate this month.

To whet your appetite, check out some of the projects to pick from here. From there, it’s as simple as checking out the next step.

###

[Note: If you want to find my responses to comments/questions below, just search (Ctrl + F) “###”, which I put before each of my responses in all posts.]

Posted on October 4th, 2007

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70 Responses to “The Karmic Capitalist: Should I Wait Until I’m Rich to Give Back? (Plus: Auction and Tim Q&A via phone)”

Richard October 4th, 2007
6:03 pm

Hi,

Nice post. I like the competitive fund raising idea but I don’t know how to justify raising money to win prizes to people.

For example if I ask my friends to donate, they ask me why, I tell them it’s to build a school, then they check out the litliberation website and see that there are also great prizes available, it makes me look like I’m just interested in the prizes and not the fund raising.

I would say a lot of people have the sponsor mindset, where the fun raiser has to do something challenging or out of character to really open people’s wallets. I’m not saying that’s the right mind set, I’m just not sure how to explain that I won a trip round the world because you gave $100 to my charity.

Not that I could win the litliberation prizes anyway (yes, except the recognition!), being a British citizen living in Japan.

Hmm typing all this out made me realise the answer. Don’t just ask for donations, do something worth sponsoring then!

Richard
(^_^)

###

Hi Richard,

This is a great question and another one I wrestled with. In the end, I need to prizes to get some of the PR exposure for the campaign, and many people are motivated to take that first step by prizes. I just want it to be their “gateway drug” into a lifetime of giving.

Also, some people are creating donation pages and giving away their prizes, if they win them, to the biggest donors to the page, etc. Others are simply informing their friends that they will be passing the prizes on to the next competitor if they win.

Hope that helps! Tim
Kathryn October 4th, 2007
6:16 pm

I’m excited about the web 2.0 marketing and PR seminar. However, I want to be sure that I’m available on the specific time and date before I send my payment. I hope we’ll learn the details soon?

###

Hi Kathryn,

The date won’t be determined for a bit, but if you (or anyone else) who pays can’t make it, I’ll refund the amount, so no worries. Best to sign up and then just get the refund if you can’t make it.

Thanks! Tim
Liene October 4th, 2007
6:34 pm

best post ever. thank you for writing this.
Danielle Walsmith October 4th, 2007
6:41 pm

You’re a natural-born fundraiser…have you considered a career-change? You could help change the image of working in the nonprofit sector.

Count me in for the teleclass.

Best,
Danielle
Sweet Talk PR
Concerned Citizen October 4th, 2007
7:04 pm

Tim, I appreciate your good intentions, but consider: in their zeal to give, givers often forget the extent to which they reinforce existing institutions responsible for the lack and limitation already extant. Giving is so often an excuse not to take the kind of action that would pull and replace the roots of said lack and limitation.

Honestly now, how much long-term damage is done by those whose hearts are in the right place but whose actions lead to the perpetuation of impoverishment in so many of its forms? So many have been brainwashed in equating virtue with giving that they can no longer see that the reality is far different and much less forgiving.

###

Hi S!

Thanks for the note. I do agree that giving blindly to the wrong institutions is not a good approach. That’s why I’ve interviewed the CEOs of the groups involved with LitLiberation, and I’ve gone over their financials and results to date. These two groups, unlike many, correct impoverishment instead of perpetuating it.

Few solutions are perfect, but one of the big questions is: how much is the chosen action better than doing nothing? It’s a good question to ask, as criticism about action can also become an excuse for inaction.

Thanks for contributing! Tim
Andrea Zak October 4th, 2007
8:11 pm

You should also consider that “giving back” isn’t just about being able to right a check. I’m very involved with a non-profit organization that works with underserved teens, amongst other programs.

At this point in life, I don’t have any money to give. What I do have, however, is equally valuable: Time. I am on the membership committee working to improve member outreach and retention; I make calls to solicit product donations for program that interest me.

The organization tends to see higher levels of volunteerism in their younger members and bigger donations from less active older members. There are of course some exceptions.

I give back in kind, with my skill sets. At the end of the dya, it’s probably more satisfying that writing a check. I’ll be able to draw my own conclusions in a few years.
Ryan October 4th, 2007
8:19 pm

I like the philosophy of this post a lot, especially the point that prevention is cheaper and better than cure.

What I am wondering—how do you feel about “giving back” through actual work rather than money donations? why not volunteer on a project to help build a school rather than pay for someone else to do it.

Maybe this is irrelevant, as the ultimate point of the post is to convince people to participate in this fundraiser, but I still think its interesting.
Jesse Knight October 5th, 2007
12:08 am

Tim, you might check out a charity run by Greg Mortenson (http://en.wikipedia.org/wiki/Greg_Mortenson) by the name: Central Asia Institute.

He also has a great book - Three Cups of Tea - that explains his approach. As someone who has spent a fair amount of time in the 3rd world I appreciate his outlook.
AllenT October 5th, 2007
7:05 am

These are great points. If we are following Tim’s advice, we should all have a lot more time as well as money. Don’t forget that you don’t need to pull out $2500 to help build a school or make a positive impact. Why not go to Nepal and help build a school, volunteer you time teaching, etc?

Tim I think the program is great. The more you can show people the impact of the program, the more you will inspire people. Images and videos of the actual people and places that you’re working to help might push a few people across the line. Take your VIP’s to the “Ferriss school for children who can’t read good.”
Paula G October 5th, 2007
7:57 am

Great question! I think giving back monetarily and in other ways is crucial to maintaining an attitude of gratitude. Not to mention if everyone waited until they “made it” which is subjective at best and never attainable in many ways (who “makes it”? What does that really mean?) — no one would ever give back in any way.

It doesn’t take big bucks to make an impact on others. Giving with a joyful heart…and giving to the degree that serves you personally given your financial picture — is a very satisfying and attractive thing to do.
Tim Ferriss October 5th, 2007
8:20 am

Hi All!

Thanks for the comments. To answer a few questions:

-Money is definitely not the only way to give back! Let me clear up a misconception about LitLiberation: you DO NOT need to donate any of you own money. The competition rewards the best fundraiser — the person who can influence the most people to develop the habit of giving — not necessarily the person with the biggest bank account. Providing your time and effort is definitely as valid, often more valid, than simply writing a check. Remember: giving back the right way is the same as empowering others. Empowering others takes action, not lots of money.

-The date for the call wonâ€™t be determined for a bit, but if you pay for it and canâ€™t make the date, Iâ€™ll refund the amount, so no worries. Best to sign up and then just get the refund if you canâ€™t make it.

-Jesse, I’m a fan of Greg Mortenson and the Central Asia Institute, but I called and emailed them to be involved with LitLiberation, and no one ever returned the inquiries. I take response time as a good gauge of how quickly non-profits can capitalize on good opportunities, so they are not included in this campaign. I’m nervous about giving my money to any group that won’t return my calls for weeks on end. Perhaps in the future, as I am a fan of what they’re doing in Afghanistan.

Thanks to all! Tim
Marc Krejci October 5th, 2007
8:52 am

Great insight Tim!

I’m in no way affiliated with this organization (other than a fan), but they offer some really practical ways to give both your money and your TIME back to the community. It’s called “Cool People Care”:

http://www.coolpeoplecare.org

These guys are basically just a matchmaking service where they post opportunities to get involved in your community or a cause you care about, and show you how to get involved.

It’s a nice easy way to give something back. I think we are all responsible for contributing to the greater good of our world and there are lots of opportunities out there for doing so.

I’ve even really enjoyed giving (micro-lending) to third-world entrepreneurs using http://www.kiva.org (started by former PayPal founders). Here you can give as little as $25 to a business owner you can vet out right on the site. So as you said above, “Changing the world doesnâ€™t require much money. Again, think in terms of empowerment and not charity.” This is a great way to do that.

Sorry if it seems I’m pimping these sites, but I have really enjoyed using them as a tool to get involved in things bigger than me, and thought you (or your readers) might like them too.

Keep up the good work!

###

Hi Marc!

Kiva.org is great, and their president, Premal Shah, is a supporter of LitLiberation. There is a Kiva.org page for LitLib here: http://www.donorschoose.org/donors/leadershipboard.html?category=22 Thanks for the comment!

Tim Tim
JennLi October 5th, 2007
10:10 am

When I launched my new website last February, I publicly committed 5% of my profits to an amazing non-profit that gives free medical care to the poorest of the poor. (Partnersinhealth.org) I decided not to wait until I felt like I had a surplus to give, and instead decided just to go for it right up front. I have a page on my website called “Difference” that explains what we’re doing to my potential clients.

When I was a freelance photojournalist covering human rights issues, I never felt that I could do enough—give something concrete back. And I couldn’t! I was broke! Now, ironically, as an entrepreneuer, I can do much more. Go for it! Tim’s right. It makes you feel GOOD! —Jenn

###

Hi Jenn!

I couldn’t agree more about not waiting. I still haven’t received my first royalty check for my book, and I decided not to wait on giving the 10%+. I’m frontloading it, and while it makes me a bit nervous, I feel great. The moment to act is now, to be sure. I couldn’t be happier.

All the best, Tim
Never the Same River Twice October 5th, 2007
10:14 am

I’d like to add to Tim’s point about not delaying giving with this quote from Mahatma Gandhi:

“I shall pass through this world but once. Any good therefore that I can do or any kindness that I can show to any human being, let me do it now. Let me not defer or neglect it, for I shall not pass this way again.”

Working in the nonprofit sector, I can say with all certainty that $5 or 1 hour really can make a difference. It can feed a cold and hungry person, or give a book to a child that has nothing. Don’t wait to be generous.
Emil Sit October 5th, 2007
10:30 am

I have a suggestion for improving the http://litliberation.wordpress.com/ front page: add links from the step-by-step instructions to the pages where you can actually execute those steps. Right now, the first link is for the unreal prizes. You could add links from the “US public schools” to the donorschoose page (currently only a small link on the right hand side), and a link from “developing countries” to the room2read page. The verb “Create” calls out for a link to the firstgiving page.

Great idea!

###

Emil, great suggestions. I missed that. I’ve made the changes, and this should improve participation. Thanks!

All the best, Tim
Joe October 5th, 2007
11:14 am

Tim,

You should consider on writing a creativity fundraising manual for entities.

It will be awesome to have pocket of techinques, procedures, ideas, and step-by-step. Lot of non-profit organization struggled to raise capital.

Consider this a way to give back by sharing your expertise and portion of profits can go to charities.

Regards, Joe
The Gospel of Wealth, Revisited | WealthCoaches.com October 5th, 2007
11:32 am

[…] usual, Tim’s got an interesting perspective on the topic.Â Read his post, then tell us what you think of his perspective. Bookmark this […]
Bill Richardson October 5th, 2007
11:40 am

Tim,

Great post! Rich and I have been discussing this topic on our blog under the title of “The Gospel Of Wealth”. There’s this school of thought out there that as we become more wealthy, we are somehow obligated to give back to less fortunate citizens. Rich and I have been discussing whether that “obligation” really exists - or is it just something that the majority of wealthy people do to appease their sense of guilt for having so much money?

Sure, there are plenty of wealthy people who are sincere in their wish to make the world better (Bill Gates and Warren Buffett come to mind immediately), and they see their money as nothing but a tool to achieve their goals.

But, there are also plenty of people who do it as sort of a Public Relations move… make money selling something to people who really can’t afford it, then contribute $100K to Aids awareness in Africa for example.

The question really is - is this obligation? Or can somebody just become wealthy and KEEP their wealth for their own enjoyment?

We’ve linked to your posting here in hopes of getting some more discussion going on this topic.

You and your readers can read our posts on this subject at http://wealthcoaches.com/2007/09/the-gospel-of-wealth/

Awesome job as always,

Bill Richardson
Arvind Devalia October 5th, 2007
12:18 pm

Hi Tim and others,

I totally agree with all you say.

Many years I ago I got involved with this “charity” school in South India at http://www.nirvanaschool.org

It has been the most fulfilling and rewarding thing I have ever done. Through my involvement and that of others, we have empowered 1,000s of children and their families. All for very little in relative terms of time and money.

My first ever visit to Nirvana school was a major life changing experience as you can read here:-

http://www.arvinddevalia.com/blog/2007/01/12/unconditional-love/

So I urge every one to get involved in empowerment contributions - it will be a life changing experience for both the recepients and YOU.

And Tim, from now onwards I shall no longer refer to Nirvana school as a charity school, but as an EMPOWERMENT school.

Thank you Arvind
grammarfreak October 5th, 2007
12:24 pm

hey tim, typo in the sentence below. much peace and love, e

“Line space is very limited, as we will taking questions at the end,”
Drew Golden October 5th, 2007
2:35 pm

Hey Tim-

Great blog post. I’d like to sponsor some books specifically for your library (when ready). How can we facilitate this?

###

Hi Drew,

Thank you for wanting to help me with my own personal library. However, I spoke with the folks from Room to Read and, unfortunately, guaranteeing book donations toward a specific library is out of the organizationâ€™s scope. Theyâ€™ve got an amazing staff in Vietnam whose top priorities are focused on the programs and deserving communities. Asking them to focus on the logistics that this type of donation would require is just too time intensive. That being said, there are still ways to support Room to Read by donating books. You can sponsor a local language publishing title, for example, for Vietnam. More details here: http://www.roomtoread.org/involvement/adopt.html

Thank you for your willingness to help! Tim
the Write Guy October 5th, 2007
2:40 pm

Great post!

I want to give Andrea from the comments above a nod for her comment. I agree that it’s not all about money, not that I think your post is saying that at all, Tim.

I too am active in multiple organizations and spend hours a week on charity work. In my time I’ve seen some very large checks come in. Unfortunately I then watched the people behind the scenes waste it, sit on it, fumble around with it and/or spend it on things that have no benefit to the organization whatsoever. Not from ill will, but just general lack of know-how.

It’s definitely not about the money. In fact, I think if everyone “helping” were doing their best, knuckling down and really trying to be effective towards known goals, charities would get more done with less money. I donate a small fortune every year, and will continue to do so, but I’ll also keep a close eye to make sure it’s not just churning around in the bureaucracy.

Thanks, Tim, thanks for hitting a tough subject!
Victory Darwin October 5th, 2007
2:56 pm

Tim, giving back NOW is exactly what http://www.WorldVisionEntrepreneurs.org is all about. Rather than the average Joe attempting to be a philanthropist working at his J.O.B. then making charitable donations, we teach how “YOU CAN GET PAID TO SAVE THE WORLD”.

This is a monthly series of webcam interviews I have started (final edits done this Monday!) with:
-people who created greenery to cover the entire sides of city buildings
-a spokesperson from TheElders.org (Richard Branson, Peter Gabriel, Nelson Mandela, GraÃ§a Machel)
-leaders in the development of web social networking tools like Ning and the new Flock social browser
-Herbert Harris author of “12 Universal Laws of Success”

A strong argument can be made for “SAVE YOURSELF FIRST before you try to save the world”, but why not create a business you love, based on a niche you are passionate about, and save the world along the way.

The interview series will be distributed to high schools across North America for free starting in November (and available on Amazon.com, which is how I get paid!). Additionally $7 from each DVD goes to an Entrepreneurship Micro-loan charity.

p.s. I’ll set my goal for the “Most students impacted” award. The recognition by Yahoo will go a long way to further promote this project!

p.p.s. I just sent payment for the PR teleseminar! Really looking forward to finally speaking in person!

~Victory

~is October 31 the contest deadline?
Bloggrrl October 5th, 2007
11:13 pm

Wonderful, wonderful post. It put such a big smile on my face. I’m feeling pretty burnt out on the “10 Ways to Make an Extra Few Cents With Adsense” stuff.

Wealth is relative, anyway. I don’t think we realize that if we are sitting here in front of a computer, we are already rich, especially to those folks in Nepal.

Perhaps you should write a book on fund-raising. I am trying to get some of my colleagues to help pitch in to buy a bike for one of our students who had his stolen (it is his sole transportation to school) and it is like pulling teeth.
Bloggrrl October 5th, 2007
11:16 pm

Wonderful, wonderful post. It put such a big smile on my face. I’m feeling pretty burnt out on the “10 Ways to Make an Extra Few Cents With Adsense” stuff.

As you know, wealth is relative, anyway. If we are sitting here in front of a computer, we are already rich.

Perhaps you should write a book on fund-raising. I am trying to get some of my colleagues to help pitch in to buy a bike for one of our students who had his stolen (it is his sole transportation to school) and it is like pulling teeth.
thom singer October 7th, 2007
8:06 am

I think you need to start giving back early, as it sets up a pattern for you when you do have the “big bucks”. I give a lot of speeches, and I donate a certain percentage off the top line directly to my local Children’s Hospital (to an endowment we set up in my daughter’s name to help fund research for a rare condition she had at birth. She is fine now, but it just seemed like the right cause!). It is not a lot of money…YET, but with every check I get for presenting at a conference or a law firm retreat, I immediately send the money to the charity endowment. As my checks get bigger, so will theirs.
rik longenecker October 7th, 2007
9:38 am

I walked into Borders last night, killing time while waiting for my train, saw your book and read the first 30 pages.

Your account of your martial arts contest win left me thinking that this guy really doesn’t get it.

This troubled me, because it was quite clear that if you did you could really make a difference.

Then, this morning I found your blog with your take on charitable work, and came away with a very different take. You are an enigma wrapped in a riddle.

You have inspired me to write a check to a non-profit that I know to be doing good work, and I know the founder’s integrity to be above reproach, and make a commitment to do that every quarter, and lend a hand when they do work in NYC. Shame on me for taking too long, and thank you for pointing it out.

Best wishes.

Rik Longenecker
Dr.Mani October 7th, 2007
12:27 pm

Awesome post, Tim. You really are changing the world!

I’m delighted to see you support ‘Room to Read’. John Wood is one of my favorite social entrepreneurs, and “Leaving Microsoft to Change the World” is an inspirational read that’s helped guide my own non-profit work.

All success Dr.Mani
» What’s wrong with TODAY? Money.Power.Wisdom: Which Do YOU Want? October 7th, 2007
12:31 pm

[…] What’s wrong with TODAY? October 7th, 2007 Tim Ferriss (of “The 4-Hour Workweek” fame) blogged recently about “The Karmic Capitalist: Should I Wait Until Iâ€™m Rich to Give Back?” […]
Kevin October 7th, 2007
4:31 pm

Tim - Why is this even an discussion (rhetorical question)? I’ve read your book (and obviously your blog) and have been inspired by your thoughts on living life more for the now versus wasting some of your best years putting in 60 weeks. But this post surprises me from knowing you from your writing. Is it better to wait to give back when you are rich? No!

The best answer I could give to this question is think of the people that have given the MOST to those in need. Many of them have been the uber-wealthy or even upper-middle class, but ones I think of are Mother Theresa, Martin Luther King, Ghandi, etc. Those that have given something more valuable than money. Time!

This response is not a call to give up everything and serve those in need, though it is a noble calling. The people that have answered that calling need our money now as do those that have no opportunity currently to achieve any level of financial comfort.

I would encourage you to read “The End of Poverty” by Jeffrey Sachs. With your current fame you could probably even meet him, which I would recommend.

Oh, and by even Western standards you are already rich.
Chad October 7th, 2007
7:39 pm

Preventative Maintenance (prevent vice cure) is such a splendid and often overlooked practice!

It would be like buying your $500 mountain bike and not taking 5 minutes a weeks to oil the moving parts, or an extra two minutes to clean it at the end of the ride. …7 mos. later, your chain disintegrated and the wheels are barely turning!

Or putting your visit to the dentist off for 3 years. (…and then expressing surprise at the results of that crawling black thing embedded in your incisor!)

Early money, quick action, will save truck loads of woes!

-Chad
Being Poor Sucks!
Dan Morelle October 9th, 2007
2:03 am

Tim is right again, there is no reason we cannot be philanthropists right now.

This is why I have spent the summer developing this idea: http://www.schoolchildrensbookawards.org
with the aim to switch kids on to reading - and it works. I was looking for somewhere to send the money I raise, ‘Room to Read’ looks like the perfect organisation…

Hope you enjoyed the rugby!
Graham Lutz, The Young Capitalist October 9th, 2007
7:47 am

In response to Chad, I’d say that some people are called to serve with time and some are called to serve with money. It would be useless if every person that wanted to serve took a vow of poverty. without money, not much can happen. I plan to be the financier of a number of organizations, but right now, I give 10% of what I make and give out of savings when I see a need I can meet.

So, I think it is a balance of giving now and giving later. because if I were to give Everything now, I would not be able to make more to give later…just my two cents.
Catherine Lawson October 9th, 2007
10:26 am

Hi Tim - Fantastic post. I think many of us give now, with the hope of giving more later. But it would be great if we were able to give more time and money to help others now, s later may never come.

I have been thinking about that a lot since reading your book. And some of these mini-retirements could actually be used to go and help others.

Thank you for all the links and info on charities. I also hate when they offer prizes, but I suppose if that’s what it takes to motivate people towards giving it is worth it.
» How Will YOU Change The World? Money.Power.Wisdom: Which Do YOU Want? October 9th, 2007
11:22 am

[…] a goal I set after hearing about it from Tim Ferriss, author of the best-selling “Four Hour […]
Amrit Hallan - HowToPlaza October 10th, 2007
10:57 am

Hi Tim.

I think the commenters have already expressed the thoughts that I have, multiple times, but yes, many people think that they should wait before giving something back to the community. The problem is, most of us think that we can help the world by just donating money. We can do many things to help people without having enough money to give. For instance, in the developed world so many things are consumed needlessly. If there is less consumption, the world becomes a bit better.

Similarly, one can help NGOs have websites, provide them free consultancy and other skills or help them raise awareness. Even if pollute less and grow a tree and make sure it grows up you are giving back to the world.
bruce October 10th, 2007
3:17 pm

Hi Tim,
An additional bonus of starting to give right now is the training effect. If you exercise every day, your body will let you know if you miss an exercise session. We tend to keep on doing the things that we train ourselves to do. If we train ourselves to give, giving becomes part of who we are. It may start with money or time, but it spreads throughout your being. A trained giver is more likely to notice opportunities to give and to take advantage of those opportunities. So giving benefits and changes the beneficiaries of your giving, but it also benefits and changes you:-).
I enjoy your blog, keep up the thought-provoking posts. -b
Online Business Blog October 11th, 2007
9:00 am

[…] Tim Ferriss posted: Should I Wait Until I’m Rich To Give Back? (Very interesting) http://www.fourhourworkweek.com/blog/2007/10/04/karmic-capitalist-should-i-wait-until-im-rich-to-giv... […]
Christine October 11th, 2007
6:12 pm

I’ll take that donation. I’m a teacher and my students need laptops!!!
Just thought I’d try. ;)
Aurelius Tjin October 12th, 2007
9:23 am

Tim, that was wonderful, and very insightful.

Good post!
Have You Got A Big Mouth? October 18th, 2007
6:15 am

[…] And you don’t have to wait until you’ve made heaps of money to make a start. Tim Ferris wrote a great post on things you can do to help improve the world right now and you can read it here. […]
Dane Low October 19th, 2007
5:13 pm

Hey Tim,
I read your post about litliberation in conjunction with reading wikinomics. I thought it would be cool to start a facebook group which had the premise that the members belonging to it each contribute one dollar to the firstgiving donation page. With some of these facebook groups having 500,000 , I thought the goal of 17,000 members far-fetched, yet still obtainable. Any thoughts on getting this charity (or facebook group) past its “tipping point”?

Cheers,
Dane

The group can be viewed through this link: http://uvic.facebook.com/group.php?gid=6307871492&ref=mf
Inspiration from the developing world #1 | Think Hacks October 22nd, 2007
3:45 pm

[…] Room to Read: invest in East Asian village education.Â $2500 will fund one girl through ten years of school (from here). […]
» How I Prostitute Myself (and Other Options for You) October 30th, 2007
5:37 am

[…] and literacy? If you’ve ever thought of giving back, make “someday” today. There is every reason to do it now instead of […]
Grip Your Readers With These 7 Knock-out Opening Sentences November 5th, 2007
9:28 am

[…] ProBlogger readers might come here because they want answers to the following: how can I create a popular blog? How can I generate a full-time income online? Or, an example from another niche: Should I wait until I’m rich to give back? [Source] […]
» Grip Your Readers With These 7 Knock-out Opening Sentences November 6th, 2007
12:19 pm

[…] ProBlogger readers might come here because they want answers to the following: how can I create a popular blog? How can I generate a full-time income online? Or, an example from another niche: Should I wait until I’m rich to give back? [Source] […]
Google Adsense Tips & News » Blog Archive » Bloggers blog, readers donate, students benefit, tomatoes dance November 6th, 2007
12:26 pm

[…] Lit Liberation: Tim Ferriss […]
» Bloggers blog, readers donate, students benefit, tomatoes dance November 7th, 2007
3:55 am

[…] Lit Liberation: Tim Ferriss […]
Shadus November 8th, 2007
6:59 am

The fact is… if you have 100k of free floating cash you can spend in a year… you are rich compared to the vast majority of people. Most people never make 100k a year in their life. I grew up in an area where everyone considered themselves more or a less lower-middle class… they made 25-50k/year sometimes doubled because of both parents working. The families who had parents who made in excess of 75k a year were considered pretty well off. I think there is a pretty massive disconnect between the people in nyc and la and such and the average person in ohio or idaho in regards to what would be considered a “good” income and how much money “wealthy” would entail.
Bloggers blog, readers donate, students benefit, tomatoes dance November 10th, 2007
8:05 am

[…] Lit Liberation: Tim Ferriss […]
J. E. Carpenter November 12th, 2007
3:16 pm

I’ve heard of your book. Have you heard of Bookwise. Just thought that you should have if you hadn’t :<D
Grip Your Readers With These 7 Knock-out Opening Sentences | Hallo World! November 13th, 2007
7:11 am

[…] ProBlogger readers might come here because they want answers to the following: how can I create a popular blog? How can I generate a full-time income online? Or, an example from another niche: Should I wait until I’m rich to give back? [Source] […]
Don’t Do These 7 Things After You Grab A-List Blogger’s Attention — The Internet Infopreneur November 16th, 2007
7:06 am

[…] me going around saying that I know Seth Godin, Guy Kawasaki, Andy Beard, John Reese, Rich Schefren, Tim Ferriss and John Wood - that they are my friends. That would be name dropping. Not the done thing. […]
sean November 18th, 2007
5:16 am

I like your thinking.The biggest threat to children and our future is inaction but there is a big leap from thinking about fixing the world to actually DOING something to fix it. I congratulate you. A few years back a friend was complaining about all the things wrong with the world, ozone layer depletion,war in Iraq, whaling, poverty,deforestation and on and on…I said ‘Stop, STOP…Just choose one to fix…and leave the rest for other people”. We picked preventing children trafficking into brothels and started getting like minded people on board. The other night we ran a fundraiser at a restaurant and raised $3000 to put solar power and books into a school in northern Thailand as part of our prevention programme. We’re still thinking small but that is changing. Next year we will have a full-time investigator in Chiang Mai and be rescuing more kids. So for anyone reading this ‘Just pick one…no-one ever said on their deathbed ‘I wish I spent more time at the office’
Get out there and DO. Keep up the good work Tim.

Sean
The Grey Man Organisation
Joseph Hunkins | Joe Duck November 20th, 2007
7:51 pm

Fantastic post Tim. I got out of the mental trap of thinking you should “wait for wealth to give it away” but then a few years ago when I had a banner income year and did start to give more money I realized that giving to global poverty projects gave me more satisfaction than anything else I was doing, so even with cash flow tighter now I’m still giving, and it still feels great.

As you very correctly note - giving to great causes is so rewarding it is almost a selfish act, and I hope efforts like your schools project bring that great feeling to more people.

FYI - hoping to join you in VietNam visiting the school *we* helped to build with contributions.
Rachel (Bristel) Stephens November 26th, 2007
11:42 am

Hi Tim. Just last Saturday I had a get together with Rune Lind, Orin Kurtz, Zoe(Mott)Rawson, Melissa Daniell and Kelly (Morris) Mattmuller. Oliver Peterson didn’t show. Your name came up and it was suggested that I check out your website. Holy crap, you’ve been busy! My mother also has seen your father recently. She’s a real estate agent (Agnes Bristel) and a dance teacher. She’s quite impressed with your Tango moves. Congratulations on all your accomplishments!
Best Wishes, Rachel
Will The Right Time Ever Come? December 30th, 2007
11:10 pm

[…] If you’re not sure where to start, Tim Ferris has some great ideas in this blogpost: The Karmic Capitalist: Should I Wait Until I’m Rich To Give Back? […]
Bad News: Higher Income = Less Leisure Time? | The Blog of Author Tim Ferriss January 8th, 2008
1:21 pm

[…] The Karmic Capitalist: Should I Wait Until I’m Rich to Give Back? Wealthier Than Thou: Is it enough to be rich, or must others be poor? Chapter 2 – Rules That Change the Rules: Everything Popular is Wrong Mail Your Child to Sri Lanka or Hire Indian Pimps: Extreme Personal Outsourcing […]
Roger Carr January 10th, 2008
12:44 am

Hi Tim,

It is great to read that you consider “giving back” an important part of one’s lifestyle. I also agree we shouldn’t wait. It is amazing what even a small donation can accomplish. Great post.
Elizabeth January 14th, 2008
2:21 am

GivingUSA actually reported that people wth lower incomes give disproportionally MORE than those of higher incomes. Individual giving also closely follows the 80/20 rule with 80 percent of dollars-raised coming from 20 percent of the available funding sources.
As a fundraiser, I’ve been told, and believe, that fundraising is really matchmaking. Find an organization that you want to invest your money in and watch it grow.
Want One EXTRA Hour Every Day? — Money.Power.Wisdom January 26th, 2008
1:43 am

[…] week, I finally bought Tim Ferriss‘ book, “The Four-Hour Workweek” - and read it through in one long […]
Marissa Mack January 27th, 2008
9:13 pm

Oh how I admire your site! I am in the process of starting a site that addresses a spin off of your topic giving back. It is soo important to give when you have it to give. Life is not just about you and what you can do for “you” but what you can do for others. I applaud you for embracing this idea and letting others know the importance of doing so.
Dane Low March 4th, 2008
4:21 am

Hey Tim!

Just an update for this post and some proof that you do NOT have to wait until you are rich to give back. I am a 3rd yr student at UVIC (synonymous with Broke :D ) But since reading your post on LitLib and this one, my firstgiving page (www.firstgiving.com/danelow) has raised nearly $6000 to date!!

Thank you again for continued inspiration!! Dane
Evan March 10th, 2008
12:09 am

Thanks for the great post, Tim. I’ve talked with a bunch of my friends who all say the same thing - that they don’t make enough money to donate and that they will when they do make enough money. I think it’s fair to say that it’s not easy being young and living in expensive places like California and New York because of high living cost; but I also believe that you’re not any likely to do something tomorrow if you don’t do it (at least in part) today. I prefer monthly donations that I just have deducted on my credit card, $10 month for instance gives one mosquito to a family in Africa through Malaria No More. That mosquito net is likely to save a life. Easy decision for me, a drink at the bar or saving a life. As you pointed out there are countless other charities. Microloans are another great way to give for very little. I use Kiva.org
Christian March 21st, 2008
7:14 am

Interesting new study on giving: http://dx.doi.org/10.1126/science.1150952
G April 9th, 2008
11:33 am

Thanks for this post Tim,
I don’t know if you can even read all the comments you get, but just in case you do, I wanted to let you know that you have had a big impact on me. I didn’t know who you were or even that you existed until 3 days ago. But you have managed to decrypt what I have been trying to do blind for most of my life. The clarity of your perception and ability to transmit it is truly a Godsent.

I managed to sneak in my donation at the last minute since the page closes tomorrow (my life has always had this pattern it seems!) so I look forward to the meet up when I can then thank you in person in Nepal.
G.

###

Hi G,

Thanks so much for the kind words and donation! I do read these comments on occasion, to be sure :)

Best of luck to you and yours, Tim
Randy Piper April 11th, 2008
7:23 am

Hello Tim. I believe that the greatest gift of giving is providing the opportunity to empower others to help themselves + others. I’ve added your audio book to my library +I am thoroughly enjoying the self analysis to make changes in my life and to compound and automate my efforts to salvage + recycle millions of dead trees in Colorado into beautiful wood products:from log homes to flooring to trim and siding. You and your readers may be interested in Jed Emersons teachings @ http://www.blendedvalue.org-the convergence of economic, social, and environmental values collectively bringing the greatest value to an organization. I have attempted to practice this principle for years but have not yet achieved the level of success + impact I have always thought that I was capable of, thus the self-analysis of why + what to do about it.I am passionate about bringing awareness of this epidemic and it’s probable impact of devastation on our nation-from unprecedented fires, to carbon impacts, to water and wildlife changes that may likely cost hundreds of millions. Riding the wave of the needed green movement and making money doing the ‘right thing’ in a blended value aspect seems like a smart thing to do but I too am a slave of the 80-100 hour work week, and that must change or I will not achieve my goals. Thank you Tim for sharing your learnings. I will become a student + teacher but it will take learning disciplines + learning to say no a lot more people + situations. Going from an endless list of “to-do’s” and overcoming the ‘guilt’ of not getting everything I ‘should’ do done is going to be a most difficult task.
Sincerely and best wishes to all of you embarking on this common need.
Randy
PS- I would appreciate direction + advice in seeking ‘green’investors as I have received coast to coast media attention for our efforts but need capital to proceed in meeting the demand of the market. Thanks again.
4HWW Readers’ School in Vietnam Opens its Doors — Time for a Trip? | The Blog of Author Tim Ferriss April 23rd, 2008
7:57 pm

[…] live karmic capitalism. digg_url = […]
Andrew April 24th, 2008
12:26 pm

Just a pet peeve of mine…I prefer just calling it ‘giving’ as opposed to ‘giving back’. In America we live in a free enterprise, open market economy where wealth accumulated is the result of a voluntary exchange.

To say ‘giving back’ implies that something was taken or borrowed and you are obligated to one day return it.

I prefer the term ‘giving’ because better emphasizes the fact that you are helping someone not because of an obligation but because you want to.

I know this is picky, but I can’t help myself!!

Love the blog, love the book, LOVE THE DIET!!! 40lbs so far and still going!! -Andrew
Andrew April 24th, 2008
12:29 pm

Just a pet peeve of mine…I prefer just calling it ‘giving’ as opposed to ‘giving back’. In America we live in a free enterprise, open market economy where wealth accumulated is the result of a voluntary exchange.

To say ‘giving back’ implies that something was taken or borrowed and you are obligated to one day return it. It also implies that no social benefit can occur when a profit is being made.

I prefer the term ‘giving’ because better emphasizes the fact that you are helping someone not because of an obligation but because you want to.

I know this is picky, but I can’t help myself!!

Love the blog, love the book, LOVE THE DIET!!! 40lbs so far and still going!! -Andrew