How to balance giving with financial goals.

The realities of giving (or not giving) in your 40s.

Juggling high living costs & responsibilities.

Many individuals in their 40s find themselves in a “financial crunch” phase of life. They may have a large home loan or purchased an investment property while juggling household expenses and raising children. In many cases, one partner is working part-time, further tightening cash flow. For those living in cities like Sydney or Melbourne, large mortgages and high living costs are common. Add private school fees — around $40,000 per child — and it’s no surprise that income and expenses tend to balance out, leaving little room for discretionary spending. 

Rising interest rates & financial strains.

Interest rate repayments, now exceeding 6% on average, add to the strain, especially for those with negatively geared investment properties. While these may offer tax benefits, they can still eat into monthly budgets, making giving a lower priority. Consumerism adds another layer of complexity — we’re constantly bombarded by advertising promoting the next thing to buy!

Interestingly, tax returns often reveal that as incomes increase, the percentage of income given to charity, generally decreases. This could be due to skepticism about charities, a focus on personal wealth accumulation, or simply a lack of consideration for giving. However, there is a smaller group who give regularly and grow their donations alongside their income. 

By contrast, there are a few people who have been able to prioritise generosity in this life stage.

In the midst of the financial crunch, giving to charity is simply not top of mind. Overwhelmed by daily responsibilities, family matters, financial pressures, and too many charity options, people are often closed off to the idea altogether. However, those who make it a priority find it deeply rewarding.

We have a client in his 60s who regularly donates a portion of his income to a charity called Open Doors. This organisation supports persecuted Christians around the world by providing legal aid, safe havens, and funding. For him, giving has been a source of immense satisfaction, knowing he is contributing to meaningful change. Similarly, we have other clients who focus on one or two causes that align with their values, such as child sponsorship through World Vision. These efforts often create ripple effects, benefiting entire communities.

So, how do they do it?

How to embrace giving during the cash flow crunch.

Even during tough financial times, allocating a portion of your budget is possible. Simply rethinking financial priorities can open the door to giving without waiting for "better times”. The key lies in understanding that giving doesn’t require large sums — it’s about creating space in your budget (and we can always help you find space).

1. Spend less than you earn. Cut down on discretionary spending and choose affordable alternatives to free up funds for causes that resonate with your values. Re-evaluating your budget (use our free budget spreadsheet) can uncover opportunities to include giving, no matter how small.

2. Consider trade-offs. Much like other expenses, giving can be prioritised over less essential items. Many families willingly make trade-offs (driving an older car or eating out less) to prioritise family vacations or a good education. The same can be done for giving — you may like to cancel an on-demand streaming service and allocate those monthly funds to a charity instead.

3. Set aside a portion. Many people who live by the portion rule allocate 10% of their income to giving. By deliberately allocating income in this way (even as your pay increases), you create a balanced, sustainable approach to financial wellbeing and generosity.

4. Give regularly & make giving habitual. Set up automatic direct debits to your chosen charity or cause, ensuring it becomes a seamless part of your monthly budget. Treat it like any other essential expense, so it’s consistent and prioritised without requiring constant decision-making. 

5. Start young. Foster a culture of giving within your family by normalising generosity within the family unit. Include your children in charity matters by encouraging them to give some of their own money or research a cause they’re interested in. 

Case Study

The best of both worlds.

Ten years ago, we worked with a couple in their 30s (they’re still clients today!) who held giving as a deeply ingrained value, even when it impacted their financial goals. Early in their working lives, these clients adopted the principle of allocating 10% of their income to giving.

For this couple, giving was a priority, even when they didn’t have surplus funds. This commitment meant delaying the purchase of their first home (by three years), as 10% of their income was consistently directed toward charitable causes. When they eventually bought a home, their options were limited as a result of their giving — something they were aware of and comfortable with. They had to choose a property within a lower budget and manage repayments carefully.

Despite the financial trade-offs, this couple found fulfillment in maintaining their giving habits. Their story highlights how prioritising generosity — even at a personal cost — can positively impact a sense of joy and achievement. 

Generosity doesn’t have to wait.

Navigating financial pressures can make giving feel like a low priority. However, this doesn’t mean generosity has to wait. 

A little help in this area goes a long way — Precision Financial is ready to help you rethink budgets, prioritise what matters, and adopt habits like small, consistent giving. If you are interested in exploring giving and the fulfilment and impact it can bring, contact us.