Why I Budget for Donations (Even When Money Was Tight)

When money is stretched, the idea of adding a donation line to your budget might sound impossible. I know, because I’ve been there.

When I first started budgeting, every dollar had a job — rent, food, debt. Supporting charities felt like a “someday” thing. But I set myself a small goal: I wanted to be able to help the organisations that mattered most to me, especially those supporting women, children, and animals.

So I began with just $5 each payday. Tiny, really. But that small step grew into a habit — and now I am able to regularly support multiple charities in a way that feels meaningful and sustainable.

Here’s why adding a donation line to your budget can be powerful:

💜 It boosts happiness.
Research shows that giving money to others increases happiness, no matter how much you earn or how much you give. In fact, people often report more joy from spending on others than on themselves. Giving creates a positive cycle: generosity makes you happier, and happier people are more likely to give.

💜 It builds better money habits.
Budgeting for donations requires planning and consistency. It helps you be more intentional with your money overall — which strengthens your financial discipline and resilience.

💜 It strengthens community.
Generosity fosters social bonds, trust, and cooperation. In New Zealand, studies link frequent giving with higher self-reported well-being and stronger connections to others. When you give, you’re not just helping an organisation — you’re also building community.

💜 It’s good for your health.
Charitable giving has been linked to lower stress, reduced depressive symptoms, and even better long-term health outcomes. Turns out, generosity is good for the heart in more ways than one.

💜 It can be smart financial planning.
In New Zealand, eligible donations can earn you a tax credit — meaning part of your gift comes back to you. Win-win.

How to start:

• Begin small — even $2 a pay can create a habit.

• Automate your donations so they’re consistent.

• Review your giving as your financial situation changes.

Adding a donation line to your budget isn’t about the size of your gift. It’s about creating meaning, building resilience, and proving to yourself that money can be used not just for survival, but for impact.

✨ Start where you are. Give what you can. Future you will be proud.