Thanksgiving

Thanksgiving is a great holiday and I enjoy all of the activities we do to celebrate the day, such as eating a big delicious meal, spending time with family, and watching football. All of those things are great, but we should not forget about the day’s namesake of giving thanks. The reality is that we all have a lot to be thankful for. When it comes to personal finances, I’ve seen firsthand that those who have the most gratitude are often the most content, and this can lead to many benefits directly related to our personal finances.

It’s easy to overlook the power of gratitude and generosity. While many think of generosity and gratitude as emotional concepts, research suggests these practices can improve your financial outlook and well-being, and even increase your long-term wealth. Having a mindset of gratitude can reshape how we approach our finances.

Expressing gratitude can improve mental health, reduce stress, and help us be more positive in general. When we focus on what we have rather than what we want, we are less likely to fall into the trap of “lifestyle inflation” – the tendency to continually increase our spending as our income grows. This can also make it easier to develop better spending and savings habits, and inspire us to be more proactive about setting and achieving financial goals.

Being thankful can also make us more generous. Though it might seem like giving, especially of our finances, would have a negative impact financially, it can actually have a boomerang effect on personal wealth. This is in line with what Proverbs 11:25 tells us "The generous will prosper; those who refresh others will themselves be refreshed.” Studies suggest that when we give, whether through charitable donations or helping others, we activate parts of our brain that enhance feelings of happiness and well-being. This can improve our outlook on our finances and lead to better decision-making and financial behavior.

Giving should always be done first and foremost as a way to help others and the causes we care about, that said, it can have other practical benefits. Generosity can make connections with others. I’ve found in my life and career that having connections can provide benefits and opportunities we could never have known about otherwise. Giving can also provide tax benefits, especially if you donate to registered charities. Generosity can also be a valuable teaching opportunity to show children or younger family members the importance of being thankful and generous, which can impact their outlook and values and help them make wiser financial decisions in the future.

As you celebrate this Thanksgiving, don’t forget all of the reasons to be thankful, as its benefits can go beyond simple reflections of gratitude.