How to Find Your Personal Giving Capacity Without Compromising Financial Security

For many people, the desire to give generously is real, but the question is always the same: “How much can I give without putting my own financial security at risk?”

There’s no one right answer, and that’s okay. What matters is finding an approach that feels right for you. Over time, we’ve seen people take all sorts of paths — some prefer to start small, others set clear goals, and a few even place gentle limits on their own spending so they can make a bigger difference.

At the heart of it, generosity works best when it’s thoughtful and in tune with your own financial plans. That way, you can give with confidence, knowing your security is never on the line.

The three types of givers

1. Unplanned givers

Some people give whenever something tugs at their heartstrings — maybe sponsoring a friend’s charity run or responding to a moving appeal. This kind of giving usually adds up to around 1–2% of income and happens here and there, as opportunities pop up. While there’s nothing wrong with giving in the moment, it can sometimes feel a little scattered and not fully connected to your bigger financial picture.

2. Engaged givers

Engaged givers take a more intentional approach, often using the 70/20/10 rule as a starting framework:

●      70% for living expenses

●      20% for saving and building future flexibility

●      10% for giving to causes they care about

They often take time each year — sometimes with their partner or family — to reflect on their giving and ask, “Could we do a little more this year?” For them, giving is a natural part of their bigger financial plan.

A handy tip? Try giving a portion of any pay rise. For example, deciding to donate half of every salary increase lets your generosity grow alongside your income — without changing your current lifestyle.

3. Super givers

Some people reach a point where they decide their lifestyle is “enough.” For them, generosity isn’t about a set percentage — it’s about sharing what’s left over. They might set a lifestyle cap, saying:

“Our family can live comfortably on $120,000 a year. Everything above that, we’re happy to give!”

Others take a similar approach with their assets — working out what’s needed for retirement and supporting the next generation, then directing the rest towards giving.

In Australia, many committed givers choose to use philanthropic trusts to manage their generosity. These trusts provide a tax deduction upfront and create a lasting source of support for the causes they care about. Once the funds are in the trust, they’re no longer available for personal use — a conscious commitment to making a long-term difference.

Balancing generosity & financial security

Life doesn’t always follow the script. Things happen! Rising interest rates, job changes, or unexpected events can put even the most carefully thought‑out financial plans under pressure.

In these moments, even the most committed givers might need to pause or scale back their generosity — and that’s okay. What we often see is that as soon as things stabilise, giving bounces back — because the joy and fulfilment of helping others is hard to let go of.

For some, their commitment runs so deep that they’ll even make sacrifices to keep it going. One couple we know chose to delay their retirement so they could continue giving 20% of their income. For them, staying true to their giving goals meant more than stepping away from work a few years earlier.

Why intentional giving matters

Planned generosity brings a sense of ease. Instead of second‑guessing yourself with questions like “Am I giving enough?” you’ll know that your giving is sustainable and fits comfortably within your financial world. Over time, many people discover that giving isn’t a burden at all — it becomes a genuine source of joy as they see the difference their contributions make.

And generosity often has a beautiful momentum. Once people start, they rarely go backwards. Experiencing the impact first-hand tends to inspire them to keep giving — and often, to give even more.

Getting started

If you’re unsure how much you can safely give, start simple.

●      Pick a percentage. Even 1–2% of your income is a beginning.

●      Review regularly. As your income grows, consider increasing your giving.

●      Align with your goals. Treat giving as part of your financial plan, just like saving for a holiday or a home.

Generosity doesn’t require wealth — only intention. By taking the time to define your personal giving capacity, you’ll be able to contribute meaningfully to the causes you care about while safeguarding your financial future.

Ready to explore your own giving capacity?

Book a chat with our team to create a giving plan that aligns with your financial goals — and makes the impact you want. Whether you're giving for the first time or reviewing your ongoing contributions, we can support you in making your generosity go further.

Talk to Precision Financial about how to give with clarity, confidence, and purpose.