At the end of the day, humans are generally selfish and our existence, for better or worse, is often an effort in “preservation of self.” That means what’s best for you, what’s best for your family, and it extends further into what’s best for your community.
However, before one can focus on helping their community, they must first make sure their own needs and their family’s needs are met. This is what is reflected in the work of Herbert Spencer the British philosopher and sociologist who wrote Principles of Psychology where he posits natural laws govern the human mind.
Just as there are natural laws that govern the human mind, there also are Natural Laws of Household Economics which suggest certain financial and economic behaviors will prevail. As it relates to investments and household finance, it means it’s not selfish to care for you first; rather it’s responsible and prudent. For example, it’s a common goal for people to want sufficient assets and liquidity to handle an economic emergency. But obviously beyond that, many other economic goals exist, ranging from sending a child to college to building a sustainable retirement portfolio.
Securing those needs and desires is often accomplished by investors choosing investment alternatives that complement the 0.6 percent they earn in their bank accounts. Using tools like stocks, bonds and real estate will help advance your own finances and may help set you free to focus on those around you. And, if you’re retired, you may have extra time. Extra time and money can be a powerful combination to amplify your commitment to your community.
There are many ways one can give back to their community. You can make tax-deductible contributions and elevate the finances of organizations and 501(c)(3)’s that interest you, sponsor Little League, run for City Council or help with beach cleanup. Once you’ve laid the groundwork and achieved your economic goals, money might not be as significant of a focus as it once was, so that extra time or resources are available to volunteer and give back.
Ours is a special community, one that people from all over the world come and visit. In order for it to continue to be so attractive, keep building and goal setting, and let’s be reminded that while preservation of self is still a natural law, giving back to the community is rewarding too.
Jeff Runyan is the lead of Runyan Capital Advisors financial advisory team based in Beverly Hills, providing clients nationwide with wealth management and retirement planning advice. Backed by over two decades of industry experience, Jeff leads an investment team committed to designing investment portfolios that adhere to the premise, “Discipline Makes the Difference.” Learn more at RunyanCapital.com.
Securities offered through Wedbush Securities Inc. Member NYSE/FINRA/SIPC.