215: An argument for giving away your income

Recently, I had a conversation with Michael Thomas that floored me.

When Michael sold his first company, he donated 25% of the sale to a charity.
Afterwards, Michael started up a content agency where he donates 50% of profits to charity.

And Michael is not insanely rich... the sale of the company wasn't massive.

From what I read about his story online, I would estimate he sold for around $500k-ish.

So that 25% is a lot of money... but the remainder is not "never work again" money.

When I asked him how he thinks through this in his head, his response was amazing. He said:

"There is just so much research on the fact that more money doesn't make you happier. After around $75k per year, it just doesn't help.

While I could go buy nice cars, or expensive houses, I've chosen to keep my life at a modest level, and then donate the rest of the money beyond that.

I gain way more fulfillment from donating money to code school in a developing country than I do buying a Lamborghini."


Do you really need all of that extra money you are making? Will spending it really make you happy?