How to be generous on a budget, Part 1: Charity

Despite signs that our economy is picking up, times are still tough. Grocery prices keep going up, and the cost of gas is frightening. So, how do you strike a balance between being wise with your money and being generous?

The good news is that it can be pretty easy to give back without having to spend a lot.

1.      Pick up extra. If there’s a good deal on something that you use—say, toothpaste or cans of tuna—(or even something you don’t) such that you can get it for free or with little cost, think about picking up that item to donate.  Food pantries will take non-perishables.  Many soup kitchens will take produce. Women’s shelters are thrilled to receive shampoo, soap, toothpaste, feminine hygiene items, deodorant, shaving cream and the like. And don’t forget out furry friends! A can of dog or cat food can be less than $1 and will allow someone receiving their own meals from Meals on Wheels to feed their pet.

2.      Instead of throwing it out, donate it. Did you know that most animal shelters will gladly take old blankets, towels and pillows? Often they can use old stuffed animals and even empty pill bottles (they use them to send home meds with adopted pets). In Rochester we have a “craft thrift store” which accepts and then resells craft items and unfinished craft projects. Many school teachers are grateful to get craft supplies for their classrooms. Old magazines might be welcome at local medical or dental offices; I take mine to the waiting area at my mechanic’s.

3.      Donate your time.  Charitable organizations need physical help as much as they need monetary and in-kind donations. Habitat for Humanity would not be able to build houses if people did not volunteer their time to lay the foundations and build the walls of those homes. The local poor would not get fed at the soup kitchen if volunteers did not help prepare the food. Yes, it is a sacrifice. But it won’t cost you a cent.

4.      Better yet, donate a skill. If you have a professional skill, a few hours of your time donated to a worthy cause can be invaluable. If you’re a seamstress, you could sew costumes for the local high school’s theater department. Or make pillowcases dresses for little girls in Africa. If you’re an artist, you might make a great docent at the local art museum. Do you know how to repair bicycles? There are organizations that help fix up old bikes for kids whose families can’t afford their own. I knit blankets for the animal shelter using leftover yarn and yarn I wouldn’t use for other projects. Project Linus provides homemade blankets to children who are terminally ill or traumatized. If you can read, then you have a skill that is in demand by Literacy Volunteers.

5.      Does your company match gifts? My employer has policy of matching certain gifts, and also offers a “dollars for doers” program where they will match volunteer hours by employees with a monetary gift to the charity. They also provide two paid volunteer days to full-time employees. Find out if your employer offers any similar programs and be sure to take advantage of them.

If you’re not sure where to begin, try VolunteerMatch.org to find a charity that supports what is important to you. If you aren’t sure what charity might be able to use whatever items you have to give, a few Google searches, or looking at local charity “wish lists” might be helpful.

Next up: How to be generous on a budget, Part 2: Gift giving

Baby-stepping toward retirement

Although I sometimes forgot my exact age (37), I do know that I am officially in my "late 30s." That means I only have about 30 more years of work to put in before I can retire. That seems like a lot of years, 30. And so many things will and could happen. Some of these variables I'm prepared for, others I am not.


But one thing I am sure of--I am NOT financially prepared for the end of my occupational journey. I remember two of my friends talking during law school about their retirement plans. At the time, the only money I had "saved" was split between what was in my pocket and what (little) happened to be lingering in my checking account. I quickly left the room to avoid all out panic during their discussion.


I'd like to think that the 6.2% of my paycheck that the government has taken all these years will be earning gobs of interest over my working life, compounding as it waits to join me in my golden years. Instead, that money is sent to various "genarians" about 10 minutes after it arrives at the Social Security Adiminstration. And while my funds do earn interest, it's at rate less than 2%. [For 2011, the social security tax is 4.2% for most of us.] It seems unlikely that Uncle Sam will be supporting me in my later years.


So, it's up to me to plan. I am fortunate that my company has a 401(k) plan. I am even more fortunate that they will match my contributions of up to 6% at a 50% rate. (For example, if I put in 4%, they'll match it with 2%.) I started my current job at the age of 31, which experts say is late to start saving for retirement. For the first year or so, I couldn't afford to put money in my 401(k). Financial experts, accountants and dads across the country, however, will be appalled if they learn that you are not maxing out what your company will match. "It's free money!" they will say. But when it's a choice between paying the electric bill today so that you have light next week and socking away dollars in your retirement account so that you can have light 30 years from now, well, next week wins by a landslide.


I do wish I had been more financially savvy and responsible in my 20s. (Who doesn't regret some of the decisions they made in their 20s?? I also wish I'd eaten less junk food and drank less rum.) But now I'm a grown-up, home-owning, leafy greens-eating 37 years old. And I need to buckle down and save for the future. So, today I decided that I'll be upping my 401(k) contributions. Eventually, I should probably learn about IRAs and mutual funds. But right now, I'm happy with my baby steps.

A "bonus" rule

Today was a  pretty good day at the office. Our new, improved cafeteria opened and I got a free travel mug and a piece of cake. We also learned how much our bonus would be and how much our salary increase would be. It tends to lift my mood when people tell me they are giving me money.


I have certain rules about some money-related things. For example, the "gift card rule." If you give me a gift card or certificate as a present, I feel it is my duty to make sure that it is spent on something I wouldn't have purchased otherwise. Similarly, money given to me as a gift does not go into the bank. Because once it gets deposited, it's "on the books" and has to be dutifully accounted for. Once money's in savings, I don't want to take it out. And once it's in checking, it just gets melded into the monthly budget, with any leftovers rolling into savings anyhow.


Tax returns go into savings. When we have three-paycheck months twice each year, that money is earmarked for projects around the house. But I have no rules for the bonus.


So I'm trying to decide what the sensible, responsible save-to-spend ratio is for such un-budgeted-for things. A large part of me is voting to spend it all on next month's IKEA trip, while a smaller part suggests splurging on a mani-pedi and banking the rest. Then again, I do believe the car might need some repairs...


The benefit of being single is getting to make all the decisions yourself. The drawback is having no one else to blame when you don't like the outcome.