If you have a question you’d like to submit, leave it in the comments section below or email it to freelancefinances@gmail.com and I will do my best to answer as many questions as I can each Saturday.
I was wondering if you use a commercial software package such as Quicken to track your finances or do you use some other method?
I used to use Quicken. And I credit purchasing Quicken as one of the best financial decisions I ever made. Quicken helped me to see exactly where every dollar I had, or owed, was. It tracked my checking, saving, retirement, credit cards, car loans, school loans and everything else, when I had it all.
I think it’s a great piece of software that forces you to be actively involved with your budget and your money.
That said, now that I’m debt free (except for my student loan, which is on automatic payment), I just use a simple Excel spreadsheet. Quicken is very good at what it does, but once you don’t need to track a ton of different debts and loans and payments, it becomes overkill.
I would recommend that if you’re in any kind of debt, you buy Quicken and get involved daily with your money. But I can also tell you that once you’re out of debt, you will most likely find you have no need for all of Quicken’s bells and whistles and you will move to a single Excel spreadsheet monthly budget, like I did.
I am 22, I have just graduated from university and have a reasonably well-paying job. I also have no debts and some savings, so I am not too worried about that (for now at least). Anyway, I am not trying to make myself out to be some kind of huge philanthropist here by any means but I do struggle with the ‘right’ way to donate money from time to time.
For example, a month or two ago when there were those awful natural disasters in Indonesia, I felt compelled to donate to the relief appeal — but how to choose how much money to give? Could I really not afford to give ten or twenty pounds more? Of course I could, but where to draw the line? Is it more worthwhile perhaps to set up some regular donations rather than these sporadic ones?
Donating and/or tithing are going to be personal decisions, different for each reader. But seeing as how you asked for my opinion, I will certainly share it.
I find I feel better giving to just one or two causes, rather than spreading my giving out to numerous places. Focusing on one or two causes that inspire me, or move me, allows me to give more to that cause, and feel like it’ll actually do some good.
There are really only three causes I give money to semi-regularly. Kiva.org, I donate a percentage of all of the royalties from my first album to Kiva. Money given to Kiva goes directly to entrepreneurs looking for small business loans. As a small business owner myself, who relies on sales and support from a small community, I can appreciate how hard it is to get started, and enjoy helping. Save the Music, because I can’t imagine a future in which music is not taught in school. And Uncultured Project, because Shawn is a good kid, donating so much of his time and energy to running Uncultured, the least I can do is send some money when he needs it.
These are the things that stir me. What stirs you? None of us can save the whole world. But each of us can make a small part of the world a little bit better.
I would not suggest setting up your donations as a regular monthly contribution, because then it will feel like a bill. I would suggest giving when you can, and figure out an appropriate dollar amount for your budget that month. 5%, 10%, more during certain months? Of course we could all probably give 10 or 20 dollars more when we donate, but don’t think about what you’re not giving, think about how much you are giving, and how far that will go to helping or curing or supporting what matters to you.
{ 4 comments… read them below or add one }
Hey thanks for the mention in this post Alan
When it comes to international relief, one of the things I have to recommend is going at a pace that you think you can sustain for years to come. Many people, especially if they are compelled by guilt, will donate more than they can handle. They burn out and then tune out.
And, whether it’s international relief or cancer research or supporting music programs in public schools, there are ways to help other than donating. Many charities, like Save the Children and Oxfam for example, supplement their requests for money with requests that we make sure our politicians have the same priorities as us. Writing a letter to your political leaders – and turning the pressure on – can sometimes do more good than cutting a check.
Kiva.org- Will keep that in mind.
Kiva is good stuff. While I was living with my parents and had no expenses, I donated to Kiva and Shawn and some other ones, but now I’m a starving artist or something. But I recently got money back from Kiva and donated it to another person. I like them.
Thanks, Alan. I really enjoy reading this blog.
I regularly donate an amount to my religious affiliation, but I also have other sporadic donations. Many people now ask for donations to charities in lieu of flowers for funerals and several people I know ask for donations to run or walk in charity-a-thons. I also donate clothes, household items or books to the local thrift stores that are run by charity organizations.
The main thing is keeping track of all these donations. Receipts, statements and checks all go into a folder for my charity/tithe information for that year. When taxes roll around, I’m ready to put in all the information as tax deductions. I know this might be more paperwork than some people want to do, but it works for me.
One new thing I have done this year is to follow on Twitter and on Facebook a charity I want to share with others. It doesn’t cost me anything and it sends information to people I know who may not know the organization exists. It’s The Bob Woodruff Foundation called ReMIND.org. Their slogan is “Helping to heal the physical and psychological wounds of war”.
Hope this isn’t too long.