chilts.org
Andy Chilton
Entries for label: giving
Found 3 entries.
Financial Balance and Doing What Makes You Happy
Many articles I have read over the years talk about Financial Balance. Many give you various percentages which you could (should?) follow and others break it down even further. For example, one thought is to break your net income into the following areas:
- up to 50% on NEEDS
- up to 30% on WANTS
- the rest (20%) on SAVINGS
Breaking these down further can lead to more complex solutions and that is something you should decide, but before even trying to break it down, consider why you should do this.
Being Happy
Most of this blog, as well as others I read, is about being happy. It’s not just about personal finance, saving money or being thrifty, it’s about doing what makes you happy. When you realise that having the freedom to do what you want because of financial independence that is a powerful thing. And whilst you might not be in that situation now, but heading towards it over the next few year, means that whatever you do, will make you happy.
Making homemade jam, wooden toys from the ends of spare planks in the garage, pizza dough freshly made in the kitchen, a crayon pocket for the kids and a sock puppet from old worn out socks are all very enjoyable and also cheap and easy to make. The thought that a homemade toy says rather than a plastic thing from the shop is very satisfying.
So where does all this fit in with the percentages above. Well, making all these things at home is way cheaper than buying them from the shop, so firstly they help with actually saving money. That goes towards your 20% savings.
Secondly, doing all of these activities is fun! Either by yourself, with the kids or for other people, they all give lasting satisfaction which means you feel good. It also helps fill in your time instead of watching TV, doing retail therapy or just generally being lazy.
Finally, you can fill your time with wants which are fun and cheap, rather than wanting expensive DVDs, chocolate or expensive hobbies. Of course, there is nothing wrong with all of these things if they are in balance with the rest of your life and your way of life. Better to be happy and healthy, than rich or broke. Finding that balance can help keep you on track to financial independence as well as on track to enjoying your life.
Labels: budgeting, giving, working
Inserted: 2009-12-30 03:06 (7 months ago)
December Challenge - Free Yourself of Material Possessions
.Earlier, I posted about 5 Ways to De-Clutter and Simplify Your Life but in December, we're going to take this to the next level.
Being surrounded by material possessions weighs heavily on our minds. Sometimes I wonder how big the next place I move to should be just to fit all these things in. I wonder why I keep those DVDs on my shelf that I haven't watched in ages. My wardrobe, whilst not big could do with a trim. And all those other empty appliance boxes, folders of papers and books I haven't touched in a while just sit there staring at me.
And all the time, I think about doing something about these things.
Starting Out ...
Over time, people generally acquire lots of stuff. Each time they move, they shift it with them and since the new place is bigger, it's easier to acquire even more stuff and have it diffuse into the house like all the other belongings.
A spring clean every now and again removes parts of it, either to the charity shop or the rubbish dump but mostly, it just gets dusted and put back. Those things that haven't been used in a year or so but still being kept for the sake of it.
I've managed to do this with a few things since I downsized to my newer smaller flat but I still have lots of stuff, everywhere, all over the place. It'd be nice if this wasn't the case and I could actually get rid of a lot of it.
... and Finishing Off
This December, I challenge you to start filtering through all those secret cupboards you have left closed for eternity, those drawers that seem completely jammed and those cardboard boxes in the attic or garage that haven't seen the daylight since the turn of the Millennium. Just a little bit here and there will make a huge difference. How much? 15-30 minutes a day. That's not much but, as with Personal Finance, many small changes add up to a large difference over the long term.
Not only that, but once you've filtered your possessions you'll find it hard going back and acquiring more stuff. This not only helps your peace of mind but also your wallet.
The Act of Filtering
A friend told me the other day that she has three piles: Keep, Charity and Throw Out. This sounds like a good plan since then you know exactly what you're doing with every single item you find.
You might like to add a Sell pile too but this is your choice. Maybe you have a Give to Nephew pile or a Recycle pile and of course, you may have others but the best way to do it is to keep it simple. Also, as and when you look at each item from that cupboard, drawer or box, make a decision there and then as to what you're going to do with it. The worst thing you can do is decide to decide later.
Say 'No' to a Don't Know Pile
Whatever you do, do not have a pile called Don't Know since that will just assimilate back into that stuff you didn't actually know you owned. After all, the point of this exercise if to get rid of things, not just shift them to another location in the house.
As I said, pick up each item and put it into one of the definitive piles. That way, when you look at it in the future, you know exactly what you're going to do with it (assuming you haven't already done something with it already).
Do a Little Every Day
By doing just a little bit every single day, you'll be amazed at how quickly you can get through your stuff. I shall be taking this challenge and posting one or two updates throughout the month so we can compare notes on how we're doing.
You might wonder if December is a good time for doing this since it is a very busy time of year but I suspect that this will work out well for even the busiest house host. Instead of leaving all of your tidying up until a week before Christmas and New Year then just start now and see where you are in two weeks. I suspect if you did a bit every day until mid-December you'd be more ship-shape than if you left it until later.
So what are you waiting for? Get sorting through that stuff and let's have a clear, clean, stress-free and simple Christmas and New Year.
And remember to let me know how you're getting on in the comments, state that you're partaking in the challenge and blog about it so we can spread the word.
Labels: recycling, planning, living, giving, selling
Inserted: 2008-11-30 10:06 (1 year, 8 months ago)
The Gift of Giving
Over the years, I have somehow reached the stage that no matter who gave me what, for Christmas or Birthday, I either already had it, didn't need it or didn't want it. In the past 3 years or so it has become ridiculous in that people are still buying things, sending them over large distances, and almost immediately after opening they are unwanted.
Yes, this sounds like I'm ungrateful of these gifts but it's not true. What I would prefer is that someone who actually needs something should get something. I have told my family and friends that, instead of buying me anything (anything at all) that they should give something to charity. This could be food gifts, old clothes, spare time volunteering and of course, cash will work too. All I ask is that I am told which charity they gave to - I don't care about the amount - just my curiosity at work wondering who people enjoy giving to.
I also be happy if they just kept the money for themselves too. That's a personal choice. What I'm saying is, I'm doing okay, don't worry about me.
Lately, I have also been giving charity gifts to family (with one exception). The past couple of Christmases, I have bought a number of gifts from World Vision and sent the family the card saying so. It's a charity that I like and I feel the cause is good. There have been chickens, school uniform, school desks, garden equipment and other things given to families on my behalf to those that need it. I'm not sure my family approved but they shall be getting a similar gift card this year too.
I mentioned an exception and that is for children in my close family group. Birthdays and Christmas is for children so I shall probably get them something until they are 18.
I also sponsor a child in Malawi and each month a certain amount of money is taken from my account. Again, I'm sure a number of you would wonder if that is the right thing to do, especially since I have plans to Retire at 40. Well, that's just something I see as an actual expense and it is (and has been) a part of the budget that I just can't see myself stopping it. Granted, it does add up over the space of a year, but remember, charity donations are tax deductible (in New Zealand) and at the end of the year you can claim back the tax you'd have originally paid on the donations. In fact, I got a healthy figure back from the government just last week.
In conclusion, I prefer not receiving anything to receiving something that is unwanted. I also prefer giving charitable donations as gifts to those that are not in need themselves. I make an exception for kids.
And yes, all my gifts are now accounted for in GnuCash so I know exactly how much I've given to family, friends or charities over the space of a year.
What do you do? What do you like giving, what would you like to receive? Any exceptions?
(This post was inspired by Frugal Dad's talk of Why Cash Offers More Flexibilty Than Gift Cards.)
Inserted: 2008-10-01 21:19 (1 year, 10 months ago)