Category Archives: Money Tips

Quick Tips about Donations to Charity

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Don’t Waste Your Money Paying Fundraising Companies for Gimmicks for Charity

Some years we get a gaggle of gimmicks in the mail from fundraising companies trying to get us to donate to charities. The most useful were the return address stickers. The least useful were the carrot seeds, although our guinea pigs liked the resulting sprouts. We’ve received note cards, fridge magnets, and posters too.

The idea is a simple one: the person who receives these “gifts” is supposed to feel guilty and send in a donation.

It’s very irritating.

It’s also a waste of money. I don’t want 50 cents of every 1 dollar I give to a cause going to a fundraising company. I also don’t particularly want to fill up my blue bin and garbage can with someone else’s idea of what I want.

Personally, I never send a contribution in response to these campaigns. (They can tell if you use the enclosed donation form and/or envelope that you were somehow motivated by their mailing.) I do sometimes donate to those charities, but I do it in other ways.

Perhaps if enough of us refused to give in to this emotional blackmail they’d move on to another technique, hopefully one that’s less expensive and less wasteful.

Watch Out for Scam Charities

We’ve probably all been accosted at the entrance to the grocery store by some rather awkward teenager asking us to buy a chocolate bar for charity. Before shelling out money for something you likely don’t want anyway, be sure to check a bit further as to what the charity is.

You likely know the schools closest to your store. If it’s one of them, it’s probably for real. But recently (or perhaps they have only been getting caught recently) there have been cases of criminal fraud. Teens have been hired to sell chocolate bars for a charity that doesn’t exist. You can read about what example of this in the Mississauga News.

So be a bit cautious.

You Can Give the Money and Refuse the Refuse

If I actually took delivery of a poinsettia from every person I know who is trying to sell them for their fundraiser I would be able to stock my own greenhouse. Similarly, anyone who looks like I do does NOT need to buy and eat any more chocolate bars, pre-buttered popcorn, chocolate almonds, or other snacks.

Most of these flowers and treats are being sold by my friends’ kids. Others are for reasonably worthy causes like a local youth outreach program. I don’t mind donating to these causes (even though there is no tax receipt involved) but I don’t want their stuff.

Guess what? You can give them the money and NOT take the item. It always startles people, but then they realize it’s a win-win. They can give my money straight to the group without ordering anything. In that case the group gets more money because they don’t have to spend part of it paying for something to give me. Or they can (and I suspect some of the ravenous boy band members do this!) take my donation and eat the treat themselves. Either way, their cause gets supported, and I don’t expand either florally or figure-atively.

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Do you have some other tips for managing donations to charity? Please share your tips and tricks with a quick comment. (or a slow one!)

Budgeting for Retirement: The Long Term Costs of Maintaining a House Must Be Included

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It’s easy to remember to budget for water, electricity, natural gas and/or heating fuel, telephones, house insurance, property taxes, internet access and cable TV when planning for retirement. It’s also a good idea to include some factor for inflation in those costs. However what many of us forget to budget for is the costs of keeping and maintaining a home.

Yes, if you’re renting you may be able to skip this article. It could give you a good idea of what to expect should you choose to buy a home in the future, though.

Planning for Long Term House Maintenance, Repairs and Replacements

People vaguely know that many things in their homes will need to be replaced over the long term. But many people don’t save the money in advance that they will need to pay for these repairs and replacements.

While they are working, they tend to rely on hope and maybe a bonus at work to pay the bills. Some, even worse, rely on their line of credit or credit card to bail them out. If they can’t pay that back at the end of the month, though, ouch.

In retirement, however, you are very unlikely to get any bonus or any raise. When these replacements and repairs roll around you need to have the money ready and waiting. But how much is realistic?

Estimated Costs and Required Annual Savings to Pay for Long Term House Repairs, Replacements and Maintenance

Everyone’s home is different. Mine, for example, houses a raging herd of dust rhinos. The following costs, therefore, are just an example to get you thinking. You may be able to come up with a more realistic set of numbers for your home from past bills, ads or based on chats with neighbours.

Amount to Save Per Year Number of Years to Save Total Cost of Item Item
$200 15 $3000 new furnace, installed
$133 15 $2000 new air conditioner (You may feel the heat more when you’re old.)
$100 10 $1000 new refrigerator, with taxes and delivery
$67 15 $1000 new dishwasher, installed
$50 20 $1000 new stove with oven
$50 15 $750 new washing machine
$37 20 $750 new clothes dryer
$100 10 $1000 new snowblower (Remember, you’re going to be old!)
$10 20 $200 new lawnmower
$214 35 $7500 new tub/shower bathroom (They do start to leak.)
$467 15 $7000 new roof for house (Yes, it might last longer. Yes, we have a lot of roof.)

This adds up to $1428 / year.

Did you notice I didn’t include the cost to replace a Central Vacuum system? I told you I had dust rhinos, remember? If you are averse to them, you may want to add more to your personal savings
plan.

Your Personal Home “Reserve Fund” Needs Funding

That means every year, even the years where you’re paying for an expensive item like a new furnace, you need to save $1428 from your pension and other retirement income. Those savings are your personal “reserve fund” just like one a condo might have. You’ll need this money saved, ready and waiting to pay the bills when needed.

Other Items to Repair or Replace to Maintain a Home

The above list does not include replacing any of the following. Most of these items, though, will also wear out in 10-35 years.

  • storm doors
  • windows (the seals go and they permanently fog up)
  • foundations (they can start to leak unexpectedly)
  • bricks (can need re-pointing)
  • chimney repair or replacement (including liners)
  • aluminum and vinyl siding
  • toilets
  • bathroom or kitchen exhaust fans
  • electrical upgrading (the knob and tube wiring crowd thought they were state of the art, too!)
  • carpets
  • vinyl flooring
  • drapes and blinds
  • couches, chairs and other upholstered furniture
  • linens
  • fireplaces
  • garage door openers or doors
  • fences (If your neighbor wants to put one up, you have to pay half in most municipalities.)
  • small appliances (These include microwaves, blenders, toasters, kettles, coffee makers, hair dryers, humidifiers, dehumidifiers etc.)
  • doorbells (Have you priced buzzers recently? You’d be surprised what 10 cents worth of plastic costs.)

Okay, you get the idea.

Now you can see why many people on “fixed incomes” are so vocal about rising costs.  They can sit on their couch with the spring digging into them, while not needing a TV because they can’t afford cable or eyeglasses, but if they don’t fix the roof they’d better hold a bucket on their lap.

My Advice
Save. Lots.

Further Information

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Did the cost of an unexpected repair or replacement challenge you recently? Have you started a savings system to be ready when the roof goes? Please share your experiences with a comment.