Archive for February, 2008:
One week until the rummage sale
My community garage sale is next weekend!
I need to blog about this because I need the accountability for actually getting things ready to go and showing up at 6 a.m.
I’ve been going crazy this winter because we have too much stuff in our apartment and I just can’t wait to get rid of some stuff!
Earlier, I said that I would try to sell some things on eBay first, and then take the leftovers to the sale, and then the leftovers from that to Goodwill.
I’m going to revise that somewhat.
I don’t want to mess with seller’s fees on cheap-o items.
So, I think I’ll take it all to the rummage sale first, and for higher-end small things (that I hope to fetch $20+ or so), I’ll sell those on eBay afterwards. And, I’ll still take a bunch of things to donate.
For some people, it works out better financially to donate items and write them off as a tax deduction. We won’t be itemizing our taxes for 2008, since for now, the standard deduction is better for us. So, I’m hoping to make a few bucks at the sale.
Question for seasoned rummage sellers: How much change should I have on hand and in what denomination? Do you have any other tips for me?
Let’s get our savings rate back in the black
Check out this op-ed in today’s New York Times.
I want to highlight this passage:
The recent slowdown in gross domestic product growth is only a symptom of recession, not the cause. While there are many things to blame for the current crisis — most notably the subprime mortgage mess — one factor that has received little attention is America’s low savings rate. In 2005, net private savings in the United States were negative. In other words, we were spending money that we didn’t have, chipping away at our national wealth.
Essentially, if Americans had a reasonable emergency fund, this economic downturn would have been less severe–if not avoided altogether.
The author points out that, "The last time the savings rate dipped into the red was during the Great Depression.
Great.
It’s important to remember that we simply cannot continue spending money we don’t have. If we don’t have the money to pay for something, why on earth are we buying it? We need to have several months of an emergency fund put away for these rainy (or snowy) days.
If you’re building up that emergency fund, please keep motivated to stock it all the way. Remember how it feels to be pinched during times of recession.
Better to give than receive? An illustration from popular media
Kacie and I are fortunate to start our new life together with frugality in mind. Already, we have paid our college credit card debt and have the beginnings of an emergency fund in place.
Now she asks: to whom should we give a donation each month?
“We need to save for ourselves!” … my subconscious mind pleads after hearing this question. For better or worse, my twin brother and I were always showered with gifts growing up, even when my family’s situation was not financially strong.
There was never the expectation that I should reciprocate and give gifts to others, and this mindset has remained for me. Surprisingly, gift-giving or receiving has not become my love language, nor is it Kacie’s. Kacie and I did not buy Valentine’s Day gifts—instead, we had a nice dinner at home. For us, we are much happier that way.
An interesting exception is that I’ve found enjoyment by giving to strangers—especially to individuals in need.
Still, I am hesitant to donate. The question is not “how much”, but “where?” to donate.
I have read often about reviewing a charity based on its efficiency, but instead I am more interested in the experience of donating. Consider the emotional reaction you get when watching a few of these TV shows.
1. Extreme Makeover: Home Edition inspires you to root for the families receiving new homes. Their stories are so moving, and as you get to know the families, you sympathize with them. You share their pain, and celebrate with them when they get a brand-new house and have a short family vacation. You’re genuinely happy for them—not at all envious.
As a 23-year-old guy (as of today!), I try not to cry at these shows, but perhaps I do cry on the inside. Without fail, Kacie cries during this show.
2. Shows like Who Wants to be a Millionaire? and Deal? or No Deal? do not evoke the same emotional response. Many of the contestants on these shows deserve to be millionaires, I am sure. Even so, I am not excited when they win. Instead, I am left wishing I were them. The shows are designed in such a way that you can “play along.” And, you don’t know the life stories of these contestants.
Both types of shows give lots to a few lucky people. If I was not watching TV, but instead watching my donation at work, I would favor giving to a deserving family or a small organization, rather than to a larger organization where I don’t know exactly where my dollars are going.
The thought of donating to a large charity is not particularly inspiring for me. However, the chance to learn people’s story, donate to them, and watch their dreams come true – that is something special.
Being able to touch an individual’s life is a powerful thing.
