Comments on: Charitable giving vs. the value of compounding and debt reduction—a dilemma and temporary solution http://financefreelancelife.com/2007/09/23/charitable-giving-vs-the-value-of-compounding-and-debt-reduction%e2%80%94a-dilemma-and-temporary-solution/ Thu, 18 Mar 2010 08:58:58 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Norak http://financefreelancelife.com/2007/09/23/charitable-giving-vs-the-value-of-compounding-and-debt-reduction%e2%80%94a-dilemma-and-temporary-solution/#comment-18481 Norak Sat, 17 May 2008 12:55:15 +0000 http://financefreelancelife.com/?p=70#comment-18481 I'm in the same situation. So far this year I've given $300 to charities but I wonder if that is enough. I need to save it to earn more to give to charities in the future. I think that when I retire, I will just live frugally and whatever I have left over I will give to charity. Good charities I think are Unicef and World Vision. I’m in the same situation. So far this year I’ve given $300 to charities but I wonder if that is enough. I need to save it to earn more to give to charities in the future.

I think that when I retire, I will just live frugally and whatever I have left over I will give to charity. Good charities I think are Unicef and World Vision.

]]> By: SavingDiva http://financefreelancelife.com/2007/09/23/charitable-giving-vs-the-value-of-compounding-and-debt-reduction%e2%80%94a-dilemma-and-temporary-solution/#comment-103 SavingDiva Wed, 26 Sep 2007 17:22:00 +0000 http://financefreelancelife.com/?p=70#comment-103 I think volunteering your time is a lot more important that donating money. While money is important, a personal touch (especially from some one who cares) is priceless. I participating in a mentoring program last year with a troubled youth (in some trouble with the law) and watching her develop was amazing. When I spoke with the volunteer coordinator, she mentioned that they don't need any more donations, they just need more volunteers...I guess a lot of kids want to participate, but the program doesn't have enough mentors... I think volunteering your time is a lot more important that donating money. While money is important, a personal touch (especially from some one who cares) is priceless. I participating in a mentoring program last year with a troubled youth (in some trouble with the law) and watching her develop was amazing. When I spoke with the volunteer coordinator, she mentioned that they don’t need any more donations, they just need more volunteers…I guess a lot of kids want to participate, but the program doesn’t have enough mentors…

]]> By: Anonymous http://financefreelancelife.com/2007/09/23/charitable-giving-vs-the-value-of-compounding-and-debt-reduction%e2%80%94a-dilemma-and-temporary-solution/#comment-102 Anonymous Tue, 25 Sep 2007 17:58:00 +0000 http://financefreelancelife.com/?p=70#comment-102 If you have religious reasons for wanting to give more, keep in mind one thing: you can never outdo God in generosity. And His generosity is in all things--not just money and time. If you have religious reasons for wanting to give more, keep in mind one thing: you can never outdo God in generosity. And His generosity is in all things–not just money and time.

]]> By: LISA EMRICH http://financefreelancelife.com/2007/09/23/charitable-giving-vs-the-value-of-compounding-and-debt-reduction%e2%80%94a-dilemma-and-temporary-solution/#comment-101 LISA EMRICH Tue, 25 Sep 2007 13:44:00 +0000 http://financefreelancelife.com/?p=70#comment-101 Oops, I forgot to reinsert FICA/Medicare taxes. And with new rules, you are eligible for a credit based on retirement contributions. Here's a revised breakdown.<br/><br/>Gross Income: $40000<br/>Taxes: $ 3600<br/>SIMPLE-IRA: $ 6000<br/>Health Ins: $ 3000<br/>Charity: $ 600<br/>Roth-IRAs: $ 6000<br/>Student Loan: $ 2400<br/>Savings: $ 2400<br/><br/>Take Home: $16000 Oops, I forgot to reinsert FICA/Medicare taxes. And with new rules, you are eligible for a credit based on retirement contributions. Here’s a revised breakdown.

Gross Income: $40000
Taxes: $ 3600
SIMPLE-IRA: $ 6000
Health Ins: $ 3000
Charity: $ 600
Roth-IRAs: $ 6000
Student Loan: $ 2400
Savings: $ 2400

Take Home: $16000

]]> By: LISA EMRICH http://financefreelancelife.com/2007/09/23/charitable-giving-vs-the-value-of-compounding-and-debt-reduction%e2%80%94a-dilemma-and-temporary-solution/#comment-100 LISA EMRICH Tue, 25 Sep 2007 06:05:00 +0000 http://financefreelancelife.com/?p=70#comment-100 Good for you!!<br/><br/>As someone who is self-employed, 39, living outside DC, here's my thoughts. I've scanned through several of your posts and think I have an idea of your current needs and future hopes.<br/><br/>You express an interest in making/selling quilts and donating proceeds. Think of your quilt-making as a business which will allow to donate funds AND contribute to retirement NOW. The numbers below estimate what could be possible with your current temp earnings and your husband's stipend per semester.<br/><br/>Gross Income = $40000<br/>Tempwork: $24000<br/>Stipend: $10000<br/>Sewing: $ 6000<br/>(after cost of materials, advertising, shipping, etc)<br/>Bank Interest: ?<br/><br/>Adjustments to Inc.= $9424<br/>1/2 Self-employ.Tax: $424<br/>SIMPLE-IRA contrib.: $6000<br/>Health Insurance: $1800<br/>Health Savings Acct: $1200<br/>(ie.Carefirst HD-HSA plan)<br/><br/>Adj. Gross Income = $30576<br/><br/>Standard Deducts = $16900<br/>(you likely will not have enough deductions to be able to include Student Loan Interest or Donations)<br/><br/>Taxable Income = $13676<br/><br/>Taxes Due = $1792<br/>Income Tax: $1368<br/>Business: $ 424<br/><br/><br/>So what does that allow you to do with your money?<br/><br/>Gross Income: $40000<br/>Taxes: $ 1792<br/>SIMPLE-IRA: $ 6000<br/>Health Ins: $ 3000<br/>Charity: $ 1200<br/>Roth-IRAs: $ 6000<br/>Student Loan: $ 3000<br/>Savings: $ 3000<br/><br/>Take Home: $16008<br/><br/>Monthly: $ 1334<br/><br/>Rent, Utilities: $850<br/>Food, Household: $250<br/>Gas, Metro: $ 75<br/>Dates, Fun: $ 75<br/>Misc.: $ 34<br/>Emergency Fund: $ 50<br/><br/><br/>Now there are many assumptions I have made in arriving at these numbers. But I hope that it gives you some ideas.<br/><br/>Take care,<br/>Lisa Good for you!!

As someone who is self-employed, 39, living outside DC, here’s my thoughts. I’ve scanned through several of your posts and think I have an idea of your current needs and future hopes.

You express an interest in making/selling quilts and donating proceeds. Think of your quilt-making as a business which will allow to donate funds AND contribute to retirement NOW. The numbers below estimate what could be possible with your current temp earnings and your husband’s stipend per semester.

Gross Income = $40000
Tempwork: $24000
Stipend: $10000
Sewing: $ 6000
(after cost of materials, advertising, shipping, etc)
Bank Interest: ?

Adjustments to Inc.= $9424
1/2 Self-employ.Tax: $424
SIMPLE-IRA contrib.: $6000
Health Insurance: $1800
Health Savings Acct: $1200
(ie.Carefirst HD-HSA plan)

Adj. Gross Income = $30576

Standard Deducts = $16900
(you likely will not have enough deductions to be able to include Student Loan Interest or Donations)

Taxable Income = $13676

Taxes Due = $1792
Income Tax: $1368
Business: $ 424

So what does that allow you to do with your money?

Gross Income: $40000
Taxes: $ 1792
SIMPLE-IRA: $ 6000
Health Ins: $ 3000
Charity: $ 1200
Roth-IRAs: $ 6000
Student Loan: $ 3000
Savings: $ 3000

Take Home: $16008

Monthly: $ 1334

Rent, Utilities: $850
Food, Household: $250
Gas, Metro: $ 75
Dates, Fun: $ 75
Misc.: $ 34
Emergency Fund: $ 50

Now there are many assumptions I have made in arriving at these numbers. But I hope that it gives you some ideas.

Take care,
Lisa

]]> By: Catherine Lawson http://financefreelancelife.com/2007/09/23/charitable-giving-vs-the-value-of-compounding-and-debt-reduction%e2%80%94a-dilemma-and-temporary-solution/#comment-99 Catherine Lawson Mon, 24 Sep 2007 16:37:00 +0000 http://financefreelancelife.com/?p=70#comment-99 At least you're giving something now. Don't worry that you won't have given enough if you die by your thirty. That is a horrible thought - and I'm sure you won't burn in hell because you wanted to pay off your husband's student debt! At least you’re giving something now. Don’t worry that you won’t have given enough if you die by your thirty. That is a horrible thought – and I’m sure you won’t burn in hell because you wanted to pay off your husband’s student debt!

]]> By: Kyle http://financefreelancelife.com/2007/09/23/charitable-giving-vs-the-value-of-compounding-and-debt-reduction%e2%80%94a-dilemma-and-temporary-solution/#comment-98 Kyle Mon, 24 Sep 2007 14:37:00 +0000 http://financefreelancelife.com/?p=70#comment-98 Great post! I have found that giving time not only makes me feel like I am contibuting to my community but also contributing to the building of my character. Great post! I have found that giving time not only makes me feel like I am contibuting to my community but also contributing to the building of my character.

]]> By: Anonymous http://financefreelancelife.com/2007/09/23/charitable-giving-vs-the-value-of-compounding-and-debt-reduction%e2%80%94a-dilemma-and-temporary-solution/#comment-97 Anonymous Sun, 23 Sep 2007 22:22:00 +0000 http://financefreelancelife.com/?p=70#comment-97 Ya great post. We must remember what we give we get back times ten one way or another. I have done charity work, given food to the homeless, given money to some destitute people and I also like to give to feed the Children. It is a great organization. Children have no control over thier situation and they cannot get a job. No children should ever go to bed with an empty stomach but, they do right here in the USA. We are the land of plenty but, some still live in poverty. That should never happen anywhere. If people can volunteer they should or give they should. Paying debt is wonderful but, thinking of others is just great. When we all set aside our differences and think of others we can find what true love is all about. They say to give 10% if you can. It is also tax deductible. Other things people do is give old clothes or things uneeded to charitable orginizations such as Salvation army. They give coupons for you to buy things there if you wish and you can deduct what you donated from your taxes. You determine what you would have sold the items for at a garage sale and you deduct the amount from your taxes. Debt is not a four letter word ( joke meaning curse word)!! Don't worry it will be paid. A great deal of people are further in debt than you are!!! Have a great week and good luck!! Annette Ya great post. We must remember what we give we get back times ten one way or another. I have done charity work, given food to the homeless, given money to some destitute people and I also like to give to feed the Children. It is a great organization. Children have no control over thier situation and they cannot get a job. No children should ever go to bed with an empty stomach but, they do right here in the USA. We are the land of plenty but, some still live in poverty. That should never happen anywhere. If people can volunteer they should or give they should. Paying debt is wonderful but, thinking of others is just great. When we all set aside our differences and think of others we can find what true love is all about. They say to give 10% if you can. It is also tax deductible. Other things people do is give old clothes or things uneeded to charitable orginizations such as Salvation army. They give coupons for you to buy things there if you wish and you can deduct what you donated from your taxes. You determine what you would have sold the items for at a garage sale and you deduct the amount from your taxes. Debt is not a four letter word ( joke meaning curse word)!! Don’t worry it will be paid. A great deal of people are further in debt than you are!!! Have a great week and good luck!! Annette

]]> By: Millionaire Mommy Next Door http://financefreelancelife.com/2007/09/23/charitable-giving-vs-the-value-of-compounding-and-debt-reduction%e2%80%94a-dilemma-and-temporary-solution/#comment-96 Millionaire Mommy Next Door Sun, 23 Sep 2007 15:16:00 +0000 http://financefreelancelife.com/?p=70#comment-96 Great post. You pose some tricky questions and I commend you for thinking about this at your young age.<br/><br/>Here's my .02 cents, or rather, what I chose to do:<br/><br/>In my 20's: first priority was paying off debt and avoiding new debt. I started contributing to my IRA once I was shown the incredible power of compounding. I didn't finish college, so I explored self-employment options and became an apprentice to learn new skills. Helped others by serving as a volunteer.<br/><br/>30's: Focused on growing our businesses. Created a lifetime financial plan. Continued to volunteer (a bunch!!!), but didn't send money to charities because I decided it was more effective to grow my money first, hence have more to share later.<br/><br/>40's (I'm 43 now): Grew our money to a point that I can now focus all my time and energy (what's left after caring for my 2 yr old anyway) to making a difference in the lives of others. My time is free to volunteer, blog to educate and empower others- even generate some income via blogging to fund micro-loans to women entreprenuers in developing countries.<br/><br/>It is a fine balance and we all do what we think is best. Again, good post! Great post. You pose some tricky questions and I commend you for thinking about this at your young age.

Here’s my .02 cents, or rather, what I chose to do:

In my 20’s: first priority was paying off debt and avoiding new debt. I started contributing to my IRA once I was shown the incredible power of compounding. I didn’t finish college, so I explored self-employment options and became an apprentice to learn new skills. Helped others by serving as a volunteer.

30’s: Focused on growing our businesses. Created a lifetime financial plan. Continued to volunteer (a bunch!!!), but didn’t send money to charities because I decided it was more effective to grow my money first, hence have more to share later.

40’s (I’m 43 now): Grew our money to a point that I can now focus all my time and energy (what’s left after caring for my 2 yr old anyway) to making a difference in the lives of others. My time is free to volunteer, blog to educate and empower others- even generate some income via blogging to fund micro-loans to women entreprenuers in developing countries.

It is a fine balance and we all do what we think is best. Again, good post!

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