One of the roadblocks we sometimes face when thinking about giving money to charitable causes is the sense that our money can't make much of a difference. Warren Buffet's billions could certainly make a dent in solving some of the world's problems, we figure, but what can my measly $50 do? Quite a bit, it turns out. In recognition of that fact, this year's Nobel Peace Prize went to Muhammad Yunus and the bank he founded for their pioneering work in microcredit.
According to a Wall Street Journal story on 10/14, 30 years ago Yunus loaned $27 to some female bamboo stool weavers in Bangladesh. He believed the poor could prove just as creditworthy as those with means, and that micro lending could help the poor rise above poverty. Three decades and 6.6 million small loans later, he's been proven right on both counts.
Matt's View
Thanks to Yunus' work, there are now many organizations involved in microcredit. If you're interested in supporting such work, you might consider giving to Opportunity International. There are many other groups that are making a big difference with relatively small donations as well. For example, for the 38 million Americans who do not have enough food, just $1 enables 20 pounds of food to be delivered to hungry people via America's Second Harvest, a national food bank network.
Think you can't afford to donate the sums needed to make a difference? Think again.
In our search for happiness we often assume money must play a role. And it does. Research shows that when people move from poverty to the middle class their happiness grows a lot. However, research also shows that as a person moves further up the economic ladder, happiness hardly grows at all. The Wall Street Journal recently reviewed a series of studies about the relationship between money and happiness and concluded that the route to more joy usually travels through places other than more money, like spending time with friends and volunteering. Several studies looked at the happiness impact of how we manage what is typically our largest expense--housing--and concluded that it's generally best if we don't buy a house near folks who are wealthier than us or one that comes with a long commute.
Matt's View
This isn't to suggest that we should apologize for our ambition. In fact, one of the proven sources of happiness is working toward challenging goals. Nor is it to suggest that we should dial down our desire for a "better life." However, we would be wise to understand what truly brings about a better life, and direct our ambitions there.
Have you ever set foot in a dollar store? Apparently more and more of us have. Citing ACNielsen data, the 10/22 issue of the Chicago Tribune noted that two-thirds of all Americans shopped at a dollar store last year. The article said dollar stores not only offer good prices on a lot of items, they've also come a long way from their somewhat dingy, disorganized past. The national chains, including Dollar General, Dollar Tree, and Family Dollar, typically operate clean stores, offer brand-name merchandise, and some even sell fresh produce. The article noted that dollar stores are especially good places to buy decorations, cleaning supplies, inexpensive toys, school and office supplies, and snacks.
Matt's View
I recently compared prices between a mainline grocery retailer (Jewel), a "value" retailer (Aldi), and two national dollar store chains (Dollar Tree and Dollar General). Aldi had a version of everything I shopped for at Jewel and, in most cases, offered the best prices. However, most of its "brands" were unfamiliar private labels. Dollar General had more of the items found at Jewel than Dollar Tree as Dollar Tree focuses more on non-food items. Dollar General also had the best price, by far, on laundry detergent: $3.96 for 200 ounces.
If you generally shop at just one or two stores for most of your groceries and other household items, check out some of these deep discounters. You'll be surprised at how far they'll help you stretch a dollar.
Credit card fine print is getting even finer both from a cardholder's perspective (more difficult to read and understand) and from a card issuer's perspective (likely to contain provisions that generate additional revenue). According to an article in the Washington Post on 10/15, a recent government report found cardholder agreements difficult to read and riddled with provisions stacked against cardholders. Such provisions include the issuers' ability to raise interest rates if cardholders are late in paying other bills, charging different rates for different types of transactions, and charging fees for transferring your balance elsewhere. The report also noted that late payment penalties have risen to an average of nearly $34--up from about $13 in 1995.
Matt's View
It's no wonder that penalty fees now account for one-third of the credit card industry's revenue--double the amount from 10 years ago. Our best defense is to pay online to help avoid late payments and pay the balance in full every month to avoid interest charges. However, according to a 10/15 Time magazine article, card issuers are thinking of instituting a fee for people who don't carry a balance. Just what we need: a penalty for being wise with our money!
