Charitable giving and my conscience

Australians are living in a lucky country. We're not living on top of any tectonic plate and thus, rather immune to natural disasters such as huge earthquakes and volcanic erruptions. Our farmers are prone to drought and floods, and we do have massive bush fires every year so those are probably the worst natural disasters that we have.

South Africa is so poor and lacking in resources. Same with South Asia- there's so much corruption that poverty is virtually part of the landscape. America has devastating hurricanes such as Hurricane Katrina and the Gulf hotspot. Yes, we really are lucky. The only thing we need to face are hot 44 degree summers and cold winters where it can be about -1 degrees at the coldest point in winter. Nothing like Canada and their -55 degree winters. I wouldn't permanently migrate to any other country.

Timothy at WealthArtisan posted his story '7 Dollars and the World Around You' and if you like being aware of how you can help other people, it may offer you a different perspective on how your actions can help or change other people's lives.

Human welfare versus animal welfare

Because we're such a lucky country, we're more of a donor nation than a recipient country. I'm constantly torn between whether I should donate to human charities or animal welfare charities. If I donate to charities that provide food to poor nations, then what about the animals/pets who have been dumped on our streets, what about the strays in Greece and what about the countries that support bull or cock fighting, bear baiting and other stupid events that abuse animals?

The different types of giving and donations and how you can help:

• Giving money directly (eg: either one off donations or regular monthly/annual donations)
• Buying fundraising goods (eg: raffles, toys, pens, badges etc)
• Supporting others on their fundraising endeavours (eg: biking, fun runs, baked goods etc)
• Volunteer work and giving your time (eg: petitions, helping with fundraising, helping with admin etc)

Choice of charity and who to give to

There are a few issues that I dislike when it concerns some charities - the ones that pay their directors or chairman a few hundred thousand dollars for working for them, the ones that waste a lot of donations in admin support cost. I've supported the following charities:

• Salvation Army - they help our local poor individuals and families + homeless
• WSPA - they fight and petition for the change in animal welfare laws in countries that abuse animals
• WWF - they support animals and wildlife conservation
• RSPCA - local charity supporting animals that have been dumped and are homeless
• Cancer research - Particularly breast cancer and prostate cancer
• World Vision - poverty in the world

I've been raising funds at work by supplying drinks in the staff fridge. Whenever my colleagues buy the drinks, the profits raised will go to supporting the charities I plan to support next year:

• National Breast Cancer Foundation and their projects involving cancer research because so many women are diagnosed with breast cancer every year
• RSPCA and their multiple projects involving animals
• Doggie Rescue and their projects involving finding new homes for pets that have been dumped by their uncaring owners. Unlike donations getting lost in administration, I can buy them something on their wish list and give it to them, knowing that every dollar has been used on the doggie's welfare
• Find volunteer work to assist the homeless in Sydney

I hope you're giving something back to the community in the form of your time or some donations. If not, please think about it. It can make a difference to people and animal's lives. It really is lucky that some of us can be born in a world of choice and opportunities while some of us are born into a world of poverty and deprivation.

Seeing a homeless man eating food from the rubbish bin really touched me

He was in his late 30s or early 40s. When I first saw the pile of half eaten food waste on the ground, on a ratty pizza box, I thought someone had dumped food on the floor. Until I noticed a man riffling through the rubbish bins looking for food that was dumped. I wasn't sure whether I should approach him or not. Until I saw him eat some steamed broccoli straight from the bin. He is the first homeless person in Australia that I have ever seen going through the bins to find scraps of food to eat.

There I was, at Bondi Beach, where the homes overlooking the beaches are valued at over several millions of dollars. Where there are so many tourists and wealthy people (or maybe over leveraged people!) are living and yet this very skinny, homeless gentleman is eating from the rubbish bin. I asked him if it was alright to give him enough money to buy a few meals.

I didn't want to offend him or embarrass him because it's awkward for him to be doing that in the first place, but he accepted, thanked me and gave me a wide, toothless smile. I could see that he was undernourished and suffering malnutrition. I wish I could do more to change things in this world. I wish I could have offered him a job or more long lasting assistance.

I'm a bit wary with some of the homeless folks. Some of them are sitting surrounded by empty booze bottles and they don't look underfed, only unkempt. I presume that they are fed by the soup kitchens and charities at night so that any donations that go their way are spent on booze and drugs. The average homeless person in Australia living on the streets for 11 years. What can we do to help them?

If that same homeless gentleman had sat there and waited for donations, I'm sure he would have received enough to buy some meals, instead he was proactively going through the bins and not waiting for handouts. In some ways, it demonstrates to me that he is trying to live his life instead of waiting for charity. It makes me wonder, what happened in his past, that led him to this future.

US Minimum wage of $5.85/hour versus Australia's minimum wage of $15/hour

Have a look at the table above listing the unemployment welfare payments available for the unemployed in Australia. Could this be why there is no incentive for people who are long term unemployed to actually go find work? In America, unemployment welfare expires after 99 weeks or so. In Australia, it gets paid indefinitely.

Assuming you're single and living in Australia, government welfare is around $235 per week. The people earning minimum wage in America needs to work the equivalent of 40 hours per week to even earn the equivalent that the unemployed Aussies earn for sitting on their backside and doing nothing. It's a bit loopy and crazy isn't it?!
It's even crazier when you consider that if married or defacto couple were living together, and they were both unemployed, the Australian social welfare payment would be $424/week. While this may seem generous compared to the income of minimum wage workers in the US, it would be a struggle to survive in Sydney with that amount unless you moved out to the suburbs and away from the CBD inflated living costs.

I've been to the US on holiday and things aren't cheap over there. New York is just as expensive as Sydney. Santa Monica was possibly even more expensive than Sydney. So if the cost of living is roughly the same as in Sydney, how does one survive if they earn $5.85/hour?

Over at GRS (Get Rich Slowly), J.D Roth blogged about minimum wage in the US(Edit 25/07/15 hyperlink removed by request of new site owners) - some of the comments elaborate about how most states have higher minimum wage than the Federal minimum wage. But seriously, it probably feels like living in poverty trying to survive on those wages. The best thing for anyone earning that little, is to try and learn new skills and get a new job. They can also cut their expenses by share housing and living in really dingy, overcrowded share housing, put up with the torture for a year or two until they can save up some type of financial cushion and then move out to something nicer once they've organised their finances somewhat.

Working 40 hours @ $6/hour would mean earning $240/week. That's what the Australian government pays our unemployed folks each week for doing nothing at all. Australia's minimum wage is around $15/hour. I know which country I would want to live in if I was given the raw end of the deal! If I was living in the US earning those minimum wages, I'd beg for that little bit extra for a plane ticket to OZ.

Poverty in Asia

Many Asian nations don't even have minimum wage protection. Or social benefits for those unemployed. Sure everyone defends the poor wages and counteracts the argument by saying that the cost of living is a lot cheaper. But a lower cost of living doesn't mean that they're living comfortably. I was talking to a friend about Cambodia and she was telling me that the average income there is $100 USD per month, which is approximately $3-$4 USD per day. If they can't find work, they starve.

Asking for a pay rise

Wisebread.com had a great article about how to demand and ask for a pay rise or negotiate your pay. There's nothing freakier and more offsettling than asking for a pay rise. Maybe that's why people find it easier to just change employers. If you're working at McDonalds or some fast food place, it's probably a dead end asking for a payrise - probably a better idea if you can get additional qualifications and move out of that industry. Most employers expect justification as to why you're expecting a pay increase. What value have you added to the company and your department. What measures have you exceeded and expect to succeed. Sometimes the best way for the increase is to change to a new firm or to get additional qualifications.

That's the best thing about passive investment income, you never have to justify why you've got a capital gain in your property or stock portfolio, it goes up with demand, you never have to demand an increase in dividends, because as the company earns more, you get an increased share of their dividends. If rent goes up in the area where you have an investment property, you don't even need to justify why your rent will go up, because renters can see that the rental rate for the area has gone up and they won't argue with paying your rent.

The greatest money making secret in history

The theory of giving

ThinkBIG, the magazine had an interesting article written by Joe Vitale a few years ago. I thought I'd write about it because, in some wacky ways, what he wrote is rather true. Don't get me wrong, I actually don't find money something that must be hoarded and wrapped in tissue paper. I think that we should be responsible for our future.

I have a little fear. I fear that if something happens to me and I can't support myself, I fear being a burden to others. I fear being homeless. I fear being hungry and being unloved. Perhaps those are common fears? But to prevent those options from arising, I live my life to a certain extent to ensure that if something happens to me, I won't become anyone's burden.

So, back to Joe and his interesting approach to money thoughts (this, being a money/financial blog), he wrote:

"What is the greatest moneymaking secret in history? What is the one thing that works for everyone? Give money away. That's right. Give it away. Give it to people who help you say in touch with your inner world. Give it to people who inspire you, serve you, heal and love you. Give it to people without expecting them to return it - but give it knowing it will come back to you multiplied from some source."

It's fascinating that John D. Rockefeller was quoted in 1924 saying, "...in the beginning of getting money, way back in my childhood, I began giving it away, and continued increasing the gifts as the income increased..."

Give freely. Giving may lead to receiving. Giving may lead to more wealth. Who knows until you try it?! Another interesting tidbit involved the quantity of your gifting:

"If there's one thing I think people do wrong when they practice giving, is that they give too little. They hold onto their money and let it trickle when it comes to giving. And that's why they aren't receiving. You have to give, and give a lot, to be in the flow of life to receive...

I love inspiring stories. I read them, listen to them, share them, and tell them. I decided to thank Mike Dooley of tut.com for the inspiring messages he shares with me and others everyday by email. I decided to give him some money.

In the past I would have given him maybe five dollars. But that's when I came from scarcity and feared the giving principle wouldn't work. This time would be different. I took out my chequebook and wrote a check for US$1,000.

Mike was stunned. He got my check in the mail and nearly drove off the road as he headed home. He couldn't believe it.... And then something wonderful began to happen. I suddenly got a call from a person who wanted me to co-author his book, a job that ended up paying me many times over what I had given away...

Give time and you'll get time.
Give products and you'll get products.
Give love and you'll get love.
Give money and you'll get money.

Think of the person or persons who have inspried you over the last week. Who made you feel good about yourself, you life, your dreams, or your goals? Give that person some money. Give them something from your heart. Don't be stingy... Give without expecting return from that person, but do expect return."

When Joe gave miserly, he reflects that he also got little in return. Which is why he decided to test the theory of giving. In many ways, he really is right. When you give generously, you feel good and you also make someone else feel good.

In terms of giving products, that's probably how bartering came into existence. Someone had too much of some fruit or vegetable, decided to share it with their neighbours, next thing they know, the neighbours decided to share their excess produce too. Next thing you know, the entire village is involved. And everyone benefits.

Random(and not so random) Acts of Kindness

Some friends and relatives give a lot of themselves. Their time, their care and their love. Because of that, it makes me very appreciative and similarly want to give my time, care and love in return. If it works in that way, then why can't it work in the financial sense too? Sounds interesting in a convoluted way.

Not everyone has money to give away of course. So if you don't have money to give away, give away your time or your love and affection. Tell them how much you care and appreciate them. It's like the RAK (Random Acts of Kindness) concept. The www.actsofkindness.org has some really great ideas about things you can do that make others happy, which in turn, can make you happy too.

Australian homeless spend an average 11 years sleeping on the streets

It's rather sad that we're considered a wealthy nation, yet we have our fair share of homelessness on our city streets. You only have to take a walk through the streets of Sydney and a stroll through the park to see the homeless with their meagre possessions and scruffy belongings.

Why are they homeless? This may be a case of 'you can't understand unless you've been there before'.

It's hard to understand why homelessness exist when there are charities and homeless shelters. There are social groups and support services to assist those in financial trouble. I don't know if America or other Asian nations have the same support but over here, we have the equivalent of soup kitchens and a lot of social welfare payments- unemployment welfare (that doesn't run out in 99 weeks like in the U.S), single parents, pension, disability, carers welfare and pension payments. Electricity and housing assistance from the government. The list is almost endless. That's why it's hard for me to understand why we still have people homeless on the streets.

One of the bloggers - Boston Gal, her greatest fear is becoming a bag lady. I can understand her fear. Who doesn't dread the thought of becoming homeless. A lot of the stories that she's been outlining in her blog illustrates ordinary people who are on the verge of being homeless.

Yet an article from news.com.au state that the average Australian homeless person spends up to 11 years on average homeless. It's a very sad statistic.

Volunteers who tried to interview every homeless person in Sydney, Melbourne and Brisbane found many were worse off than those living on the streets in New York, LA and Chicago.

More than 50 per cent of those questioned were vulnerable, those most at risk of death due to age or ill health, compared with 44 per cent in America.

The at-risk group was also spending an average of 11 years on the streets in Australia - five years longer than the US.

The surveys took place as part of a fresh drive to find housing for rough sleepers.

The research led by Australia's Mercy Foundation involved local welfare groups and US charity Common Ground, which helped drive the surveys and crunch the numbers.

Common Ground organiser Kara Mergl said people were finding themselves homeless at a younger age than in America.

"It is striking that the vulnerability rates are higher," she said.

"Some people who are finding themselves on the streets at 15 or 16 are still sleeping rough for decades.

"We believe the early age people are finding themselves homeless is because of the higher rates of foster care in this country.

"Those accessing services in their youth are then most likely to end up homeless."

This week, more than 200 of 262 known homeless people in Sydney were questioned by volunteers.

Their surveys found 13 per cent of the homeless in Sydney were Aboriginal.

Contrary to public perception, most respondents said they were not living homeless out of choice.

"The majority of people living homeless are doing so because of a crisis," Ms Mergl said.

"What the work here is doing is taking the barrier down - we are simply saying we have a unit and we want to minimise the effort it takes to get back into housing."

More than 80 volunteers surrendered their sleep to hit the streets of Sydney at 4.30am on Monday, Tuesday and Wednesday to question rough sleepers on their housing and healthcare needs.

The research in Sydney was led by the Mercy Foundation, which partnered Way2Home outreach service, the Salvation Army and Missionbeat to conduct the research.

Similar work in Brisbane led to the housing of 30 vulnerable people, a spokeswoman for the Mercy Foundation said.

Read more: http://www.news.com.au/national/homeless-sleep-rough-for-longer-in-australia-than-us-survey/story-e6frfkvr-1225947818736#ixzz14HkZ8Ql7

If that isn't something that inspires you to get your financial house in order, just imagine in the future, it's highly likely that social welfare payment won't exist. So chances are, you'll be on your own and there's no backup plan from the government. Do yourself a favour, and start looking out for your future self by taking action now if you haven't already done so.