Saving Money on Charitable Donations

This post is part of a multi-part series on Saving Money A to Z here at Frugal Follies.

This month, I am doing the Give Away Your Clutter Challenge, where I am getting rid of unwanted items in my household and giving them to charities. I'm doing this not only to get rid of household clutter and to help the charities, but to help myself as well.

As the year ends, it means that doing your taxes is right around the corner. And giving charitable contributions can help lower your taxes, if you are able to itemize. But how do you make sure that you're getting the most deductions possible?

First of all, before I try to deduct something, I make a list of everything that I am contributing.  I take a photo of the contributions, and I always, always, always get a receipt from the organization to which I am giving, which goes immediately into my tax file for that year.

To figure out the I use the ItsDeductible online software from TurboTax.  The software allows you to track all your donations - cash, mileage, and donations.  And it helps give you a value on the items you've donated.  The folks at ItsDeductible have assigned a value for used goods - for goods in good condition as well as in fair condition.  (It does not give a value for items in poor condition, as these items cannot be deducted from your taxes.  So if you have something usable, but in poor condition, you cannot deduct its value.)

Since you have your list of items you donated - and you did make a detailed list, didn't you? - search for those items and enter how many of each item you donated.  The software will the calculate for you the value of your items.

Is your item not in their list?  You can add other items.  But how do you figure out a value?  One way is to go to eBay and search for a similar item.  Then on the left sidebar, click the checkbox for "Completed items."  (You will need to have an eBay ID for this.)  Then you can see how much your similar item was worth to buyers, which should help you figure out a value for your item.

Another method would be to go to a thrift shop, a yard sale, or another place where used items can be purchased, and see how much a similar item is selling for.

You might want to check out the values on items before you donate.  If you feel that the values listed are much lower than what the item is worth, you might want to try to sell it rather than donate.

How much will you save on your taxes?  First of all, if you don't have enough deductible items to itemize, you won't save anything.  I have this problem because I don't have enough mortgage interest to take deductions each year.   I get around this by using an every other year tax strategy, where one year I take the standard deduction and the other year I itemize.  See my tax strategy here. If you don't have enough deductions this year to itemize, you might want to wait on donating your items until the next year, when your deductions might be higher.

If you do itemize, your savings will be based on your top tax rate.  If your top tax rate is in the 25% tax rate, then you'll save 25% of the value of the items. 

Hope this helps you save the most you can on your charitable donations!

For more frugal tips, please check out the bloggers listed on the left sidebar under Frugal Tips Linkups. There are lots of great ideas on each blog and I'm sure you'll find lots of wonderful tips!

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Saving Money on Taxes

This post is part of a multi-part series on Saving Money A to Z here at Frugal Follies.

Ah, taxes.  Don't you just love this time of year?

Here's what I do to save on taxes:

Because I'm nine years into a fifteen year mortgage, don't have a lot of unreimbursed health expenses, and have fairly low property taxes and no state income taxes, I generally don't have enough deductions to itemize my return.  So I'm stuck with the standard deduction each year, right?

Nope.  Instead, I lump my expenses which can be itemized into every other year.  For instance:

• In odd years, I pay thirteen mortgage payments - I wait until January starts to pay January's payment (being sure not to send it after the deadline), and I pay next January's payment in December of that year.  In even years, I only pay eleven payments.
• In odd years, I pay the current year's property taxes in January (my property taxes are not escrowed with my mortgage payment), even though the bill is sent in October. (The latest the taxes can be paid is March 31.) I pay the next year's property taxes in October.  In even years, I don't make a property tax payment.  I do pay a small penalty for paying my taxes in January rather than October, but this is small compared to the savings I will get.
• If I'm going to make a large donation to charity, if possible I wait until the odd year to make it.
• I donate more unused items to charity during the odd years.

Then, in the odd year, I have enough deductions to itemize.  But in the even years, I take the standard deduction.

How much can this strategy save?  This year's standard deduction for a married couple filing jointly is $11,600.  So if you have more than $11,600 in deductions, you would itemize; otherwise, you would take the standard deduction.

Suppose a couple has $10,000 in deductions each year.  But using my strategy, they're able to move $3,000 in property taxes, $400 in mortgage interest, and $1000 in charity deductions to the odd year.  So in the even year, they'd take the standard deduction, and save nothing.  But in the odd year, they'd have $14,400 in deductions, and itemize.  Assuming the couple is in the 25% tax bracket, they would save ($14,400 - $11,600) * .25, or $700.

Not bad for just a little shifting of when you pay your bills!

Another way I save is by doing my own taxes.  I use the TurboTax online version.  It's really easy to use, and the simplest tax returns are free.  If yours is more complicated, you pay when you file, not when you start using the software. 

Another option is the H&R Block Home version.  The good thing about this version is that if you purchase the self-employed version of the software, you are also entitled to one free session with an H&R Block tax professional, so you can be sure that everything was done correctly.

For more frugal tips, please check out the bloggers listed on the left sidebar under Frugal Tips Linkups. There are lots of great ideas on each blog and I'm sure you'll find lots of wonderful tips!

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Saving Money on Crocheting Afghans

This post is part of a multi-part series on Saving Money A to Z here at Frugal Follies.

Yesterday I posted about how much I love my afghan - how it is both a cherished item I made when I was younger, and how it now helps me save money.  If you don't have one, and want one, here are some tips:

If you don't want to make one yourself:

• Find a friend or relative who will make one for you.  They might be willing to give you one as a gift for a birthday or holiday, or maybe they will provide free labor in exchange for you purchasing the materials.  Of course, thank them profusely!
• Maybe a friend or family member is overblessed with afghans.  We have several, gifts from my husband's grandmother. Perhaps they'd be willing to give you one, or exchange for something else.
• There are often lots of afghans available at thrift shops for cheap.  Also check yard sales.
• Check online sources like eBay for used afghans.
• Check Etsy, an online site for crafters, for folks that will sell you ready-made afghans, or will make crocheted afghans to your specifications on commission.

If you don't already know how to crochet:

• Ask a friend or relative for lessons.  Again, this could be a great birthday or holiday gift from them to you.
• Check out craft or yarn stores in your area to see if they have beginner's lessons for cheap.  They might hold them, hoping that you'll then purchase your materials at the store.
• There are lots and lots of sites on the Internet that can teach you how to crochet.  Also check YouTube for videos - these will help far more than written instructions.

To get materials cheaply:

• Consider making a granny square afghan, or other type of afghan that utilizes scrap yarn.
• Ask friends and relatives for yarn and crochet hooks that they've used in previous projects.  
• Also, check thrift shops and yard sales.  I often see large bags filled with scrap yarn that cost very little.  Use what you can and pass on the rest.  Also look out for pattern books.
• Pattern books can also be checked out of the library - make a copy of the pages you need, or copy down the directions.  And there are lots of free patterns available on the Internet.
• Watch for sales at craft shops.  Check their websites for coupons.
• If you're short on time, Etsy has sellers who provide premade granny squares, which you can then fasten together to make an afghan of the size you wish.

Good luck!  Hope you love your afghan as much as I do!

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Saving Money on Gas

This post is part of a multi-part series on Saving Money A to Z here at Frugal Follies.

Now that gas has hit $3 per gallon in many areas, including mine, I'm sure many people are looking for ways to save on gas.

There are a few categories of ways to save.  One is by making improvements to your car so that it will use less gas.  I really don't have any expertise on this, so I'm going to leave it to other bloggers to give hints on this.

Secondly, you can just drive less.   Here are some ideas to make that happen:

• Before you decide to go somewhere, think about whether it is really necessary at this time, or if you can go when you have other errands to run as well.
• Group trips together.  Try to put all non-emergency trips at one time, so that you're not driving across town all the time.  Today, I wanted to go to the library and to ALDI, but they are in different directions.  So, I did the more important stop (ALDI, since we were out of milk) and left the library trip for another day.
• Plan your trips to make as many right turns, and as few left turns, as possible.  Yes, seriously.  UPS does this to save on gas.  If you have several stops to make, choose a route that will minimize left turns, since you often have to stop and wait for a few minutes to get the green arrow and make the turn.  All that time, you're idling and wasting gas.  In most places, you can make a right turn on red after stopping and yielding to oncoming traffic, so usually you will sit for less time.
• Carpool whenever possible.
• Walk.  Yes, I know it's pretty radical, but maybe there are places you can go within walking distance.  I have a CVS that I can walk to - one day, I should do the math and see how much it costs to start the car and drive to Walgreens and back instead.  Yes, it takes a little longer, but don't we all need the exercise?

Thirdly, you can just pay less for the gas you use.  Some ideas:

• Use a website like Gasbuddy.com or Mapquest Gas Prices to find the cheapest gas in your area, or in an area where you plan to be (if you'll be in a less expensive area, it will save to get gas there).
• Look for gift card deals at your local grocery store.  Both Winn-Dixie and Publix have had deals where if you buy a certain amount of groceries, you can save $5 or $10 off the cost of a gas station gift card.  That's free gas!
• You can try buying gas gift cards for less than their face value, either on an auction website or on a site that allows people to buy, sell, or trade gift cards.  I'm not sure how safe this idea is, but if you're willing to take a chance, you can try it.  
• Look for blog giveaways that are giving away gas gift cards.  Follow the instructions and try to enter as many times as the rules allow.  You never know!

Check out these sites for other frugal ideas:

• Frugal Friday @ Life as MOM
• Making Dollars out of Change @ Madame Deals
• Penny Pinching Party @ The Thrifty Home 
• Works For Me Wednesday @ We Are That Family
• Thrifty Thursday @ Coupon Teacher 
• Fantastic Frugal Fridays at Frugality Is Free and Being Frugal and Making It Work
• Money Saving Monday @ Homebody  

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Saving Money on Books

This post is part of a multi-part series on Saving Money A to Z here at Frugal Follies.

I've done quite a bit of selling books online, so I thought I'd share some ideas on how to get the best prices on books.  With the holidays coming up, I'm sure a lot of parents would like to get some books as gifts for their kids, but don't want to pay bookstore prices.

If you can, buy books used - they are far cheaper than buying them at the bookstore.

• When looking to buy single copies of books online, use a book aggregator like Bookfinder.com, which will list several online sources for a specific book, and includes shipping in the cost of the item.
• Look for your book as part of a book lot on eBay.  After you remove the book you want, resell the unwanted books as a lot on eBay.  You might be able to get the book for free, or even make a profit on the lot!
• Check out book sales at the library, garage sales, or thrift shops for books.
• Ask around!  Perhaps a friend has the book you are looking for in their library already.  Perhaps you could swap books.
• If you don't actually need to buy the book, but just want to read it, definitely check out your public library.  Even if your library system does not have the book you want, almost any book can be gotten through an interlibrary loan.  Ask your librarian for more details.

If you absolutely must buy a new book, try some of the following ideas:

• Most of the major bookstores have customer rewards programs, where you can receive a percentage off of books.
• Buy books at national chain discount stores, which also sell personal care items, cleaning supplies, and/or groceries.  Find deals that use coupons which will result in an overage (saving more money than you spend on the item).  Use the overage toward the purchase of books.
• Look for a Scholastic Books warehouse sale in your area.  Books go on sale there for 50-80% off just before the holidays.  The fine print says that the warehouse sale is "exclusively for school employees, school district personnel, homeschoolers, and Book Fair chairpeople / volunteers."
• Join Swagbucks and earn points by doing searches, watching videos, and filling out surveys.  Once you've earned 450 Swagbucks, you can get a $5 Amazon.com gift card, which can then be used to buy books.

Leave a comment with your favorite tip to save on books!

Check these sites for more great tips and frugal ideas:

• Frugal Friday @ Life as MOM
• Making Dollars out of Change @ Madame Deals
• Penny Pinching Party @ The Thrifty Home 
• Works For Me Wednesday @ We Are That Family
• Thrifty Thursday @ Coupon Teacher 
• Fantastic Frugal Fridays at Frugality Is Free and Being Frugal and Making It Work
• Money Saving Monday @ Family Friendly Frugality 

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Saving Money on Toys

This post is part of a multi-part series on Saving Money A to Z here at Frugal Follies.

The toy-buying season is upon us!  Last week's Sunday newspaper was chock-full of toy catalogs from all the major stores.  My youngest daughter had fun looking through all the catalogs and making a list of what she would like to get.  Luckily, the list wasn't too long, and of course she won't get everything.  But here are some ideas to save money on new toys:

• Keep an open mind about where to buy new toys.  Besides the obvious toy stores and national discount chains, look at drug stores, grocery stores, craft stores, and office supply stores.  With the state of the economy as it is, consider shopping at a locally-owned small business, where your dollars will stay in your local community.
• Look for coupons for stores which give money off a certain purchase.  There is a new Toys R Us in my area, and a few days ago, a flier came in the mail offering $5 off a $25 purchase.  I am looking forward to using that!
• Look for store-issued toy coupons.  You can find these in the catalogs, or at the store.  Target has many store coupons for toys at their website (scroll down and click on "Coupons."
• Look for manufacturer-issued coupons.  There are some toy coupons available right now at Coupons.com, and there are DVD coupons as well.  Coupons may appear in the Sunday inserts as well.
• Combine two different coupons, or all of these coupons, if your store allows it, to save even more!  Check with the service desk to make sure this is allowed.
• Check the weekly advertisements to see what's on sale that week.  Match sales with coupons to save.
• Buy needed household items at CVS which give Extra Care Bucks, which you can then use to purchase toys.  Or, at Walgreens, buy items which will print Register Rewards.
• Join Swagbucks and earn points by doing searches, watching videos, and filling out surveys.  Once you've earned 450 Swagbucks, you can get a $5 Amazon.com gift card, which can then be used to buy toys.  Or, use your Swagbucks to purchase toys directly from their catalog.  Click here to join Swagbucks.

Any other ideas on how to buy new toys inexpensively?  Leave a comment below!

Check these sites for more great tips and frugal ideas:

• Frugal Friday @ Life as MOM
• Making Dollars out of Change @ Madame Deals
• Penny Pinching Party @ The Thrifty Home 
• Works For Me Wednesday @ We Are That Family
• Thrifty Thursday @ Coupon Teacher 
• Fantastic Frugal Fridays at Frugality Is Free and Being Frugal and Making It Work
• Money Saving Monday @ Family Friendly Frugality 

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Saving Money on Air Conditioning

This post is part of a multi-part series on Saving Money A to Z here at Frugal Follies.

Finding ways to save money on AC probably isn't a big issue for most of you now, with the cool fall weather coming.  But here in the warmer parts of the United States, it's almost a year-round concern.  Seems to me that there are basically two ways to save on air conditioning:

1.  Turn up the thermostat and get used to a warmer temperature in the house.
2.  Run the air conditioning more efficiently.


So here are some ideas I had to beat the heat in the house:

• Open the windows - only if it's cooler outside than inside.
• Run ceiling fans when you are in the room.  Turn them off when you leave a room, though.
• Use box fans as well.  Keep them out of reach of children.
• Wear lighter clothing that allows air movement.  Keep your shoes off.
• Drink cool drinks, even when (and especially when) you're not thirsty.
• Find another cooler place to be, especially during the hottest parts of the day.
• Try to create as little heat energy from cooking as you can by cooking with a crockpot, outside on a barbecue, or by eating more meals that don't require cooking.
• Don't run dishwashers or other heat-producing, washer/dryers, or other heat-producing appliances during the warmest parts of the day.
• Gradually get yourself used to having a higher temperature in the house.  Try increasing the air conditioning temperature by one degree every few days; once it truly becomes unbearable, bring it down slightly.

As for running the air conditioning more efficiently, that's a subject that many experts have delved into.  I certainly am not an expert, so let me point you to some folks who know more about the subject:

• Mr. Electricity has 37 ways to help you, including changes to your attic and roof that you can make.
• Cash Money Life has some great suggestions on changes you can make in your home.
• The folks at Consumer Reports have some great tips on changing your light bulbs and creating shade within the house.

Check these sites for more great tips and frugal ideas:

• Frugal Friday @ Life as MOM 
• Making Dollars out of Change @ Madame Deals 
• Tuesday's Tips @ Couponomic Stimulus Package 
• Penny Pinching Party @ The Thrifty Home 
• Works For Me Wednesday @ We Are That Family
• Thrifty Tip Tuesday @ I Am a Money Magnet 
• Tightwad Tuesday @ Raising 4 Godly Men
• Thrifty Thursday @ Melissa's Bargain Blog
• Thrifty Thursday @ Coupon Teacher 
• Fantastic Frugal Fridays @ Frugality Is Free 
• Money Saving Monday @ Family Friendly Frugality 

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