Money-wise, it’s been a tough year for almost everyone.  One of the many problems with widespread economic distress is people start cutting their spending in the fastest possible ways - unfortunately that often means chopping the annual charitable donations.  This year, the problem is immeasurably worse, since the big guys are toning down donations as well.

So this post is just a reminder that charities’ needs don’t go away in times like these.  If you give to charities regularly, good for you - try not decrease your donations this year especially.  If you haven’t given to charities before (or already spent all your savings on holiday presents for your friends and family), consider that even a small donation of $10, (the cost of a short cab ride or lunch at work) can help make a difference in other people’s lives.  Pick a cause that has some personal meaning to you and then make an impact on it. Check out justgive.org if you need some ideas.  And remind you friends to donate as well - lots of little bits can go a long way (for an example of this, see Apple’s revenue from iTunes where people are spending $.99 at a time).

If you work at a company, don’t forget that many corporations match donations.  You can often double your impact just by filling out a quick form.  Check out your HR website.

You have a couple days left to get your donations completed before 2009 sneaks up on us, so if you want a tax deduction this year, take care of it asap.  But if you read this after 2009 begins, don’t wait until December next year - charities have needs all year long.

Got a plug for a charity that means a lot to you?  Leave it in the comments…

To be sure, maybe people have found they have a whole new risk tolerance this year.  Even investors who were ’safely’ index fund investing realized that even though they own the whole market, they still own stocks, and stocks by are risky investments.

The Finance Buff posts an interesting article on a way to determine your risk tolerance using a “loss-to-income” ratio, or, thinking of your loss in terms of your lost income.  For example, a drop in the stock market causes you to lose 6-months worth of income from your investments, are you ok with that?  Take a look at that article, it’s an interesting concept, since most risk-tolerance questionairres are so abstract in their questions.

Just to keep things interesting and balanced in perspective, here’s a post from out of left field by Tim Ferriss.  He basically says his life is already risky, so his investments shouldn’t be.  A different kind of asset allocation.  He also says don’t invest in anything you don’t understand - a Warren Buffet-ism, if I’m not mistaken.  Words to live by.  Do your research.

How do you quantify your risk tolerance?  Let us know in the comments if your tolerance has changed this year.