Published on: 02 November 2018
Last Updated on: 30 October 2024
There is no magic button that can help you manage your finances. It takes time to learn how to manage your finances in the right way in order to avoid being stressed about money. Many people have a problem with managing finances and this is the reason why many people are always stressed about money. It is not about the amount of money you earn, it is how you manage it that counts.
Most of the people who are not able to finance correctly will always end up stressed and probably always broke. In such a case, it is important to ensure that you have a money coach, someone that can guide you through the process so that you learn.
3 Must-Know Accounting Tips To Help You Finance Correctly
There are firms like Marsh Tincknell Accountants that in addition to giving you accounting advice, can also help you in planning your finances. Here are the top 3 tips by Marsh Tincknell Accountants to help you manage your finances.
1. Write down your goals:
This is the first and most important tip when you want to plan your finances. Write down all your long-term and short-term goals that require you to spend money. Once you have your list of major goals, number them according to their priority and how soon you need to achieve them. Arrange them in order from the one you wish to achieve soonest to the one you want to achieve at a later date. For example, saving for retirement may be at the bottom of your list. This way, as you work on your short-term goals like reducing your spending, you are also able to work on your long-term goals slowly.
2. Create a financial plan:
This is one of the other important things to do to help you finance correctly. Your financial plan should have the steps to follow in order to achieve your short-term and long-term goals. For example, your plan may include steps like controlling your budget then coming up with a savings plan in order to get out of debt. This way, you are able to monitor how fast you achieve these steps towards reaching your long-term and short-term goals. When you see that you are taking too much time to conquer one step, you can then come up with strategies to ensure that you move faster toward your goal.
3. Create a budget and stick to it:
Having a budget is one of the most important tools to help you spend your finances wisely. This is because a budget acts as a boundary or restriction on the amount of money you are supposed to spend at a particular period of time. A budget also helps you to keep track of your spending. This helps you to evaluate and see where you are spending most of your money carelessly and cut down on that.
Conclusion:
Many people today have a problem with finances and how to manage them correctly. Three of the main problems that may lead to financial chaos is not having a list of the goals to be achieved, not having a financial plan and not having a budget. People who have these three things in place rarely experience stress due to the management of finances.
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It’s easy to think only the big things matter when you’re looking at your finances. Your choice of mortgage and how much student debt you carry tie up your money in major ways, after all. Their effects can be so significant that many people assume they can’t make any positive changes to their finances until they can renegotiate their mortgage or pay off their debt. But these people are forgetting the lesson of the butterfly effect. Though the flapping of a butterfly’s wings may seem insignificant, the air it displaces can set off a chain reaction that causes a hurricane half-way around the world.
If you’re ready to start improving your finances, don’t let the size fool you. You don’t have to wait until you can sort out the big things in your ledger. Even small financial choices can have a huge impact on your life. Take a look at this list of simple and small changes you can make to help bring order to your financial house.
Shop for groceries like a pro :
Your weekly trip down the aisles can lead to considerable savings if you’re organized. Maximize your savings at the supermarket by including these techniques every time you shop:
Make a list: Research from the University of Pennsylvania shows shoppers who use lists can save 23 percent on their grocery bills. How? Those that stick to a list are less likely to make impulse purchases that bloat their bills.
Shop generic: Recognizable brands often cost more money for no other reason than the label. Compare prices of generic items and make the switch.
Use coupons: Coupons strike serious cash off certain items, especially when you use them on top of existing sales. Certain retailers allow you to stack them, so you can redeem more than one coupon on a single item and double, triple, or quadruple your savings.
Price match: When half of your list is on sale at one grocery store, and the other half is on sale at another, you can cash in on both sets of promotions by shopping with a retailer that price matches competitor’s flyers. Though it will take some time at the till this strategy will save you the cost of driving around town to cash in on deals.
Bank differently :
How you deposit, withdraw, save, and invest can affect what’s sitting in your accounts. Slash unnecessary charges and drama from your life by adopting these new banking habits:
Open a no-fee checking account: Most banks charge you monthly fees if you can’t keep a minimum balance. You can skip these charges by transferring your funds to a bank that doesn’t place these restrictions on your accounts.
Stop using ATMs: Depending on where you live, you can spend $5 for the privilege of using an ATM. Let this post help you cut these charges out of your life by withdrawing from your bank directly.
Search out online solutions: Traditional banks often have complex barriers that delay or prevent you from getting a loan you need to pay a bill, causing you to miss deadlines and pay more in interest. Direct cash advance lenders like MoneyKeyaren’t bound by the same red tape in most US states, so getting a payday loan from MoneyKey.com is simple by comparison. They’ve eliminated many of the complexities bogging down conventional assistance, so you can get a necessary cash advance quickly when time is of the essence.
Shop with cash when you can: While mobile payments are more convenient, shopping with digital forms of cash can cause you to spend more. Try shopping with cash as much as possible, leaving credit cards and other e-payments for unavoidable purchases.
Though few of these tips are impressive on their own, their true significance lies in their cumulative effects. Make enough little changes for long enough, and your financial habits can result in considerable savings.
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2.4 million funerals take place in the U.S. every year. If you're not in the funeral business, this is a sobering thought.
When a parent dies, the grief and pain you are dealing with can often be compounded by financial pressures if you are named as their executor.
In a way, it is flattering to be named a parent's executor. It means they trusted your intelligence, patience, and fairness enough to appoint you the overseer of their property after they are gone.
In other ways, it is overwhelming to consider the number of debts, unknown assets, and contentious relatives you will need to keep a record of.
If you are unsure what to do when a parent dies and you are the executor, take a deep breath, pick up a pen, and begin to approach your responsibilities in an organized, measured way.
What to Do When A Parent Dies and You Are the Executor:
Right after someone dies, there is usually a period of chaos. During this time, the estate needs to be opened, and the executor is appointed to avoid surprises by debt collectors or the IRS. You may have already been appointed the executor in a will.
No one should begin to take or distribute assets yet.
As the executor, it is your job to decide whether or not the will should go into probate, which is the official "proving" of the will in court. If the estate is larger, or if there is some disagreement about the will, probate may be necessary before you can begin carrying out your duties as the executor.
When you go through probate, you will have to file papers with the local probate court, prove that the will is valid, and present the court with a list of debts and assets. You should also explain how they should be distributed. The probate process could take anywhere from a few months to a year.
If your parent set up a living trust, you won't have to go through probate. The person named as the trust's successor will be able to distribute assets according to the will without having to go through the courts.
Your overall responsibility as the executor is to make sure that all debts and creditors of the deceased are paid off. Then the rest of their assets can be distributed according to their expressed wishes.
An executor is different from a power of attorney, who makes decisions about life-sustaining medical treatments while a loved one is still alive. Once they have passed, the power of attorney is no longer valid.
If there are any dependent children or pets, you will need to be certain that guardians are appointed in accordance with the decedent's wishes. These are often complicated things to handle, you might want to enlist the services if an expert right away. Thomas Church, Florida Will Contest Attorney is one of the best Estate Litigation experts in USA.
Get the Right Paperwork:
Your first duty as the executor is to find your parent's will. It could be filed away with important paperwork or in the hands of their attorney. It is usually necessary to file with a probate court, even if it is determined that probate is not necessary.
If there is a will in place, you will receive letters testamentary, which is a legal document authorizing you as the executor to take control over the decedent's estate. If there is no will, you will receive letters of administration. You can then begin your work as an executor.
You should also be certain that a pronouncement of death has been filed. This is a letter filled out by a medical professional stating where and when the decedent died.
A death certificate should become available after the funeral. You can obtain it from your funeral home, county registrar, or health department. About 10-15 copies should be sufficient to cover your administration needs.
You will need the certificate to prove the situation to insurance, credit card, and mortgage companies. If you find you need more copies, they can be obtained from the Department of Vital Records.
It is important to begin keeping a list of assets and liabilities before liquidating assets, paying off debts, and distributing funds among beneficiaries.
Acquiring credit card statements, mortgage statements, vehicle registrations, a social security card, and copies of insurance policies will also make the process smoother.
You should be sure to punch a hole in the decedent's driver's license and passport to help prevent fraud.
Giles & Robinson, P.A. explains that an ancillary administration can take six to nine months to finalize.
Hire Some Help:
An estate attorney, like Verhaeghe Law, can help you avoid mistakes that could cost you money in the long run. A financial consultant can help with asset transfers. An insurance agent can assist with claims forms to help make sure beneficiaries are paid.
The costs of the funeral, as well as getting the decedent's affairs in order, are taken from the estate. Don't be afraid to ask for help to make sure the process goes smoothly and does not end up making you liable for problems that may arise.
Stop Payments:
The decedent's estate is responsible for any debts that arise after death. Heirs and beneficiaries are not responsible, although some feel a sense of moral responsibility to pay them off.
You should notify all credit card companies, government agencies, utility companies, and mortgage banks of the death. This will help you to avoid late charges, and accounts will be transferred to decedent status. Doctors and other health professionals who may be owed fees should also be notified.
Check the decedent's credit card statements and be certain to cancel any payments with "auto-renewal," such as those for magazine subscriptions, AARP, AAA, and clubs. You may want to wait a month or two before closing the decedent's primary credit card so that you can view the companies that need to be notified.
Be certain to contact the three main credit reporting agencies: Equifax, Experian, and Transunion, immediately. They can flag the decedent's account so no one will try to steal their identity. It is also a good idea to check back two months later to be certain no fraud has occurred.
You should be sure to notify Social Security so they will stop payments and you will not be responsible to pay back posthumous checks.
If your parent was employed at the time of their death, you will need to call their employer. You can find out about any payments due to them, death benefits, life insurance policies, and beneficiary benefits.
Pay Off Debts:
Keep a list of how much your parent owed to mortgage companies, credit card companies, car payments, etc. You may need to liquidate assets, such as selling houses or cars, to pay off these debts.
Check with a CPA to see if your decedent's taxes have been paid. Money from the estate can be used to pay any money owed to the IRS.
You will also need to file taxes for your parent from the day of the year they passed until the date of death. If the estate is large, there may also be state or federal estate taxes to pay.
Consolidate Assets:
The executor should open a separate bank account for ongoing bills, as well as incoming checks. Keep valuables safe in a safety deposit box.
You should hire an assessor to see how much their property is worth. It is your duty as the executor to maintain the decedent's property until it is sold or bequeathed to the proper beneficiary.
Distribute Assets and Maintain Healthy Communication:
After all known debts are paid, you can begin distributing remaining funds to the family as specified in the will. It is important to get and keep a signed receipt from each beneficiary after they are paid.
Many arguments and breakdowns during the asset distribution process happen because folks feel that they are being overlooked or marginalized. It is important to let them know what the timeline is so that they will know exactly what is being done with the funds and when they can expect to receive funds that are due them.
It is a good idea to take some time before making investments with estate funds, as grieving can be an emotionally overwhelming time for most.
Close the Estate:
You may be required to file a petition in court before distributing assets and closing the estate. As the executor, your duty is complete.
Take Care of Yourself:
Losing a parent can be one of the most confusing, disheartening times in an individual's life. If you are overwhelmed by the complications of what to do when a parent dies and you are the executor, be sure to enlist the help of qualified professionals.
By keeping detailed records, liquidating assets, paying off debts, and distributing assets, you can be assured that your parent's affairs have been handled properly and you can begin taking steps toward the next chapter in your life.
For more lifestyle advice, read our blog today.
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Insurance for funerals is a specialized form of coverage that addresses the inevitable event of one's passing. It's crucial in financial planning to offer financial security during emotionally challenging times. This article explores the significance of funeral insurance and how it operates, shedding light on various essential aspects for individuals and families.
Importance Of Funeral Insurance
Insurance is pivotal in financial planning due to its ability to address a fundamental aspect of life - preparing for the expenses associated with end-of-life arrangements. Funeral costs can be substantial, encompassing fees related to caskets, burials, memorial services, and legal matters.
These financial burdens can compound the emotional challenges that families face during a difficult period. This insurance serves as a solution to this predicament. Thus offering a safety net that ensures that no loved one has to face the burden of funeral arrangement expenses
How The Insurance Operates?
Understanding the mechanics of this insurance is vital for making informed decisions. Here's a breakdown of how it operates:
Choosing Coverage Level:
Insurance policies provide policyholders with the flexibility to select a coverage amount that aligns with their anticipated funeral expenses. These policies typically offer various coverage options to cater to individual needs. Hence, it allows individuals to tailor their coverage based on their preferences and financial circumstances.
Premium Payments:
To maintain the insurance policy, policyholders must make regular premium payments. The specific premium amount can vary based on age as well as the chosen coverage amount. These premium payments ensure the policy remains in force, ready to provide financial assistance.
Beneficiary Designation:
A crucial aspect of this insurance is the designation of beneficiaries. Policyholders specify individuals who will receive the policy's payout upon their passing. These designated beneficiaries are often family members or trusted individuals responsible for final expenses. Moreover, this designation ensures that the funds are disbursed to the intended recipients efficiently.
Lump-Sum Payout:
In the event of the policyholder's death, the insurance company disburses a lump-sum payment to the designated beneficiaries. This payout can be utilized to cover various expenses, including funeral costs, outstanding bills, or any other financial obligations that may arise. The flexibility of the payout allows beneficiaries to address the immediate financial needs that arise during this challenging time.
No Medical Exams:
This insurance is known for its accessibility. Unlike many other insurance policies, it typically requires no medical examination or extensive underwriting for approval. This accessibility means that individuals of varying health conditions and ages can secure coverage without the hassle of medical assessments.
Levels Of Coverage
The policies offer several levels of coverage, ensuring that people can find a suitable option that aligns with their needs and financial capacities:
Basic Coverage:
Basic coverage is an entry-level option, offering a minimal payout. While it can cover essential funeral expenses, it may not extend to additional costs or outstanding debts. This level of coverage is ideal for individuals seeking to alleviate the financial burden of a basic funeral.
Intermediate Coverage:
Intermediate coverage increases financial support by providing a more substantial payout. Policyholders with intermediate coverage receive a higher sum, offering greater assistance in covering funeral expenses and potential outstanding bills.
Comprehensive Coverage:
Comprehensive coverage represents the highest level of protection. It offers a substantial payout, accommodating elaborate funeral services and providing financial security for various expenses. Policyholders with comprehensive coverage have the peace of mind that even complex funeral arrangements are well-supported financially.
Customized Coverage:
Some policies allow for customization, allowing policyholders to tailor the coverage amount to their specific needs. This customization ensures that the policy aligns precisely with the anticipated funeral expenses, eliminating unnecessary costs.
Benefits Of Funeral Insurance
The insurance offers numerous benefits that extend beyond financial support:
Financial Protection:
The primary benefit of this insurance is the assurance that loved ones do not bear the financial burden of funeral and final expenses. By providing a lump-sum payment, this insurance ensures that the immediate costs associated with end-of-life arrangements are covered. Thereby offering peace of mind to both policyholders and their families.
No Medical Exams:
Its accessibility is a significant advantage. Policy approval typically does not hinge on the results of medical examinations or extensive underwriting. This feature makes it a viable option for individuals with varying health conditions and ages, ensuring that coverage is accessible when needed.
Quick Payouts:
The policies are designed to offer timely financial assistance to beneficiaries. Claims are processed promptly, often within days of submission. This expeditious processing ensures that beneficiaries receive the necessary funds without delay, allowing them to address immediate financial obligations.
Peace of Mind:
Knowing that final expenses are covered provides a significant source of peace of mind to both policyholders and their families. It eliminates the stress of managing these financial obligations during an emotionally challenging period. It allows loved ones to focus on grieving and honoring the memory of the deceased without the added worry of financial burdens.
Support for Loved Ones:
It is a practical way to support loved ones during a challenging time. It ensures the proper management of your finances. Thereby allowing family members to concentrate on processing their grief and commemorating the individual. By alleviating financial concerns, it enables a smoother transition during this emotionally charged period.
Customizable:
Many policies offer customization options, enabling policyholders to choose coverage amounts. Most of them precisely match their expected expenses. This customization ensures that your policy is exactly what you want. Thereby providing the necessary financial support without excess coverage or unanticipated costs.
Considerations When Choosing Funeral Insurance
While it offers many advantages, several vital considerations are essential for individuals contemplating this coverage:
Premium Costs:
The policies come with varying premium costs. Individuals should select a policy that aligns with their budget, considering age, coverage amount, as well as the insurance provider. Evaluating premium costs ensures that the chosen policy remains sustainable in the long term.
Coverage Limits:
Understanding coverage limits is crucial to ensure the selected policy adequately covers anticipated expenses. Some insurance policies may have a maximum payout amount. Individuals should verify that the policy's limits align with their financial expectations for funeral and final expenses.
Waiting Periods:
It's essential to be aware of waiting periods associated with these insurance policies. Many policies have waiting periods before full coverage takes effect. Policyholders should understand the duration of these waiting periods and how they may affect potential claims.
Beneficiary Designation:
Effective communication with designated beneficiaries is vital. Policyholders should ensure that their chosen beneficiaries know their roles and responsibilities in the claims process. Clear communication helps expedite the disbursement of funds to the intended recipients.
Exclusions:
Reviewing policy exclusions is a critical step in understanding coverage. These insurance policies may exclude specific circumstances or pre-existing conditions. Individuals should know these exclusions to avoid surprises when filing a claim.
Conclusion
Funeral insurance is a vital component of financial planning, offering peace of mind and financial protection for policyholders and their loved ones. Providing a safety net for funeral and final expenses ensures that the financial burden is free from the shoulders of grieving families.
Understanding how this insurance operates and carefully considering coverage options empowers individuals to make informed decisions that benefit themselves and their families during challenging times.
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