You will be shocked at what the itty-bitty expenses add up to. Take the total you spent on just one unnecessary item for the month, multiply it by 12 for months in a year and multiply the result by 5 to represent 5 years.
That is how much you could have saved plus drawn interest on in just five years. That, my friend, is the very reason all of us need a budget.
You say you know where your money goes and you don’t need it all written down to keep up with it. I issue you this challenge. Keep track of every penny you spend for one month and I do mean every penny.
The prospect of dying is not a favorite subject to dwell on but it is inevitable and it is worth planning for the eventuality. Estate planning is making a plan in preparation for your death. You might like to think estate planning is only something to plan for as you get older or when you have an estate of significant value. Even at younger ages than retirement and responsible emergency preparedness, people die unexpectedly and leave their spouse and family prematurely unsupported.
Coming up with a plan for the disbursement of your assets after death can be very detailed depending on your own personal and family situation. It can quickly get very complicated. However, it is worth spending a little time now to get at least something simple in place and it can always be changed and evolved as time permits and circumstances change.
Well before retirement proper asset protection can mean your net worth will quickly accumulate in value. Life insurance for example may be a substantial sum.
Wills
The most basic estate planning document is your will. Without a will the government will take control of your assets and distribute them at their discretion. Creating a basic will that is a legal document, signed by you, witnessed and notarized, is an easy first step to outline your wishes of how and where your assets and property are disbursed. Continue reading “Estate Planning” »