Category Archives: Uncategorized

How to Financially Prepare for a Divorce

Divorce is a difficult and tragic time in the life of any couple. However, there are times when things happen, irreconcilable differences occur, and the only best recall is divorce. When divorce is the best option, it is very important to follow through on it. Divorces are generally regarded as stressful and draining, although, these pains can be minimized to a certain extent. The proper and thorough financial planning is both necessary and can save a lot of drama, misunderstandings, and confusion. Preparation can also come in handy in the event that one’s spouse proves to be greedy, dishonest, or otherwise disingenuous.

Collect All Documentation Relating to Financial Affairs

Gathering all financial-related documents in very important when preparing for a divorce, according to Nerd Wallet. After all, financial preparation is incredibly challenging, if not impossible, without having full knowledge of one’s financial state and monetary contributions which have occurred throughout the marriage. Therefore, it is absolutely imperative to collect and review documentation such as statements for investments, checking, and savings accounts, income taxes, pay stubs, credit card statements, etc. Having the aforementioned records can prove to be quite useful, especially if uncertainties or untrue allegations about money arises. Collecting documentation is one of the very first steps regarding financial preparation for a divorce.

Save and Accumulate Funds

Divorce is an inherently expensive and costly endeavor. Therefore, saving and putting aside money is absolutely imperative. There are countless fees, costs, and unexpected occurrences which are almost guaranteed to pop up in the midst of a divorce. This is why so many people save money and put aside funds so that they are not caught off guard by something unexpected. Protected furthermore states that consistently stashing aside money over time can significantly ease the burden of paying attorney fees. No matter what, saving funds is always a paramount aspect of financially preparing for a divorce.

Try to Work with Your Soon-to-Be Ex-Spouse

Although this may seem ironic and counterintuitive in the midst of a divorce, working with one’s soon-to-be-ex can make a phenomenal difference and save both parties unbelievable amounts of headaches and money. An amicable or cordial divorce can mean the difference between proceedings which take a few weeks or several months. Unfortunately, working with the other party is not always an option. Some spouses can be incredibly difficult or vindictive, especially depending upon what happened in the marriage and how events played out. Nevertheless, working together is always worth a shot.

A Final Word

Financial planning for any divorce is always the best course of action. However, there are many expenses and fees which are simply unavoidable. Divorce creates a difficult and often stressful environment, regardless of how prepared one or both parties may be. Sometimes, the very best forms of preparation simply involve having an awareness of all financial aspects and putting money aside to be able to effectively cover any associated monetary costs.

Consulting a financial adviser can also come in handy when planning for divorce.

Authored by Gabrielle Seunagal

How to Financially Plan for a Move

At some point and time in most people’s lives, they will be ready to pack up and move. This can happen for a variety of reasons. Sometimes, they may have received a job promotion or relocation. In other cases, a family may be ready for a new beginning or simply want to be closer to relatives. Nevertheless, there are countless motivators which can cause people to move across the state, country, or even across the world. However, financial planning for a move is so important and can save an unbelievable amount of troubles and headaches down the line. After all, preventative maintenance is always better than damage control.

Be Aware of All Associated Expenses

Relocating is, by no means, inexpensive. Therefore, Quicken affirms the importance of having an awareness of how much it will cost to move furniture and other items. Sometimes, movers opt out of relocating their furniture and simply chose to sell it and purchase new furniture once they’ve arrived at their new home. In many cases, moving furniture and other large items is more expensive than simply replacing it. There are many other costs associated with moving, such as new rent, utilities, transportation, and the overall expenses of living. Anyone who is even thinking of relocating should be aware of all costs before proceeding any further.

Save Money

Similarly to be aware of moving expenses, saving money is one of the most critical steps of financially planning for a move. Many people put aside funds months, if not years, ahead of time to ensure full preparation for their relocation. Doing this can save many problems and moreover create a sense of security. The reality is that the costs of moving add up extremely quickly. When saving, people should always have extra money in addition to what will cover their moving expenses. This particularly comes in handy in the event of any unforeseen emergencies or other occurrences. Anything can happen at any time and there are few things worse than having a move be delayed due to a lack of funds.

Update Critical Information

With all of the financial costs associated with moving, there are a few more matters which must be tended to before completely settling in. These matters involve updating critical and personal information such as ongoing bills, bank accounts, and credit card accounts, according to Smart About Money. Also, upon moving, each person will need to re-register their car and receive a new drivers license. Both of these things can be done at the local DMV, although there are usually minimal fees associated with the aforementioned updates.

A Final Word

Moving is a very exciting time in anyone’s life. There are many benefits and opportunities which can come from relocating to a new place. However, by being aware of associated expenses, saving money, and updating critical information, each person will be on the right track to a smooth and stress-free move. Like all things in life, moving across the state, country, or world certainly requires careful degrees of thought and preparation.

Authored by Gabrielle Renee Seunagal

How to Financially Prepare for a Funeral

Funerals are known for being not the happiest of events. However, the unfortunate reality is that, at some point, each individual will most likely have to deal with the passing of a relative, friends, or loved one. Therefore, financial planning for the funeral process is so important. Not only does it cut back on stress, but it also eliminates financial burdens or unexpected emergencies which can make the grieving process even more worse and traumatic. This is why financial preparation for a funeral is absolutely paramount. Preventive maintenance is always better than having to do damage control at the very last minute.

Pay for the Funeral Ahead of Time

Reports from U.S. News affirm the shockingly low amount of people who simply pay for their funerals before they die. Nobody likes to think of death, but the reality is that all of us will die at one point or another. However, there are various options for those who have the financial means to pay for their funerals before their passing. Many individuals have paid for their funerals via insurance policies, 1035 exchanges, and trusts with monthly payment plans. Regardless, there are various options for individuals who wish to cover all expenses which will be associated with their funerals.

Create A New Personal Savings Account

Not everyone can or wants to put aside hundreds of dollars per month into a payment plan for their forthcoming funeral. Thankfully, there are other alternatives regarding financial preparation for a funeral. One of the simplest ones includes simply creating a new personal savings account and putting aside an agreeable amount of funds on a consistent basis. The account can also be set up with a “payable-on-death” trusted beneficiary. This ensures that the funds which have been put aside are actually used for their funeral and not some other purpose or expense.

Purchase Life Insurance/Set Up Financial Power-of-Attorney

Additional effective means of financially preparing for a funeral include purchasing life insurance and setting up a financial power-of-attorney to make decisions regarding money after one’s passing. Not only does this avoid any confusions or uncertainties regarding who is in charge, but life insurance moreover comes in handy if the deceased has certain debts which they failed to pay off before their passing, affirms USA Today. Obviously, these are matters that nobody likes to think of, but they are very important and worth planning for. Effective plans are much easier to make ahead of time, versus in the middle of the grieving process.

People who have further questions about preparing for their funerals can also seek out the aid or advice of a financial adviser.

A Final Word

At the end of the day, each person owes it to themselves and the ones who care for them to do as much planning for their funeral as they possibly can. Not only does this make matters easier for all parties involved, especially during the grieving process, but it furthermore shows a degree of respect to those who are closest to us.

Authored by Gabrielle Seunagal

How to Financially Plan for Purchasing a Home

Home ownership is a huge step and can be very exciting and nerve-wracking at the same time. Many individuals dream of the day that they will purchase their first home and enjoy all the perks and amenities of doing so. However, in order for the process of purchasing a home to be stress-free and as smooth as possible, it is very important for the soon-to-be homeowners to engage in some very precise and careful financial planning. Home ownership is not something to be rushed into. It is very important for the buyer to be financially prepared and comfortable with the decision they are making. Thankfully, there are some easy steps that one can take as they financially plan to purchase a home.

Consider Your Debt-to-Income Ratio

Before most people are able to purchase a home, they must first consult with a lender of sorts to see if they qualify for a loan. Nine times out of ten, an individual’s debt-to-income ratio will significantly impact whether or not the lender is comfortable with granting a loan to the aspiring homeowner, affirms Realtor.

In layman’s term, a debt-to-income ratio takes an individual’s debts and compares the amount to their income. In the best cases, one’s income outweighs any debts which they might have. After the lender assesses the individual’s debt-to-income ratio, they will determine whether or not the individual qualifies for a loan. If they do, the amount of money which they can borrow will also be determined by the lender.

Nine times out of ten, a 41% to 43% debt-to-income ratio is the highest that lenders will permit. Therefore, this is a very critical financial aspect that each individual should be aware of prior to moving to purchase a home.

Budget and Save Money Accordingly

There are countless expenses associated with homeownership. Many of these fees include, but are not limited to, repairs, home insurance, mortgage, maintenance, upgrades, and more. Of course, the specific numbers of the aforementioned expenses will vary from person to person. The amount of the allotted loan, the cost of the home, and various other monetary numbers will depend on the number of funds which need to be saved.

However, budgeting and saving money accordingly is always important, especially when one is preparing to make such a huge purchase. The proper financial planning saves people so much stress and grief that often comes along when one’s ducks are not in a row.

A Final Word

Purchasing a home is often a complex and very involved process. In addition to taking debt-to-income ratio into account and budgeting/saving accordingly, many people choose to contract the services of a financial advisor before they move forward with purchasing a home. While each individual can make their own financial moves and decisions, sometimes working with a professional can provide some added insight and help with the decision making process.

At the end of the day, any person who is ready to purchase a home deserves a smooth and stress-free process!

Authored by Gabrielle Seunagal

 

How to Financially Plan for a Startup Business

As the world of work changes, more and more people are taking steps to go into business for themselves. Sometimes this is done via freelancing, the gig economy, or simply by launching a startup company. However, making the right moves when launching a startup business is absolutely imperative and can be the determining factor in success or failure. One of the biggest and most common mistakes made by aspiring entrepreneurs is the failure to engage in full financial preparation. Thankfully, there are a series of steps that each person can take as they work to create or get their startup business off the ground.

Write an Excellent Business Plan

According to reports from Inc, having an understanding of the financial section of a business plan is paramount for any startup. This includes taking note of matters such as accounting, cash flows, profits/losses, etc. Essentially, the purpose of a business plan is to serve as a guide for how the entrepreneur will run his or her own business. Without a business plan, it is impossible to assess the structure of the startup and determine what is needed in order to turn it into a success.

Unfortunately, many entrepreneurs who are new to the world of business and startups remain unaware of how to write business plans. In these particular cases or situations, hiring a professional or accountant to help one come up with a business plan can be wise. Even though the added fee of doing so may seem initially scary, it is a worthy investment. The fact of the matter is that anyone who is serious about success and launching their startup needs to have a clearcut business plan. It is the only way. Going forth without one is a virtual guarantee for disaster.

Determine How to Manage the Day-to-Day Operations

Financial planning for any startup business is all well and good; however, management of the day-to-day operations is equally as critical. As noted by Startup Grind, the ins and outs of accounting play a very big role in whether or not one succeeds or fails in business. Thankfully, there are a variety of apps which can help with day-to-day tasks such as creating invoices and estimates, tracking transactions, generating receipts, managing payroll, pitching to investors, and more. The list, quite literally, goes on and on.

Some of the available apps to manage the aforementioned tasks (and others) include PlanGuru, Wave, FileThis, and CalcXML.

A Final Word

The intricate and required financial planning that comes with building a startup business should never serve as a deterrent or a cause of discouragement. While getting starting as an entrepreneur can be difficult in the beginning, the merits and rewards which come later are indescribable and immense. As automation and artificial intelligence begin to emerge into society, business ownership and self-employment will be some of the most lucrative ways to build a life and ensure financial and job security.

Putting in the work now ensures that entrepreneurs are able to reap the benefits later.

Authored by Gabrielle Seunagal