Erin H, Author at Beating Broke

5 Facts to Keep in Mind About Estate Planning

July 17, 2023 By Erin H Leave a Comment

Estate planning is a critical aspect of personal finance that allows individuals to protect their assets while providing for their loved ones and ensuring their wishes are honored upon death. Regardless of wealth, estate planning is an important process that everyone should undertake. There are many considerations to keep in mind when embarking on estate planning.

1. Seek Professional Guidance

Estate planning and personal finance decisions are often complex. As a result, they are often best addressed with the guidance of experienced professionals. Navigating the finer details of estate planning requires expertise in legal, financial, and tax matters.

When you seek professional guidance, you can feel confident that your estate plan is thorough. It will also be compliant with all laws and regulations. Your estate plan will also be tailored to your specific circumstances. Professionals such as estate planning attorneys, financial advisors, and tax specialists can provide valuable insights and help you make informed decisions to protect your assets and fulfill your goals.

2. Keeping Your Plan Current

Once you have created a comprehensive estate plan, it is recommended that you update your estate plan once every five years unless significant life events occur, such as marriage or relocation to another state. By maintaining an up-to-date estate plan, you’re ensuring that it reflects changes in your circumstances. This is also the best way to make sure that your estate plan is in alignment with your wishes.

As your personal finance outlook changes, your estate plan may also need to change. By revisiting your plan regularly, you can ensure that it remains relevant, addresses any new considerations, and adapts to the evolving needs of your family and beneficiaries.

3. Estate Planning is for Everyone

Approximately 77% of American adults believe that estate planning is important for everyone, regardless of their wealth, according to LegalZoom. Estate planning goes beyond wealth preservation. It is an important strategy to protect your assets and provide for your loved ones. You’re also able to have control over the distribution of your estate.

Regardless of the size of your estate, estate planning allows you to ensure that your wishes are respected and reduces potential conflicts among beneficiaries. As your personal finance situation changes, your estate plan can change with it.

4. Estate Tax Exemptions

You are exempt from federal estate taxes as long as your estate is valued at more than $5.43 million (or $10.86 million for a married couple). When you have an understanding of estate tax thresholds, you can create a more effective estate plan.

By staying within the exemption limits, you can reduce the potential tax burdens on your estate. This also means that you’re able to maximize the amount passed on to your beneficiaries. However, it is important to consult with a professional to comply with tax laws and make the most of any strategies that provide savings on taxes.

5. Common Pitfalls to Avoid

There are some common pitfalls in estate planning. They often include inadequate beneficiary designations, failure to update documents, and poor communication among family members. To avoid these problem areas, a comprehensive estate plan should include updated beneficiary designations and regular document reviews.

You should discuss your wishes openly and transparently with your family. This helps prevent misunderstandings and allows your estate plan to be executed smoothly. Estate planning is a constantly changing process. It would be best if you revisited it regularly as your life changes.

You must invest time and effort into effective estate planning. This allows you to have financial security, protect your legacy, and provide peace of mind for yourself and your loved ones. Most importantly, you want to review your estate plan regularly.

How to Prepare for Major Expenses Associated With Your Home

July 13, 2023 By Erin H Leave a Comment

Home expenses can sometimes hit us when we least expect them, and when increases happen during a period of a struggling economy, this can make things worse. It’s always a good idea to have some tips for spending your money wisely, especially when looking to curb home expenses and find a balance.

Spending Too Much on Furniture

According to RentoMojo, the estimated lifespan of a typical sofa is 2,958 days. Can you just imagine this low lifespan? Instead of buying cheap, invest in a more premium sofa, which can help you save in the long run. Yes, you’ll have to pay more, but it will cost you less later. Your couch will be more durable for the long haul and save you money from having to keep replacing the less robust and cheaper sofa each time it gives in and doesn’t work the way it should anymore.

Save in Advance

Whether you need to repair your roof, replace it, or do any other major thing on your property, rather save ahead of time. Putting away the full amount for an expensive project will dent your cash flow for the month. If you set aside an allocated amount to save for maybe three years (depending on your money management and budgets), then you can accrue the money for the project without feeling it directly.

Saving ahead is unlike when you’re paying off credit. No additional interest is added, so you can save until you’re done and ready to start the project. Modernize suggests that, on average, American homeowners can expect a roof replacement cost to fall somewhere between $5,200 and $12,085. This amount also depends on things like materials and location, as prime locations are often more expensive for everything, including hiring contractors.

Set Up a Fixed Savings Account

Major and minor home renovations can cost a lot, depending on how much you have done. Arrange with your bank that you can create a fixed savings account that is only accessible after a set period. In this way, you won’t feel the urge to tap into it and utilize it for other expenses. You can now set aside money dedicated to your home renovation or another major project to do. It’s said that an estimated 22% of homeowners will spend between $5,000 and $15,000 on home improvement projects. This figure is steep but saving will surely help.

Include Major Expenses in Your Budget

It’s important to have money to save, and if you haven’t started, then assessing your current budget and tweaking it to start adding a set amount for savings each month helps. At the same time, by altering your budget, think about the costs you’re currently paying and what you could do without, and it won’t be straining the household. You may want to cut back on some additional expenses to accommodate a compulsory saving feature each month until you have completed the project that you’re saving for.

Do You Need Additional Income?

You may need to compensate your money each month and might need to take on a second job or something to help increase your current income. If you have a major expense related to your home, you can look into ways to make extra money. Perhaps your partner enjoys baking and wouldn’t mind making baked goods and selling them for an additional income. You may have a food truck business that you run on the weekends to add to your daywork income during the week. You can also sit dogs, kids, houses, and many other easy things that won’t need much capital to get them off the ground

Are you feeling pumped to get this saving feature underway so you can get cracking on your home expense project? Once the project you’ve saved for so long is completed, you will be super proud and happy knowing that this is something you successfully achieved.

5 Reasons to Embrace Social Media

July 6, 2023 By Erin H Leave a Comment

Social media have become an integral part of our lives. With its ever-growing popularity, it’s hard to ignore its impact on various aspects of our lifestyle. While there are concerns about privacy and addiction, it’s essential to recognize the positive aspects that social media bring. Below are five compelling reasons why embracing social media can benefit individuals and businesses.

1. Connecting People and Communities

Social media platforms have revolutionized how we connect with others, truly making the world a global village. While the loss of smartphones is rampant, people are still finding ways to stay connected on social media. Forensic Discovery reports that only 7% of 70 million smartphones lost annually are recovered. The omnipresence of social media allows individuals to stay connected when their physical devices are lost or replaced.

Through platforms like Facebook, people can easily find and reconnect with long-lost friends, join interest-based communities, and engage with like-minded individuals worldwide. The ability to bridge geographical distances and foster connections is one of the most significant advantages of social media. This has had a huge influence on all aspects of human interaction.

2. Business Growth and Marketing Potential

Social media platforms are a goldmine for businesses, impacting their marketing potential and lifestyle. With Facebook dominating the social media landscape with about 65% of user shares, according to BackLinko, it’s clear that the platform holds immense marketing and lifestyle benefits. According to Hootsuite, social media marketing allows businesses to reach a vast audience, increase brand visibility, and engage with customers, shaping their lifestyles. By leveraging the power of social media, businesses can expand their reach, drive website traffic, generate leads, and ultimately boost their sales and revenue while influencing how people live and interact with each other.

Information Sharing and Awareness

Today, staying informed is vital to maintaining a well-rounded lifestyle. Social media serve as a dynamic information hub, providing users with real-time news updates, trends, and global developments, all of which contribute to shaping their lifestyle choices. According to statistics from Pew Research Center, 2018, the average adult possesses over 130 online accounts, highlighting the significant role of social media in curating and delivering tailored information based on individual interests and preferences.

Beyond convenience, social media also play a crucial role in users’ lives during emergencies, natural disasters, or social movements. It facilitates the rapid dissemination of critical information, empowering individuals to stay informed and make decisions that align with their lifestyle values and priorities.

Exposure

Social media platforms have become vibrant arenas for creativity and self-expression, influencing personal connections and lifestyle choices. They serve as virtual canvases, empowering individuals to showcase their talents, share thoughts, and express themselves across diverse artistic mediums, such as writing, photography, music, and visual arts. With platforms like Instagram, YouTube, and TikTok, users can cultivate an online presence, gain visibility, and forge communities centered around shared interests, ultimately shaping their lifestyle and creative pursuits. Social media are a powerful amplifier, enabling individuals to reach broader audiences, establish meaningful connections, and explore professional opportunities, impacting their artistic endeavors and how they live.

Personal and Professional Growth

Engaging with social media can offer numerous personal and professional growth opportunities. Platforms like LinkedIn provide networking, job searching, and professional development avenues. Individuals can expand their knowledge, gain insights, and discover new career prospects by connecting with industry professionals and participating in relevant communities. Besides, social media foster continuous learning through online courses, webinars, and educational content shared by experts in various fields. It’s a gateway to personal growth that enables individuals to acquire new skills, exchange ideas, and stay updated with industry trends.

While social media have their fair share of challenges, it’s essential to recognize their positive impact on our lives. Their benefits include connecting people and communities, facilitating business growth, promoting information sharing, nurturing creativity, and fostering personal and professional growth. By responsibly using social media and leveraging their potential, individuals and businesses can tap into a world of opportunities, connectivity, and engagement that were once unimaginable.