Tag Archive | "financial decision making"

8 Times You Shouldn’t Cover the Financial Burden and What to Do

No one ever said that being a responsible adult was easy. And one of the most difficult things to do is to be financially responsible. Sometimes, life throws us a curveball, and we have to cover the financial burden for someone else. This blog post will list eight times when you should not cover the financial burden and what you can do instead.

Photo by Mathieu Stern on Unsplash

When You Can’t Afford It

This is probably the most obvious one. If you can’t afford to cover the financial burden, then don’t. It’s not worth going into debt for someone else. There are other options that you can explore (which will be discussed later).

When It’s Not Your Responsibility

Just because you have the means to cover someone else’s financial burden doesn’t mean you should. If it’s not your responsibility, then don’t take on the burden. There are other people who can and should help out in this situation.

When It’s Going to Cause Strained Relationships

If covering the financial burden is going to cause strained relationships, then it’s probably not worth it. It’s important to think about how this will affect your relationship with the person in the long run. If it’s going to cause more harm than good, then you might want to reconsider.

When You’re Not Comfortable With It

If you’re not comfortable with covering the financial burden, then don’t do it. It’s important to be honest with yourself and with the person who is asking for help. There’s no shame in saying that you’re not comfortable with this situation.

When It’s Going to Put You in a Bad Position

If covering the financial burden is going to put you in a bad position, then you shouldn’t do it. This could be a bad financial decision that could affect your credit score or your ability to pay your bills. You should always think about how this will impact you before making a decision.

When It’s Not in Your Best Interest

If covering the financial burden is not in your best interest, then you shouldn’t do it. This could be a situation where you’re being taken advantage of or where you’re not going to get anything out of it. You should always think about what’s best for you before making a decision.

When You’re Not Sure

If you’re not sure about covering the financial burden, then don’t do it. It’s important to be confident in your decision. If you’re not sure, then it’s best to wait until you are before making a commitment.

When Other Actions Affected Your Health

Your health should always be a priority. If another action causes your health to be in danger, do not put yourself at financial risk to cover it. For example, if you got cancer due to AFFF exposure, you shouldn’t have to worry about the cost of treatment. The government should be taking care of that for you—research good Aqueous film forming foam lawyers to help with the process. 

These are just a few of the times when you shouldn’t cover the financial burden. There are other instances where it might not be a good idea, but these are some of the most common ones. If you’re ever in doubt, it’s always best to err on the side of caution and say no. Covering someone else’s financial burden is a big responsibility, and it’s not something that should be taken lightly.

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Sort Out Your Finances During Lockdown

We may be in the middle of a pandemic right now, but there are certain elements of life that continue on whether we want it to or not. We still have to pay our mortgages, we still have to pay our bills and we still have to work to earn money. During lockdown, it’s hard to think beyond the worry of what’s happening with Coronavirus and how the world responds to that, but you have to if you want to remember to pay your bills on time!

Your finances can still do with a declutter – even now – and it’s the perfect time to get it sorted. You are stuck at home, and while you may be working, you still need to be on top of things. So, let’s take a look at how you can look after your finances in lockdown. 

Coins Inside Jar

Image source: Pexels

  • Look At Your Payments. Right now, your local gym may be shut. So, why are you still paying for it? You need to look at your outgoings right now and see whether or not there are things that you can cancel or freeze while you can’t use them. Everything from the gym to a luxury movie theatre pass can be frozen while you can’t use them, and you can save some cash this way.
  • How’s The Interest Looking? If you currently have a high-interest savings account, how is it doing? How much are you earning with it? You need to look into it and make sure that you aren’t being cut down. Check around and see whether you can get a better interest rate. Right now, you’re likely spending less and able to save more, so a higher interest account is a great idea.
  • Get Receipts Ready For Tax Time. You can get help with your taxes from websites like https://www.taxreturn.com.au/tax-file-number-guide/, but now is the perfect time to gather your receipts so that you can get money back if you’re owed it. If you’re organised now, you can be ready for when tax season kicks in.
  • Get Out Of Your Overdraft. If you have the chance to pay off your overdraft now, do it. You are going to need to have your accounts running properly when the world kicks back in, and if you can pay off your overdraft you’re going to be in a better financial position. 
  • Haggle An Energy Deal. You’re at home a lot more right now, and so the last thing that you want to do is pay out hundreds for your heat and light while you’re stuck. Speak to your energy provider and see if you can make some savings during the pandemic. Given that it’s a hard time for everyone right now, they may be able to offer you a deal so that you pay less!

Lockdown may not be the most fun time, but it’s a good time to start looking at your finances and getting them straightened out. Life is on pause: it’s time to rethink your money!

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Things To Consider When Writing Your Will

Death isn’t most people’s favourite conversation topic. However, addressing your will is imperative. To ignore this duty would heighten the risk of leaving your family in a terrible financial position if you were to pass away. It is not only the money that matters either. You have to think about appointing a guardian for your minor children as well. Don’t you want this to be in your control? All things considered, to say writing a will is imperative is a monumental understatement. The necessity of this cannot be put into words.

Image Source: https://bit.ly/2Ow1y6YWriting a will can be a lot more difficult than imagined. There are so many different aspects you must consider. As mentioned, appointing a guardian for any minor children is imperative. It is always recommended to identify a first and second choice. You should explain why you think the adult in question will provide stable and continuous care. You must also state the relationship between the child and the adult.

Another role you will need to identify is the beneficiaries of your will. From properties, to money, to smaller assets; you need to embark on thorough estate planning. Most people tend to leave their assets to their partner and their children. Don’t neglect the ‘what if’ possibilities. What if you and your partner passed away at the same time? What if you are remarried – Do you want your assets to go to your children rather than your new spouse? Also, a lot of people don’t realise that their debt is deducted from their estate. If you don’t want your kids to miss out, use a credit card monthly interest calculator and put together a debt repayment plan so you can get this paid off sooner rather than later.

In addition to the points that have already been mentioned, you will also need to decide on a personal representative to execute your wishes. The word ‘representative’ is imperative here. You have to trust the individual’s judgement. In fact, your judgement will be in question when writing your will as well, in the sense that you must be of sound mind before you begin to write it.

Knowing what not to include in your will is just as important as knowing what to include. Some of the things that cannot be incorporated are certain types of property, such as; joint tenancy property and property in a living trust. Many individuals are tempted to leave their funeral instructions in their will. This is ill-advised. In most cases, the settlement of your estate and alike will not be handled until after your funeral.

It is also worth noting that your will may need to be updated on one occasion or more. A lot of people write their will and then they put it to the back of their mind and never think about it again. However, circumstances can easily change. What if you end up getting divorced? What if the person you identified as a guardian is no longer suitable? What if your finances have changed? Updating your will is imperative.

Finally, professional aid is always recommended when it comes to writing a will. This will guarantee that everything is handled the right way so that your family and loved ones are protected in the event of your death.

Posted in Family, Health & Lifestyle, MoneyComments (3)

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