by Elisabeth Donati | Dec 9, 2017 | Financial Articles for Adults/Couples, Financial Education Articles for Women, Financial Literacy, money lesson, What you can do
Note: This post was written the week of the Thomas Fire in Ventura/Santa Barbara Counties in California.
This week I have been forced to discover what I value in life, aside from life itself and the lives of people I love (and this includes my dog, Jasmine).
While it was a coincidence, I was on a little week-long retreat in a town about 200 miles north on the coast in Cayucos beginning Friday, the 1st, when the Thomas Fire started in Ventura the following Tuesday. The second coincidence is that my girlfriend, Marilyn, was scheduled to come up that Tuesday…the same day she had a voluntary evacuation from her home in Ventura not less than a mile from the front of the fire!
But coincidences aside, when my boyfriend realized the fire was getting way too close to our home in the foothills of Carpinteria (at the edge of the wilderness no less), he quickly drove home to see what he could do to secure the house and pack up some of our ‘stuff.’
As I’m making a list and texting it to him, it was interesting to note what I valued. Besides the usual files for this and files for that, I wanted 3 paintings that meant something to me and get this…I wanted my clothes.
To heck with the kitchen stuff or the rest of the paintings or anything else, I just really like the clothing I have collected the past 10-15 years. Why? Well, that came with a bit of inquiry but I realized it was because I like to be comfortable and I don’t find most clothing comfortable.
Hence the standard Elisabeth Dress Code: tights, white v-neck men’s t-shirt from Costco and a flannel shirt. Anyone who really knows me knows that most of the time I’m not too far from one of my flannel shirts.
So…he got my clothing, at least most of them. A few sweatshirts hid behind the door which is just fine with me since I already had my favorite tie-dye one!
In addition, he grabbed my favorite (and valuable) Thomas Kinkade paintings and the very first painting I ever bought when I was 25ish.
Deciding what to leave and what to take
I suppose the only way to really know is to ask yourself, “Would I miss this so much I’d never get over it?” Or, “Is the meaning I put on this item worth taking up some of the limited space in my vehicle?” Or, “If this item is destroyed, is it replaceable and if it isn’t, would I be able to function in my business, personal life, etc., without it?”
If the answer is YES to any of these, and you still have room in your car, then you probably should take it.
Also, just as I did, do a little intellectual digging to find out what’s under what you value. In my case, it’s comfort and having choices when it comes to what I put on my body. For me, it’s not about style…I couldn’t care less about styles…it’s literally about comfort.
Finding What You Value
The best thing to do is to have these conversations with yourself and the rest of your family and create a list of the things you’ll grab in an emergency but please do this BEFORE there’s an actual emergency.
When I asked my boyfriend if he grabbed a certain thing, he’s not always sure. Why? Because he was scattered, stressed and little scared of the fire encroaching. And I don’t blame him! I was the same way and I was 200 miles north!
OK, turn off your email, put away Facebook, gather your family and walk around your home to determine what you really value and get that list made pronto (if you don’t already have one that is). I promise, if there’s an emergency in your future, you’ll be so glad you did!
Just something else to think about…
by Elisabeth Donati | Dec 5, 2017 | Financial Articles for Adults/Couples, Financial Literacy, Financial Literacy Articles for Parents, Financial Literacy Articles for Teachers, money lesson, What you can do
Why we buy…it’s an interesting question, especially in our America the Great Consummerland.
There is a simple answer and a detailed answer.
The simple answer is “because we like to feel.”
The detailed answer is, well, a little more complicated but here goes…
We buy stuff, called piddlyjunk in our programs, because of how ‘we think’ a certain thing will make us feel. Let me explain…
Let’s say you’re wandering through your favorite clothing store, rummaging through the dresses, and you come across the perfect little something for the office party you’re going to next week. Stop and think about what happens to you emotionally.
You see the dress, something inside you immediately sees how the dress can help make you feel a certain feeling that you’ve been wanting to feel:
- Liked
- Sexy
- Appreciated
- Desirable
- Strong
- Capable
- In charge
- And the list goes on.
Whatever it is about you that you don’t feel enough of, is often exactly the emotion that you’ll feel when you see something that ‘you think’ will make you feel the thing you’re missing (i.e., bulleted points above). I hope I didn’t lose you there. LOL.
For a fabulous list of 100 reasons why people why stuff, please read this blog (when you’re done here that is!): http://copytactics.com/why-people-buy-stuff
The interesting thing about consumerism is that it is pretty much driven by human beings sense of lack. I mean, think about it. When a normal, well-adjusted person has enough clothing, he often doesn’t have a drive to buy more until he perceives he needs something. It doesn’t mean he DOES need more…he simply thinks he needs more…often for the same reasons as the list above.
When we have enough, generally speaking, we stop having strong desires to go get more of that thing.
Now off the record, we all know people who buy more stuff even when they have more than enough. These people, especially, are looking to fill an emotional void and it’s often these people who have the more difficult time getting their spending habits under control.
Most of us have happened on the Hoarders TV show at least once and have said, “OMG, what possesses someone to do that?” unless of course, you have some hoarding tendencies yourself. If you do, you might want to consider getting some counseling…stat!
Or just keep reading. You may learn a bit about your ‘stuff’ habit because most of the reasons we do things repetitively is because we’ve allowed our unconscious drives to develop into habits but we’ll save that topic for another day.
The Main Reason We Buy Stuff
My best friend once told me that us human beings are usually struggling with one or more of the following self-concepts:
- I am lovable
- I am good enough
- I am worthy
When a person doesn’t feel they are lovable, or good enough or worthy, they will do practically anything to find ways to feel lovable, good enough or worthy.
Stop and think about your own life and habits, especially your money habits, right now. Which one or more of the above three self-concepts do you personally struggle with?
Even though we’re looking at our financial habits right now, if one of the above really hits home, you will probably find that many of your habits in other areas of your life are also driven by the same incorrect self-concepts.
After all…you ARE lovable, you ARE good enough, and you ARE worthy.
One of our favorite sayings by Cheryl Huber that we teach at Creative Wealth is:
“How you do one thing is how you do EVERYthing.”
We have found it particular useful when it’s time to truly look at your life and make changes.
Some common reasons people buy…and they’re not in any particular order.
To get attention: when was the last time you bought a sexy dress or new shirt in order to get the attention of someone for any number of reasons: you want to date them, you want your boss to like you, you want society to acknowledge you and on and on.
To feel connected or a sense of belonging: let’s face it…we’ve all seen that certain groups of people, whether socioeconomic, career, sports, ethnicity and even gender, have certain types of clothing, cars, houses, vacations, etc., that the majority of people IN these groups relate to and are actually used to define the group so to speak. It only makes sense, then, that some people will buy a certain thing because it’s what the group they want to belong to has.
By the way, buying gifts is often for the feeling of connectedness but also for appreciation. We’ve all known people who got us gifts in order for us to make them feel good about what they did ‘for us.’ If you really want to give a gift and do it with pure intention, gift it anonymously. Try this and see how it feels. You might enjoy the feeling.
As I’m writing this and contemplating the different reasons people buy stuff, I find that every reason seems to circle back to one of these two reasons. AND it allllllll boils down to my original simple answer:
We buy stuff because of how ‘we think’ it’s going to make us feel.
How to improve your buying habits
These are some simple ‘buying hacks’ for helping you feel more in control of your buying, i.e., spending. Hope they help!
My favorite question of all to ask myself…”Can I do without it today?”
Virtually 100% of the time, the answer is YES, I can do without it today. Then I go about my day and rarely think about whatever it was ever again. If I DO continue thinking about it, I ask myself this next question.
2) Ask yourself, “What is it I think I’ll feel if I buy this?”
You have to be willing to be honest with yourself. There’s no shame in not feeling lovable or worthy or good enough and when you finally discover what’s underneath a lot of your buying habits, you can create new, healthier habits that actually take you down the financial road you’d rather be traveling.
Another note is that when you DO realize what’s underneath it all, there are a LOT of ways to improve your self-concept. One of my favorite personal growth guys is Kyle Cease. I’ve never laughed so hard and gotten so much use out of one man’s insight and wisdom in my life.
3) If you DO buy something you probably didn’t need, LEAVE THE TAGS on it and staple or tape the receipt to the item. Set an event in your phone or computer for a couple of days before the ‘return by’ date and make a new deal with yourself. If you don’t use it or wear it by then, TAKE IT BACK!
4) Ask questions. Why do you want it? Why do you want that particular brand? What is it about this thing you think you need that will fill whatever void you happen to be feeling? What perceived lack (because all lack is a perception…heck, all of LIFE is a perception) do you think this thing will fill?
Just keep asking questions and if you’re the journaling type then journal your little heart away until you figure it out.
Our financial habits always add up in the end. This is one of our 30 Creative Wealth Principles (aka rules to the money game) that teaches us that where we end up financially is completely dependent on our money habits.
Buying stuff, regardless of the reason(s), will either take us toward the goals we want to achieve financially or away from those goals. It’s up to you to unearth your own reasons for buying and get those unhealthy habits turned around.
So…why do YOU buy? Please post your comments below…we love to get feedback from our readers.
by Elisabeth Donati | Jan 24, 2016 | Financial Literacy, Media Attention, Money Camps, Uncategorized, What you can do
Imagine living in a house with electricity and plumbing but no one every showed you how to plug something in or turn on the faucet. You are living in the dark, have no running water to drink, cook with or clean with and you have no idea how to change the situation.
This is exactly what it’s like to live in a world where money is the ‘currency’ that brightens our lives and quenches our thirst for the things we want to experience in life but we have no idea how to use it.
AND, we have no idea how to use it because most of us aren’t TAUGHT how to use money wisely and to our advantage by our parents or at school. Parents often think schools should teach it (primarily because they don’t know how) and schools don’t want to touch the subject because they don’t understand it either. There’s also rarely any time or money to support financial education in schools because they are too busy teaching students boring, irrelevant information that they will never use in their ‘real’ lives. But this is a discussion for a different day.
Why We Aren’t Taught About Money
Why aren’t we taught about money? Oh my, the answer to this question is long and has many chapters but I’ll try to keep this short and simple.
Enter the world I call the Financial Education Conundrum, meaning most of us don’t have a clue why we don’t learn this stuff when we’re young!
Here are some very basic reasons why we aren’t taught about money.
We don’t talk about money
The conundrum starts with the fact that we talk about electricity and plumbing like it’s no big deal but when it comes to talking about money, oh my gosh, we all too often make it a taboo subject that’s somehow different.
But it’s NOT different!
Money is the substance that virtually every human being in every culture on Earth uses every day to pay for the things he or she needs and wants.
Without enough money to pay for the things we need and want, life can be pretty miserable and while some people say that ‘money doesn’t buy happiness’, it sure buys the things we need to keep ourselves safe and sound and to most people, that’s pretty darn happy.
Research does show money actually DOES affect our happiness, up to the point that we have enough money to pay for our basic needs. Above that point and money doesn’t seem to have much of an effect on making us any happier.
We have to get so we can talk about money as easily as we talk about electricity and plumbing but why do we have such trouble talking about money?
Because we make it mean something about ourselves and others that’s just not true.
There’s a say, “Nothing has meaning except the meaning you give it.” This is oh, so true when it comes to money.
Too many human beings grow up thinking that the amount of money we have has something to do with the type of person we are or our ‘value’ to others, but nothing could be further from the truth.
- Having money doesn’t make us a better person.
- Having more doesn’t make us more important.
- Having money doesn’t make us cooler, or sexier or smarter.
- Having money doesn’t mean we can neglect those around us or stockpile it and not use it to do good in the world.
Money is simply tool to reach your dreams.
That’s it. It’s short and simple. Money is a tool…just a screwdriver or a hammer or a food processor. It’s a tool.
Money buys shelter, food, clothing, water, knowledge, transportation, and all of the wonderful experiences we call life.
Having money does come with responsibility…to use i wisely for yourself, your family, your community. Doing good with money is one of the most rewarding experiences in life and those who have a good deal more than others, quickly learn the power of using their extra money to help others. It brings us purpose and satisfaction in life.
The fact is, you wouldn’t let your child grow up without learning how to use a toothbrush, drive a car or swim. Why, then, do we let them grow up without a sound financial education?
It only makes sense to teach children this critically important information when they are young so they can grow up using it correctly and not have to, hopefully, learn about money the hard way by making mistake after mistake that could have been avoided with enough of the right type of financial information when they were young.
Can’t teach what you don’t know
While it may be that a large percentage of parents are financially clueless, that’s not a valid reason to not making sure your children or students are equipped with the financial knowledge they need to be self-reliant as adults. Our government coffers are struggling to keep up with the demand from uneducated, ignorant citizens who don’t have a clue how to handle money. It’s not their fault but it’s not the government’s responsibility to take care of people due to their sheer ignorance about money. It’s just not that hard to learn about money and investing anymore.
There are thousands of books on money and investing, online financial education programs, money magazines, free curriculums for home and school, mentors who are more than willing to help you learn as well ‘money camp’ type programs where kids, teens and adults can learn about money and investing.
Hey, and ya, learning about money and investing can be quite confusing. There’s a lot of contrary opinions about what to do but in my own experience, if you read enough books and you take enough classes and you ask enough questions, you start getting the same answers. THAT’S the information you go with…and what feels right in your gut after you start to understand the wonderful world of money…and it is wonderful.
Are you a parent or teacher who doesn’t have a basic foundation in Money 101? No problem!
Learn right along side your children. They won’t mind that you don’t know. Contrary to popular belief, children don’t expect their parents to be perfect.
The truth is, it’s easier for children to learn that making mistakes is a valuable aspect of life if they see their parents learning and growing also. Thinking you have to look like you have it all together to your children is actually a disservice to them. Kids need to know that adults are still working on figuring this ‘life thing’ out, too, and that life is simply a wonderful journey.
Don’t burden our children with money…WRONG!
This attitude about kids and money is downright dangerous to your children and your community’s children. You are keeping the basic information they need to grow up and live successfully away from them. While it doesn’t seem as harsh as not feeding them or giving them water, if you think about it deeper, you see that it’s incredibly harmful to their overall well-being and future.
What good is social studies, geography, history, math and writing if young adults graduate from high school and college with little to no knowledge of how to use and utilize the money they will hopefully go out and start earning on their own? They are now graduating with tremendous amounts of debt that can’t begin to understand, pay back or cope with and the social ramifications of this situation are tremendous.
Adult children are moving home because they can’t find jobs that will pay them enough to pay back debt, they are committing suicide from the financial pressure and are using drugs and alcohol to try to cope.
This is no way to raise children!
The definition of child abuse, according to Wikipedia and several other sources on the web is “the physical, sexual or emotional maltreatment or neglect of a child or children.”
By neglecting to make sure your children and the children in your community learn about the very substance that makes the world go around, as they say, you are indeed harming the child, sometimes in unimaginable ways.
Just as neglecting to teach a child how babies are made, that sugar causes cavities, that vegetables are important to your health, that wearing a seatbelt may save your life some day, neglecting to teach them how to make and manage money keeps them from living life to the fullest and is absolutely a form of child abuse in my book.
Your primary job as a parent and teacher is to make sure your children and students grow up to be fully functioning, responsible adults who can think through challenges on their own and take care of themselves. Not exposing them to money…the good, bad and the ugly…makes it hard for adult children to really create great lives.
What you can do instead:
- Stop thinking you are burdening your child or students with adult information they can’t handle. We ARE raising adults, right? They have the right to receive the information they need to live well on this Earth and they WANT this information.
- Even if you don’t know what to teach them, start today and teach yourself. There is NO excuse. There is an abundance of free financial education information and videos on the Internet and in the library for you to become an expert on money and investing.
- Involve your children and/or students in topics involving money. Know they are interested and the information will help them more than you know in the future. Even if you think they aren’t paying attention, they are. The point is to get everyone talking about money. Start today!
- Think of ways you can teach everyday topics through the context of money. Money often makes life lessons far more relevant to students.
- Make sure your children get plenty of practice with money. Give them an allowance and then help them budget, save money in a bank and start exploring ways to make that money grow, i.e., invest. We don’t get good at anything without plenty of practice and practice with money is critical if you want your chkids to grow into financially savvy and responsible adults.
- Visit our home page and sign up to receive our free report, The 3 Keys to Raising Money Savvy Adults!
One of the best (and most fun) ways to introduce children to the topic of money is to find youth summer programs that focus on money and investing. Here are a couple of great ideas…
1) Look on line for a money camp. There are many offered around the United States and some internationally. Type the following search terms into Google:
KEYWORDS: money camp, financial camp, millionaire camp, teen money camp, Moving Out for Teens, Camp Millionaire, money game, personal finance camp/class.
You’re sure to find at least one program within driving range. We have many parents bring their children from hundreds of miles away to attend our Camp Millionaire camp. Why? Because it’s worth it to them to know that their children have the tools they need to live successfully on their own after they move away from home.
2) Check your local summer camp locations to see if anyone is offering a camp or class through an already established youth program.
3) Look for a financial advisor or planner who is offering an educational event. While these types of events can be boring and more advanced, you may find one that is basic in nature.
4) Check out your local banks and credit unions. They often offer programs for both kids and adults on basic money management skills.
5) Take a financial education or personal finance class with your older teen.
6) If all else fails, find a financial education curriculum online and teach yourself and your child at home.
7) Lastly, consider hosting a summer financial camp yourself. You can work with us at Creative Wealth or some other organization and make sure your local children get the financial foundation they need.
OK, you don’t have any excuses now for not arming your child or students with the financial knowledge and skills they need to live a happy, healthy life full of the most amazing experiences possible.
It doesn’t matter how you do it…just get it done. Our kids are depending on us. Let’s show the ropes and give them a leg up on living the most awesome life possible!
by Elisabeth Donati | Jun 15, 2015 | Financial Literacy Principles, Uncategorized, What you can do
People work their entire lives to pay off a mortgage, accumulate savings, fund a retirement plan, and to create a financial legacy for their children. Unfortunately, many fail to create a proper Last Will and Testament, leaving children and surviving spouses with mounds of paperwork to sort through after a death. This leaves the courts to decide on how to distribute your assets, which may or may not reflect your wishes. Worse, people often create their Will, but neglect to include exact details on how they wish their estate to be divvied up after their death.
A poorly planned estate can leave some of your beneficiaries out in the cold, despite your best wishes. A divorce can further complicate matters. If you don’t wish your greedy ex to inherit your estate, you’re going to need to update your Will, and avoid any costly mistakes for your heirs.
To avoid estate planning pitfalls it’s best to carefully document your Will, and ensure that a qualified lawyer vets and notarizes it. As you enter your twilight years it’s worth checking every year or so, to ensure it’s up-to-date.
What is Estate Planning?
Estate planning is a process where you connect your assets to the people you love, in the event of your death. Assets may include a house, property, vehicles, jewelry, furs, collectibles, fine art, coins, savings accounts, retirement savings, bonds, and more.
Estate planning is usually done with a Will and/or trust accounts. You can designate to whom your assets will go after you die.
Estate planning is done for your piece of mind, and to properly provide for children in the event of your death.
Here are the top 9 estate planning mistakes people make before they die.
1. Neglecting to make an official Last Will and Testament.
Depending on which state you live, a Will found in a shoebox in the closet may or may not be a valid document in the event of your death. Even worse is having no Will at all. Failure to create a Will will place your successors in a bad position. Your estate could be tied up in the courts for years, or worse, your beneficiaries may not get what you want them to inherit. If you have young children they may be left without the support they need, while the courts decide how to divvy up your assets.
There are many books and software programs to help you get started with writing your Will. You simply type in your wishes and print out the document. This document needs to be taken to a lawyer to be vetted and then signed, and notarized. A notarized Will is considered an official document. A lawyer can assist you with wording and ensure that your chosen beneficiaries inherit exactly what you wish. You may not wish to rely entirely on a tax package, particularly if you feel that your estate planning might be complicated.
One copy of your Will should be kept with your lawyer, one with an Executor, and one in a safety deposit box. This will prevent any disputes in the event that one of them goes missing, and a relative tries to pass off an older Will as the most recent.
2. Failing to designate a Power of Attorney.
Whether you fail to designate a Power of Attorney, or you choose the wrong person, you’re failing to have a trusted person at hand who will handle your finances, and manage your accounts if you become disabled. It doesn’t matter whether it’s a mental or a physical disability–as you get older you may need help managing your affairs. Unfortunately, too often an unscrupulous relative can offer their services, and before you know it, the money is gone.
Many people may wonder what designating a Power of Attorney has to do with them in the event of death. If you fail to choose the right person, there may be no estate left to manage upon your death. In the event you become disabled, you need a capable and trustworthy person to manage your finances. This means designating a trusted Power of Attorney in advance, before you lose your mental faculties. A trusted Power of Attorney will ensure your bills are paid, ensure you have the care you need, and that your lodging is secured.
3. Leaving your individual retirement account to your estate.
If you choose to leave an IRA to your estate it will be subject to probate, along with your house, assets, and any other types of savings. If there’s any money left in the IRA after debtors have been paid, it will go to your heirs. Many people think that it doesn’t matter after they’re gone, but if you’re leaving survivors behind, possibly a spouse or young children, ensuring that they can make the most of your assets in their time of need is paramount.
To get maximum funds from an IRA, it should have a designated beneficiary set up in advance. In the event of your death funds are immediately transferred to your beneficiary, and will not have to go through probate. This can potentially save a lot of money.
4. Not updating beneficiaries.
If you set up your Will several years ago, your beneficiaries may not be current. In the event of divorce or death in the family, past beneficiaries should be removed from your IRA or Will. This is also applicable to new births in the family. Keep your documents up to date to avoid disappointment or disputes within the family. You’ll also want your children to be adequately provided for, should something happen to you.
The best time to review your Will is at tax time. Consider whether you have new family members, including foster or adoptive children you wish to include.
5. Not following through with trusts.
A trust can enable you to transfer some of your assets to a family member. but it’s a two-step process. You need to actually fund it. If you merely set up the trust, but don’t fund it, in the event of your death, your beneficiary may receive nothing. As soon as you set up a trust, you need to set up funding as well. Your assets will need to be retitled under the name of the trust. Don’t assume it’s done by merely listing assets that should be going to each family member.
6. Liquidating assets that are in the Will.
If you’ve decided to sell your house, or prized coin collection, but neglect to remove these assets from your Will, you’ve going to create turmoil during the probate of your estate. Many state laws will require the Executor of the Will to replace possessions designated to a beneficiary in the Will, unless the beneficiary is in agreement that they receive nothing. Property assets that no longer exist can tie up probate for several months while this matter is investigated.
In order to avoid disputes upon your death, your Will should be regularly updated. Assets that no longer exist should be removed from the Will. You may also wish to add assets if you have made any valuable acquisitions in the past year or so, such as property, vehicles, collectibles, time share plans, jewelry, etc.
7. Failure to note beneficiary specifics.
If you’re hoping that one child receives all your jewelry, while another receives your antique furniture, and for both of them to be in agreement, don’t. Family squabbles frequently happen after a mother or father has died. Parents just assume that children will get along, and be able to divvy up belongings like adults, forgetting that they may act like children where possessions, or money, is concerned.
If you have your heart set on leaving one child all your jewelry, or fine art, vehicles, or any other types of financial assets, be sure their name is clearly spelled out in the Will. Your other child cannot dispute what is part of a legal document. When your wishes are set out in a notarized legal document your children must obey your wishes. Having clear designated beneficiaries is also applicable to life insurance plans, retirement savings, and any other type of account where you can designate a beneficiary.
8. Using ambiguous legal phrasing.
Many people write certain ambiguous phrases into their wills such as “assets to be divided equally among survivors”, or “left to the discretion of the executor”. These phrases are open to misinterpretation, and may not even pass probate. It can leave your family open to disputes and squabbles that can lead to court battles. It can be baffling why a lawyer would endorse ambiguous wording, but the power is in the estate planner’s hands. An executor will do their best to follow their wishes. A will gives an executor the power to use their discretion. It takes a criminal act to displace an executor. Good-faith acts will never displace them. If your executor is someone you trust implicitly, it’s worth being more specific in your Will.
9. Not communicating your wishes to family.
Many people are uncomfortable discussing their Will with the family. But there is nothing wrong with giving them a heads up about your assets. If your only child is going to inherit the family home, that may give them the security of knowing that it’s going to stay in the family.
Other reasons to communicate with your family may involve records and papers for certain assets. You may wish your family to know where to find the deed to the house, or information about a life insurance plan. Perhaps you have a large collection of valuable coins hidden in your home. Notify a trusted member of your family, so that these valuables can be found in the event of your death.
After someone dies, it can be chaotic for family members to sort the house, go through their parent’s stuff, and toss or donate items. Often many valuables are overlooked. You don’t want your son to discover after the fact that there was an insurance policy, but now it’s too late for them to collect. Or perhaps the deed to the house is needed for a property transfer. Hunting down records will slow down the probate process. It can still be done, but more slowly. Other items to make your family aware of are safety deposit boxes and keys, vehicle registrations, and out of state property.
Prevent disaster by informing your loved ones about where your important documents are kept. Further advice about avoiding estate planning pitfalls may be obtained from your lawyer. Anything to do with passing down houses, property and vehicle transfers, investments, and other asset distribution can vary state by state. State laws can vary widely, so don’t assume that one state will follow the laws of the state you came from. If your heart is adamant on who inherits what in your family, and you wish to prevent disputes, the more care and detail you place into your estate planning is only going to benefit your family.
You may wish to create a current list of your assets, and update it once a year. This will enable the executor of your estate to find everything they need to manage your estate. Notify your lawyer or executor where this list may be found, in safety box, or otherwise.
Start Your Estate Planning Today
Create your Last Will and Testament sooner, rather than later. Ensuring that your family will have the support and financial care they need upon the event of your death will be one last checkmark to make on your bucket list. And once it’s done you can breath a huge sigh of relief. It’s done, and all you have to do is have a once-a-year review of your estate.
Sources:
http://www.bankrate.com/finance/retirement/estate-planning-mistakes-to-avoid-2.aspx
http://www.forbes.com/sites/robclarfeld/2012/04/25/7-major-errors-in-estate-planning/
by Elisabeth Donati | May 29, 2015 | Financial Literacy, Uncategorized, What you can do
Have you ever spent hours tearing your house apart trying to find a receipt, form, or slip of paper? Chances are you need that piece of paper to do your taxes, to submit a health claim, or for a work reimbursement. Many people miss out on the opportunity to get money back when they discard their receipts, or don’t keep good financial records. It is possible, however, to actually save money when you develop a well-organized system for sorting and collecting financial records together.
The best way to save receipts, statements, and sales slips is by purchasing a large accordion-style file folder. There are a ton of different styles on Amazon.com. They are generally made from cardboard and may have alphabetical letters in each tabbed slot inside, or you may be able to make your own with labels. There is a lid that folds back down and secures to the file container when not in use. There come in different thicknesses, depending on whether you’re collecting personal financial records, or for a business. These folders are around $10-$30, making them a worthwhile investment for when you don’t have a lot of space to store items at home.
You may wish to file papers alphabetically, such as “P” for pension plan, or “S” for school loan. Or, you may wish to create your own labels and stick them to each tab in your file. For example, “Bank”, “Income Tax”, “Insurance”, etc.
Each time you receive a receipt, invoice, misc. slip of paper or statement as you go about your daily life, place it in your bag, backpack, or purse. Later, you can put it into your file folder. It’s best to develop a ‘system’ or habit of doing this the same way each time.
As an example, do it the same day each week or every time you clean out your wallet. Developing a system is one of the most powerful financial habits ever.
Don’t ever discount those slips of paper. You never know when they may come in handy. A store receipt may come in handy if you’ve purchased a product, but it ends up being faulty. Without the receipt you won’t be able to return it. You’ve now lost money because you’ll have to fork over cash for a new one.
A receipt for school books or a seminar may be used as a deduction on your income taxes. Don’t get caught up in the bustle of the moment. When you’re handed a slip of paper, tuck it away and take care of it later.
Income taxes can be extremely complicated. As you work through them each year, you may realize that you could claim more tax breaks, if only you had kept the receipts. This is where your file folder and filing system will come in handy for the future. You’ll have all receipts right at your fingertips, and you’ll never miss out on a deduction ever again.
Do you ever buy supplies for work and then they reimburse you for them? Have you ever lost receipts, and then lost out on reimbursement? That will never happen again once you have your records conveniently stowed away.
You’ll not only save money by storing receipts that could potentially be a tax deduction, or work expense, but you’ll also save time. All your financial records will be conveniently stowed safely in one place.
A note about electronic filing systems that let you scan receipts and important papers and then ‘throw’ away the original. Don’t do it. What would happen if you scan hundreds of receipts and other bits of information over several years and then your computer dies? Just something to think about before you invest your time and energy into yet another device that requires you to sit in front of your computer more.
Favorite Receipt Tips:
Receipt Tip #1: As you probably have already discovered, many types of ink on receipts fade over time. Simply write over the information that is there in pen before you file it and the information will always be there.
Receipt Tip #2: For expenses like meals and taking clients out to dinner and such which is called Entertainment, it’s critical that you write who you went out to dinner with on the top or back of the receipt and what you talked about during the meeting. If you are ever audited, the auditor is going to look for this information.
Receipt Tip #3: This tip is especially important to you shoppers out there (and you know who you are). When you buy a piece of clothing, shoes, purse, etc. and you’re not going to wear it the next day, leave the tags on the item or in the box along with the original receipt. If you find that you haven’t worn or used the item in a few months, even though you might not be able to return it for cash, you may be able to return it for credit and get something you might actually wear!
Receipt Tip #4: One of our favorite saying at Creative Wealth is “How you do anything is how you do everything.” It’s a quote by Cheri Huber and this is only one of the thousands of applications of the quote. I had a friend whose business was audited years ago. The original audit period spanned three years but after looking at all of my friend’s receipts and systems for the first year, he told my friend he didn’t need to do the remaining two years. Why? Because it was obvious that he had a very tight system in place and that he was sure that the rest of the years were in order as well.
OK, now it’s your turn to get your system on!
by Elisabeth Donati | Mar 29, 2015 | Latest News, Uncategorized, What you can do
What’s Wrong With Our Schools
The longer I am in the financial education arena here in the United States, the deeper into trouble I see our education system getting in terms of truly educating our younger generation to be able to grow up and live the purposeful, happy lives they can dream up for themselves.
According to Wikipedia, the definition of education is…
“Education in its general sense is a form of learning in which the knowledge, skills, values, beliefs and habits of a group of people are transferred from one generation to the next through storytelling, discussion, teaching, training, and or research. Education may also include informal transmission of such information from one human being to another.“
From what I have personally witnessed, most of what our children are learning in school is rote knowledge. Our system is inherently lacking in the ability to teach skills, values, beliefs and habits that will help our kids lead those purposeful, happy lives as adults. It’s also lacking in its ability to teach leadership skills and produce our nation’s next general of leaders.
There are plenty of reasons why our education system is failing our children. Most of it stems from the Johnson Era’s initial Elementary and Secondary Education Act of 1965 (ESEA). The ESEA was a major federal law authorizing federal spending on programs to support K-12 schooling. ESEA is the largest source of federal spending on elementary and secondary education. It was actually part of the Johnson Administration’s War on Poverty.
We now know the law by its last iteration, No Child Left Behind (NCLB) which, by all accounts and standards, has LEFT all of our children behind in a big way. I’d like to encourage you to read more about the ESEA and NCLB so you understand what’s driving the bus our education system into the ground, and taking our youth with it.
The initial law didn’t actually support schooling. It supported the ‘opportunity’ for schooling of low income children. Although NCLB covers numerous federal education programs, the law’s requirements for testing, accountability, and school improvement receive the most attention. But the thing that really gets me is that while the law that was put in affect required states, school districts, and schools to ensure all students are proficient in grade-level math and reading by 2014, Wisconsin, and 42 other states have applied for waivers because they can’t meet this requirement!
Hello…does that mean only seven of our proud United States of America have actually succeeded in some level of education of its youth? Who knows but what it does mean is that something has gone terribly wrong.
What’s Basically Wrong with the USA’s School Systems
Our education system in the United States (for the most part I’m referring to public schools in general), is suffering because of the following basic issues:
- We’re not preparing our youth for real life. We don’t teach them a trade or skills in order to make a living. We don’t teach them how to parent. They receive no information on how to grow up and have healthy, happy families. They don’t learn how to have healthy, long term relationships. They are taught to follow instead of encouraged to be leaders. They aren’t able to communicate and think their Facebook followers are their friend. They aren’t taught about money and investing. They have no idea how to be healthy for a long period of time. And that’s just a short list of the skills, habits, principles and concepts they need to be productive, happy human beings.
- The next issue is the WAY we teach. Most education is boring, tightly controlled by testing and administrations that don’t really know HOW to teach except to stand up and lecture. Human beings learn better through visually learning and experiencing. And putting boys behind desks for hours at a time to take notes and memorize information is sheer torture for them. I consider this child abuse in a huge way.
- Testing too much and too often. It is well known that testing stresses students out and doesn’t provide for or create a favorable learning environment.
- Forcing the students to memorize and learn too much basic boring information that just isn’t relevant to them. Children will tell you flat out they have no idea why they are learning what they are learning in schools and parents and adults quickly admit that they learned most of what they really needed to be able to live their lives AFTER they left school.
- Our children are being drugged to death and the culprit is mostly what we are feeding them. For a great book on how to fix most ADD and ADHD problems, do yourself a favor and read, Grain Brain by Dr. Perlmutter.
- Technology has taken over. Everyone thinks that the computer is the best way to teach. IT ISN’T. The old fashioned way works better. And there are tomes of material on how inadequate learning from monitors actually is. And the sitting required to do so is incredibly unhealthy on top of it all. Note: I am regularly asked by kids and teens who take my financial education programs why all teachers don’t teach like I do. I tell them I really don’t know the answer to that question but to suggest to their teachers that they look up and learn how to use accelerated learning methodologies. They are really quick simple to learn and master!
- Cell phones in the schools are causing problems right and left. Just talk to any administration who hasn’t banned them from their schools yet and you’ll find out what all the fuss is about.
- There is little to no music used or taught, little to no physical education, rarely a shop class or home economics class, not enough physical activity in their days to get the kids brains and bodies moving so they are stimulated and excited about learning.
- And lastly on this short list of what’s a very long list in reality, is our school’s and teacher’s inability to provide EFFECTIVE discipline.
The 12 Steps Needed to (Start to) Fix Our Nation’s School Systems
I, and a whole lot of other folks, could fix the nation’s school systems in a year if given the opportunity. Here are just SOME of the very simple steps I would take to fix our nation’s education system and make sure they were helping to inspire and create a whole lot more of what this country really needs…hundreds of thousands of profoundly bright, motivated leaders who want to see this country thrive again.
First and foremost, we have to figure out how to get the government out of the education process. Because everything comes back to the all-mighty dollar, schools will have to be funded equally in some other way. Our government doesn’t a clue how to run a country or keep its citizens safe and well fed, let alone know how to educate our children.
Then, I would do the following (all at once):
- Change the way teachers teach…make them all experts in accelerated learning techniques, remove the desks, add chairs and tables and outside areas to learn in as well as build gardens at every school. Ever schools with little to no room can use creative PVC gardens to grow healthy foods for the students and teach the students how to be self-sufficient.
- Remove most of the testing or better yet, make all testing open book so everyone learns together and learning is fun again.
- Put the kids in uniforms so they stopped judging each other based on what they were wearing.
- Ban cell phones from classrooms and schools to keep the kids from being constantly distracted and keep them from using photos and videos against their peers.
- Get their minds out of the computers and back into the real world.
- Let the teachers TEACH the way they feel is best for the kids they have in their current classrooms. Every classroom of students is different because you have different groups of kids.
- Make the kids clean up their own classrooms and school facilities so they learn not to mess up their own homes.
- Teach them information that’s relevant to their lives (as opposed to what they are learning now)
- Teach them all a trade or skill so they can leave school and support themselves and their families. If only 69.5% of our high school students go on to college (doesn’t mean they graduate), doesn’t it make more sense to make sure the other 30.5% learn how to support themselves? You’d think the government would realize that the more kids who leave school with a valuable skill, the less adults end up on government assistance programs.
- Add physical education back into every day. We are fat and unhealthy and movement habits start young!
- Require kids to study music. It’s proven that it helps in every other area of their lives.
- Require entrepreneurship in high school for all students. It’s only through teaching and helping people to start successful new businesses that we provide our nation with a growing pool of great new jobs.
And those are just the things I would do to get the ball rolling! This is not rocket science as they say.
Share if you agree.
