One of the biggest challenges that we all face today is figuring out how we can spend less, and save more. One of the best ways to accomplish this goal is to reduce your monthly expenses. Although your standard monthly bills might seem like something you simply have to deal with, the truth is that you can pay a lot less on many of those “must have” items, just with a little bit of work.

By cutting down your monthly expenses, you give yourself more money to play with, without getting yourself into a position where you can no longer have fun with your cash. Here are the best places to get started.

1. Be More Energy Efficient

Being more energy efficient is a great way to save money and do your part for the planet at the same time. To cut down the amount you spend on gas and electricity, all you need to do is think carefully about how you’re using your daily supply of power. Do you leave lights on when you’re not in a room? Do you leave your computer running all day?

Simple actions like turning your heating down a notch or two and using a blanket to keep warm instead can save you a lot of money in the long-run. It’s also worth making sure that you wash your dishes by hand when you can too, as running a dishwasher can be very expensive.

1. Get Rid of your Home Phone

When’s the last time you actually made a phone call using your home phone? Today, many families are still paying for packages that include costs for home phone expenses, broadband, and television channels at the same time, but they haven’t picked their phone up in months.

Get rid of line rental if you can or switch to another provider who allows you to get broadband and television access without having to pay for line rental. It’s worth thinking about whether you need those extra television channels while you’re at it. These days, most of us use Netflix, instead of relying on our television subscriptions for entertainment.

1. Change your Car Insurance Provider

One of the biggest mistakes that we all make with our money is signing up to a service and then simply allowing it to renew year after year, without ever checking if we can get a better deal elsewhere. This is a common issue with car insurance. Simply checking online when you’re due for a renewal and looking for a better deal from a different provider could save you hundreds of pounds every month.

Just make sure that when you start comparing, you make sure that you’re looking at providers who can give you the same level of coverage that you’re already getting now.

1. Refinance your Big Loans

Plenty of us have loans that we have to deal with on a monthly basis, and those extra expenses can really drain our cash reserves. The good news is that you can save a lot of money by merely refinancing your loan and getting support from someone new. Check online to see whether you can get a cheaper interest rate, even on bad credit agreements and APR by switching to someone else.

While you’re at it, it’s worth checking out your mortgage situation too. You might find that you can save a lot of money by remortgaging your house and getting a better deal elsewhere. Speak to a mortgage broker if you need extra help with this.

1. Get Rid of Subscriptions

Sit down with a bank statement and highlight anything that you pay for on a monthly basis. Some of the expenses will be obvious, like your rent, your mortgage, gas, and electricity payments. On the other hand, there may also be expenses that pop up from subscriptions that you didn’t realise you were still signed up for. Plenty of us agree to join a gym, for instance, and then forget all about our membership a few months later.

Unfortunately, forgetting about your account doesn’t mean that you don’t stop paying for it. Cancel any subscriptions that you’re not currently using.

1. Pay with Cash

Finally, with anything that doesn’t come directly out of your bank as a direct debit, try to pay with cash. This will give you a self-imposed budget to work with whenever you go shopping. For instance, if you’re going to buy food and you only have £50 in your wallet, you won’t be able to over-spend if you see something you don’t really need at the checkout.

If you’re planning on selling your business, then you need an accurate estimate of its value. That’s usually easier said than done. Business valuation is a discipline that involves numerous factors and requires a detailed plan.

But first, a quick definition of what business valuation is: you can think of it as the process that determines what your business is worth. It can encompass an array of different methods that will underline different results.

Why do you need so much hassle to measure your business value you may ask yourself. Well, the answer is quite simple: different people value different things, and if you’re looking for investors or want to sell your business, you’ll need to appeal to different business priorities from third parties.

So here are three methods to work with when you ask yourself, how can find out the value of my business?

1. The Asset Path

When you look at your business strictly from the perspective of its assets (and, consequently, its liabilities) you are indirectly answering the following question: how much would it cost to set up another business like the one you have, complete with the same financial benefits?

With this approach, you need to figure out which of the assets and liabilities of your business you need to include in your valuation, as well as assess each of their relevancy. Do you add internally developed products that, while not on the market, help facilitate some in-house processes?

Honestly, that’s for you to evaluate and decide. The purpose of the asset path is to underline the worth of all the things your company owns, which can be of interest to both potential investors and buyers. Those who invest want to know the basis of the business they will put money into, while those who buy might be interested in knowing possible liquidation values.

2. The Market Path

Another way to value a business’ worth is to look at their place in the market, specifically the worth of other similar companies.

It is, perhaps, one of the most subjective methods of valuation from the list, because you can’t asses the market value of your business based on real data. You’d need to access information on your competitors’ value, and that’s not usually public information.

The market value approach is more of an estimate to use at a negotiation meeting, where you’ll have to convince a potential buyer that your company has a certain value on the market. However, if you want things to go your way, then you will need the help and representation of a market expert.

3. The Income Path

How much money do you make after investing in a particular company? The income path to valuation can let your potential partners know precisely that.

This approach helps you understand what type of financial gain your business is set to bring to its owners and investors. It’s also a method of valuation in which you can highlight the worth, should the parties investing in your company be more interested in that information.

There are two ways to go about it:

Through income capitalization, which implies taking the expected business earnings of a company and dividing them by the capitalization rate. It’s a useful method for companies with a steady profit.

Through cash flow discounting, where you estimate your business’ future income, convert what that means in today’s dollars, and forecast what your company is likely to be worth.

Your Next Step

Now that you’re aware of the best business valuation methods out there, it’s time to decide which one to use. Keep in mind that sometimes, you might need to use more than one.

Unfortunately, there’s no easy way to decide which one is best. You’ll have to do some groundwork and figure out which one will make your business look more appealing to investors or buyers. But once you’ve done that, you’ll be more than prepared to sit down and negotiate something in your favor.

Car equity loans are similar to home equity loans, but instead of using your home as collateral, you use the value of your vehicle. You then pay it back with interest.

Similar to other secured loans, you risk losing your property in case you don’t make the payments. The tradeoff is that the lender has a reason to trust you even if your credit score isn’t great. Of course, if you fail to pay this loan, your credit score will be even worse.

Is this the right option for you if you need a loan? Many people have reasons to consider auto loan refinancing and title loans. Before we proceed to that, let’s take a closer look: “What is a car equity loan?”

What is a car equity loan?

Car equity loans are the loans you get when you receive the loan with car as collateral. The rates depend on your credit history, credit score and the value of your car.

Car equity loans are not difficult to get. You need to provide the following to the lender:

• A car registered on your name
• Loan processing documentation
• Identity document
• Proof of employment and income
• Comprehension and collision auto insurance coverage.

What is auto loan refinancing?

If you are having problems with making your payments, you may want to consider auto loan refinancing. Usually, you pay high interest, so it is wise to apply for this type of loan when it can pull your interest rates down. You can take a new loan with more money than what is left on your current loan, pay the existing loan and keep the extra cash.

What is a title loan?

You can get quick cash from auto title lenders. The lenders hold the title of your car as collateral. Your credit does not matter in this case. This means that even if you are a bad creditor, you can still get the loan in exchange for their car title.

What happens is that you get a secured instead of an unsecured loan. In the case of an unsecured loan, you don’t need collateral. To cover the risk, you pay the higher interest rate and may get less money for a shorter time.

When you take a title loan, the risk is lower for the lender because the title of your car serves as collateral for the lender. Lenders use the blue book value of your vehicle. The lien holder is the lender, but you can keep on driving your car while you are paying back the loan.

This is the reason that title loans are better than unsecured loans. They create less risk for the lender, which means that you can get the loan on more beneficial terms.

Do I need to be insured?

Most lenders normally require proof of comprehensive and collision insurance coverage. The lenders may also offer you to buy credit insurance. This insurance covers your loan in case your car is damaged, or you are unable to pay for some other reason.

Where to find a lender?  

Getting a loan in major banks will be very difficult. Instead, consider working with a community bank, credit union, or online lender. You can find online lenders operating in most states. Montana Capital is one example, but you will find many others with a quick search.

Online lenders often give instant cash loan in less than an hour. You need to answer a few questions about your car, and the cash will be in your hands. You keep on driving your car as you pay the loan.

If you are a bad credit holder, car title loans are the best for you. When compared to unsecured loans, they are cheaper. They also bear less risk than the loans on your property.

When you are looking to add another stream of income to your bank accounts, consider trading in penny stocks. Penny stocks are low-priced stocks with shares costing only a few dollars to a few pennies. Why should you invest in penny stocks? Because if you are reasonable, level-headed, and do good research on the types of stocks you wish to trade in, they can be profitable. Here are four reasons why you should start small when delving into the world of penny stock trading.

You Don’t Need Loads of Money

Image via Flickr by Katherine Ridgley

Investing in big companies with expensive stocks often require huge amounts of capital for the initial investment. However, investing in penny stocks requires smaller capital to begin with, often with as little as $500. If you are just beginning to explore the world of penny stock trading, it is better to start with this smaller initial investment to make sure these types of investments are right for you. You will need to open a trading account with a penny stockbroker; just make sure that they are reputable, don’t charge excessive fees, and have your best interests in mind.

Your Risks Are Lower

Another good reason to start small with penny stock trading is that your risks of losing money are lower. As much of the penny stock market does not have the strict regulations offered by the Securities Exchange Commission, many of the companies you would be investing in may be at high risk, so starting out small may help to mitigate some of those risks. You will want to invest in companies that offer transparent information about their financial situation so that you can make the decision to invest in them or not.

With that said, it is never wise to do penny stock trading with companies found through pink sheets or through over-the-counter brokerages that offer “hot” or fad stocks from a company that may soon go bankrupt or has a bad reputation. A better strategy would be to consult with a financial professional who can help guide you to find small start-up companies that may be listed on NASDAQ’s Small-Cap category.

It’s Easy to Diversify Your Investments

With penny stocks, the key is in high volume trading. The advantage of this is that you can diversify your portfolio with lots of small penny stocks. Some will return a profit and grow while others will disappear. Spreading your investments out can save you from going bust with one big investment into a failing company.

You Can Take Your Profit Early

With penny stock trading, you never know where the market may be heading, so instead of sitting on your investment long-term, take the profits early in case of a crash. If you see that the market you are invested in is failing, cut your losses quickly. This strategy can help you see returns quickly.

Penny stock trading can be lucrative if you are willing to do research on quality companies and exchange options. If you are new to trading stocks, especially penny stocks, hire a professional consultant who can help you understand the penny stock market and help to advise you on stocks that will show sustainable growth resulting in financial rewards.

When you are in your twenties, some of your only monetary concerns are student loans and perhaps starting some of your mortgage payments. While these are all good financial milestones, there is more to financial success than simply starting to pay off these two things. Having healthy finances can be boiled down into a simple recipe that any young person can follow.

One Gallon of Good Credit

This is the one thing that will carry you the farthest out of all the things on this list, so you will need the most of it to find success. If you have started to pay off debts using a credit card or started on a mortgage, then you have already wisely established a line of credit and now it is all about upkeep and raising your score if at all possible. There are simple ways that you can do that, such as paying off all of your balances in full and on time so that you can make the most of your money without having to pay high interest rates on each of your debts.

A Cup of Retirement Savings

You may just be a twenty-something, but age is just a number. This means that there is no excuse for you to avoid saving for retirement today. However, you don’t need to go overboard on saving for retirement at the moment. Rather, you can simply put a cupful of your money towards retirement now so that you don’t have to worry about adding a cupful later. Taking the worry off now while you can still recover from bad investments and bad transactions will help you not have to be so reliant on retirement pensions and spend more money when and where you want to as you age.

A Pinch of Risky Investments

While you are a twenty something, you have an advantage when it comes to the stock exchange: you can take bold risks that other people simply cannot because of the risks don’t pay off, there is no way for them to recover. You should keep some of these investments in your portfolio in case they do pan out so that you have a good source of passive income. As you get older, you will need to keep your portfolio diverse, but you won’t be able to take as many risks with your money as you’re able to take now. Use your lack of years and amount of time to your fullest advantage and milk your risk-taking abilities for everything that they are worth.

Mix Well with Time and Care

Although these are habits specifically meant for a person in his or her twenties to take on, these go hand in hand with good habits that you continue to practice when you get older, such as selling your riskier stocks, keeping a diverse stock portfolio, and adding a bit more to retirement every year. By the time that you are older, in your forties and fifties, and others around you are still struggling to start their retirement funds as well as pay off their credit card debts, mortgage, and student loans, you will have several of those things already taken care of by not just following this recipe, but making it your own by adding elements that will help you succeed in your own financial situation. Every financial situation is unique, but hopefully this provides a framework for you to get an idea of how to succeed financially as an American in their twenties.

This is a simple recipe that nearly anyone can follow, and you don’t have to be a brilliant, classically trained chef to be able to follow it to a T while also adding some of your own more individual flavors and flairs.

The distance between present and the future seems short when considering retirement. At this point in time, you are too busy to consider saving up for your autumn years. That distraction could end up keeping you struggling well past your sixties.

If you are not saving for retirement, then you must start now! Nearly 30% of private sector workers do not have a retirement savings plan. Moreover, even fewer than half know how much they need to invest for a 401k plan. Build peace of mind as you earn to support yourself and your family. All you need is careful investment and consideration to ensure you live comfortably in your golden years.

Here are a few tips that will help you maximize your retirement savings.

Play Catch-Up

Even if you’re heading into your 50s without a retirement plan, there’s still time to save. While it’s common to start investing at age 25, older clients may have to contribute large to meet an equal balance.

If you were to invest $75 per month at a rate of 8%, then you would earn $263,571 by age 65. Contributions are often limited to those under 50. Those reaching 50 or older are able to go above the $1000 dollar limit. Catch-up contributions made by older investors can go anywhere from $4,000 to $6,000.

Open an IRA

You might be familiar with 401k and 403b company matches. As long as you contributed 5% worth of your yearly earnings, you should be getting tax-free money from your employer. Not all jobs last forever though, and you’ll need to roll those stagnant earnings into an Individual Retirement  Account.

A Traditional and Roth IRAs are perfect receptacles for your savings. Contributions to a traditional IRA are tax deductible, but retirement withdrawals may be taxed. Roth IRAs, on the other hand, offer tax free withdrawals. Taxes will be charged if you are not 59 years or older.

Health Savings Accounts

Budgeting for health coverage becomes increasingly vital as the years wear on. It’s possible to combine your retirement savings with health needs by registering for a Health Savings Account.

The first step is to apply for a High-Deductible Health Plan. Through this you can apply for an HAS if you are not on Medicare or claimed as a dependent on someone’s income taxes. Deductibles cannot exceed $12,700, but monthly premiums remain low. A spouse or family member can contribute to your account that can be used to cover most major medical expenses. Any funds contributed will rollover into the next year.

Choose the Right State

When people talk about moving to Florida for their retirement,  they aren’t going just for the warm beaches. States like Florida, Nevada, Texas, and Washington offer significant tax breaks for pensioners.

Before you go looking up houses for sale in Colorado Springs, it’s important to consider the prospective state’s tax laws. While Social Security is relatively tax-free, dividends and interests might be. Any state is a good choice if you’re savvy about savings.

The internet has made our lives so much easier. Today, we can book tickets, shop, access banking services and finish numerous other tasks online. Trading stocks has also gotten easier due to the convenient access to financial markets online. You can now access the securities markets and start trading on-the-go, from your desktop, tablet or mobile. All you need is a demat account; you can open one with your bank or online with broking firms that provide the service.

As careful as you are about which stocks you trade in, you also need to be careful that the platform you transact on is safe and secure. There was a time when trading online may not have been safe but with advances in technology, it is considered the ideal choice. However, there are a few preventive measures you can take that will help you trade securely online. They are outlined as follows:

Personal information: Try and keep the important personal information you share online, to the bare minimum. Create passwords that are seemingly random and difficult to guess, but ones you can remember very easily. Keep changing them regularly. Take care not to use the same password across different sites. And most importantly, never store information related to your usernames and passwords on any computer.

Use a trusted browser: Make sure that the browser you are using to trade is a trusted browser such as Google Chrome or Firefox. Always check for the ‘https’ protocol in the URL to make sure the site is safe and secure. For example, Google Chrome warns its users by displaying a ‘not secure’ warning before opening an unsafe site. Do not trust websites which do not have an ‘s’ after the ‘http’ at the beginning of a URL. Also, ensure that the site you are using is encrypted to protect your information.

Check the web address: Scammers are very tech savvy these days. They very easily use fake websites to steal information to scam you of your hard-earned money. A lot of fraudulent sites known as phishing sites spoof real websites. The best way for you to safeguard yourself against a phishing scam is to be alert: check for proper spelling in the URL as scammers generally misspell a letter which may go unnoticed by you. It is always recommended that you type the site’s URL directly into the browser rather than clicking a link.

Install an antivirus: Malware and viruses have gotten more common than ever. For example, when a Trojan virus affects your computer it can track your online activity and steal all your sensitive information. Protect your computer from such attacks by installing a genuine, paid antivirus software and scan your computer regularly. An antivirus software also scans and provides trust scores for websites for a safe browsing experience.

Avoid public computers: Try and avoid using a common computer, especially for trading, if you can. Sites normally collect and save a little information known as a cache to give you a better experience. This information can be retrieved later. If you cannot avoid using a shared computer such as the ones in cyber cafes, make sure to log out from the site and computer once you are done. Mobile users should avoid using public wireless network signals to access their trading accounts.

With more than 25 years of experience in trading, Kotak Securities provides retail and institutional investors with a platform to trade stocks online. They have developed their own robust proprietary trading platform for safe and secure trading. Their broking app allows investors to access markets across different platforms so they can track their portfolio, view live prices and trade online. With more than 150 technology specialists working continuously to upgrade and speed up the platform, Kotak Securities’ services are among the best in the industry.

Trading online will always have its risks but you can be smart and profit by being alert and trading securely.

Real estate investors face a series of hurdles even after finally locating a great piece of property for future investment. This process can be time-consuming, so it may seem like an extra burden when it is time to find a source of financing for the mortgage. Traditional banks may look down on properties that are currently in bad condition, and this is common even when the investor has a history of turning similar properties around. In addition, the loan requirements from the bank or credit union are often prohibitively high, and this creates a barrier that can be difficult or impossible to overcome. This is why real estate investors should seriously consider the option of taking out a hard money loan instead of trying to meet the expectations of a bank.

Weighing Risks of Financing Options

One of the major risks for real estate investors has to do with the time value of money. There is a certain point when the mortgage has to be issued in order to achieve the desired returns. Properties that are purchased for their investment value will only provide this return if certain conditions are met over time. Bank loans are not designed to accommodate this particular type of investment even if it makes sense and is well-planned. This is where the risk of not getting a prompt loan can outweigh any possible benefits offered by the traditional lending institution. The alternative is the hard money loan, which is a loan offered by a person or entity that is not affiliated with any institution. Carefully evaluate the potential benefits as well as the possible risks in order to determine if this is a good fit for the specific situation.

Potential Benefits, Hard Money Loans

Mitigation of risk is always a top concern for any lender, so it is important to have a solid business plan in place before seeking the hard money loan. This will help the borrower to get the best terms possible. There are many potential benefits to consider when looking at the option of a hard money loan. The requirements of a bank loan are typically much higher than the loan contract offered by a hard money lender, for example. In addition, the terms of a hard money loan are typically more flexible than the options available from a bank. Lenders are often individuals who are interested in circulating their money, but the hard money loan can also come from groups of investors as well.

Terms and Conditions of Hard Money Loans, Summary

Everything is potentially negotiable when dealing with a hard money lender, and this includes interest rates, payment terms and even the aggregate balance limit. However, it is the borrower’s responsibility to fully understand the terms and conditions of any loan. This also includes the potential risks of doing business with the lender. The borrower needs to always exercise what is known as due diligence before accepting a hard money loan. This is simply the process of researching the background of the lender to assess the credibility of the funding source. Check the background of the business entity if applicable, or research any public records that are available on the lender. This information can help borrowers make informed decisions about the risks and benefits of accepting a hard money loan.

Money is a popular topic of discussion. Parents, friends, bosses and others are often forthcoming with a load of free financial advice. Unfortunately a lot of the touted wisdom being passed on so readily is oversimplified or just plain outdated. Many sensible ideas which were originally meant as broad guidelines have been twisted into exact rules of thumb. This article aims to highlight the idea that personal finance is meant to be personalized. It is an important enough subject to warrant ownership and deliberate thought.

Myth 1: It is too early to save

A lot of early career professionals think that they earn too little to save and that there will be plenty of time for financial planning ‘later’. This line of thought is dysfunctional for multiple reasons. First, savings accrue interest and grow over time, so sooner is actually better and no amount is too small to save. Second, saving is a habit. Your regular savings may start small and grow over time, but if you sow a habit of not saving then your future financial security is doubtful. Every little bit makes a difference. Small savings made early can compound to much more than bigger savings started later.

Myth 2: It is too late to plan

Mid career professionals without significant savings often tend to give up hope for a secure financial future. In truth there is a lot you can do even in your mid forties to ease your post retirement life. You can set a goal to pay off debts during the productive years you have left. Find a suitable health insurance plan and cultivate a healthy lifestyle to minimize your future healthcare expenses. Start your search for a more affordable home to move into. If you fail to take these measures now, you may still make a positive contribution to the domain of personal finance by becoming an example for posterity of what to avoid!

Myth 3: I’m not qualified to do personal finance

There are those who think that good financial planning is not possible without hiring a financial advisor. The truth is that personal finance is mostly a function of common sense and diligence. The vast majority of information about investments, taxes, savings and other aspects of personal finance is available freely from books and online sources.

Moreover financial advisors often have vested interests. In addition to taking part of your money as fee your investment advisor may be getting a commission from a third party to steer your money toward a particular investment. You may not fully understand the risk which that investment entails. Sadly many well educated people use financial advisors as an excuse to procrastinate. Worse, advisors are often unscrupulous. One does not need any specific qualifications to call oneself a financial advisor. You cannot establish the credibility of a financial advisor as easily as you can for a doctor or an architect.

It is much better to take some time to understand your investment options along with the risks, expected returns and long term outcomes. Remember that it is ultimately your money and your responsibility. By spending a little time regularly and systematically one can effectively manage personal finances without any help.

Myth 4: Owning is better than renting

For most people owning a home is a dream worth pursuing. However, if you take on a larger mortgage than you can pay while living comfortably, you may soon find yourself in need to transfer money from all your savings and other sources just to avoid foreclosure. Making large monthly payments on a mortgage can be a disconcerting financial burden. It can drain the quality of your life during your most productive years and leave you feeling stuck and helpless. Mortgage payments are significantly and consistently larger than rents. Renting, as opposed to a mortgage, allows you to have a higher disposable income while living in a larger space. Renting also gives you flexibility in terms of where you want to live and how often you want to move.

Myth 5: Low risk low return

Many of us grow up with the notion that the return on an investment must be proportional to the risk. Bank accounts are safe but offer low interest rates while stock markets are risky but can be wildly profitable. There is little reason to abandon this conventional wisdom altogether. At the same time the performance of many high return financial instruments has been dismal on average for several years. Meanwhile the current unpredictable economic climate is making guaranteed return investments look more attractive. It makes sense to update yourself about tax-free and delayed-tax long term savings instruments before investing.

Myth 6: Insurance is a waste of money

The primary reason why people skip on insurance payments is not lack of money; it is because they fail to see insurance for what it is – a safety net. If you are paying for health insurance and never get sick your insurance payments are not wasted. You are paying aptly for the safety net to be in place all this time to cushion you from the eventuality of massive hospital bills. Moreover you should be thankful for your good health and full productivity. The same applies to term life insurance and pretty much all pure insurance products. For this reason you should calculate the adequate amount of insurance cover you need for yourself and your dependents. What muddies the waters is the collection of combined insurance-investment products where it is hard to discern how much you paid for cover and how much of your money was invested for gain.

Myth 7: My credit card is my rainy day fund

Some people collect a bunch of credit cards thinking “the plastic will pay my bills in case I lose my job”. Anyone who believes this idea lacks a basic understanding of how credit cards work. In case of an unexpected loss of job it is normal to take a few months to find new employment. Credit cards allow for a limited credit period, usually a month or 45 days, before starting to charge you hefty interest. As your credit card bills go unpaid you start losing more money with interest building up. By the time you get a new job your credit card debt has piled high while your credit score is in shambles. This makes it impossible to secure any new credit just when you need it most. For these reasons credit cards are the worst rainy day funds imaginable. A proper emergency fund is a small but adequate corpus of savings set aside for specifically this purpose.

Source: Pexels 

The death of a family member – or even that of a close friend or colleague – can have a tremendous impact on our lives. Sometimes sudden, other times expected, grief can make even basic tasks and work difficult; so when an inheritance comes your way, it’s important to take things slow with any influx of cash or estate. We’re all human so we’re all prone to mistakes, especially during such emotional times. Sometimes the deceased will have planned for their passing and its associated costs, sometimes not. Sometimes their wealth will be split neatly, others it will land in a single person’s hands. Whatever your personal situation, here’s how to be responsible with an inheritance of any size.    

Admin and the Big Bills

Should a will exist and you are included therein, the executor will inform you as such. At this point, it’s important to remain detached. It may be that the deceased had a higher net worth than expected, but it may also be that they spent much of their earnings in later years, unbeknownst to yourself. You cannot expect or guarantee any amount of money – but should there be some, be careful. First, ensure that funeral costs and admin fees are paid in full. Care homes, medicines, hospitals and reverends all need their due, as ugly as such bureaucratic processes seem in death. If you don’t make sure these are paid now with the inherited money – likely intended for such uses – the fees may come back to bite in the future. In most premeditated cases, a will likely reserves funds for such costs, but not always. Be sure to check.

Burrows for the Winter

Source: Pexels 

The admin is all taken care of, time has gone by, mourning is in progress and suddenly there’s a new lump sum in your bank account, be it from property or cash. Consider doing the responsible here and investing said sum, either into a savings account or more riskier ventures. Forex, stock and options trading can all be done through safe and secure sources these days, giving you personal control over the rise and fall of your items. Just think: the source of your inheritance did not come from frivolous or casual spending. Your family member or friend was wise enough to take care of their money and let it grow so they were in a position to pass it on to others. Do the same and one day your own family could benefit, too.  

To Good Use

That being said, there’s no harm in a little luxury. Money might not make happiness, but it can help and in the depths of grief a little splendour can mean the world. You might use inheritance to take time off of work and heal, to travel somewhere new or to build a memorial to the deceased in your local town. Benches, plaques, even charities can be named in honour of a loved one and such altruistic use of money can benefit dozens, if not hundreds of others in need.

Loss is never easy, but planned management of a received estate can certainly ease the stress of the situation.