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Tamila McDonald is a U.S. Army veteran with 20 years of service, including five years as a military financial advisor. After retiring from the Army, she spent eight years as an AFCPE-certified personal financial advisor for wounded warriors and their families. Now she writes about personal finance and benefits programs for numerous financial websites.

Here’s What Homes Cost in 5 States Around The Country in 2022

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cost of homes

In the United States, the median home value comes in at $320,662. While most wouldn’t consider that cheap, it isn’t anywhere near what you may have to pay in some parts of the country. However, that doesn’t mean there aren’t areas where paying that amount would only happen with a luxury-style home, as the average for the state is actually far lower. In the end, where you buy a home makes a big difference when it comes to pricing. If you’re wondering how much, here’s a look at what homes cost in five states around the country.

1. Iowa

When it comes to lower-cost housing, Iowa is one of the least expensive places to buy a home. Even though home values have risen by 12.2 percent within the past year, the cost of a house is much lower than many would expect. In Iowa, the average home value comes in at $178,608, putting it more than $142,000 below the national average.

2. Texas

Texas has also seen home values rise quickly in the past year. Overall, the year-over-year change is a startling 21.6 percent, leading many to assume that prices in the area would be hard to manage.

In reality, the average home value in Texas is $276,048. That’s still more than $44,000 under the national average, making the properties seem downright affordable by comparison.

3. New York

While real estate in New York City is notoriously expensive, that doesn’t mean home values are out of control in the rest of the state. In fact, even with home values rising 13.7 percent over the past year, New York isn’t as high cost as you might expect.

The average home value in New York sits at $374,717. While that’s still about $54,000 above the national average, it’s likely isn’t as high as you’d expect.

4. California

In the land of higher-cost real estate, California firmly has a position near the top. Typically, the state is sitting just one place behind the highest cost state (if you don’t count the District of Columbia).

Certain cities are notoriously pricy, such as San Francisco, which comes in with an average home value above $1.5 million. However, not all areas have those kinds of price tags, so the state average is fortunately far below that amount.

Still, California home values have risen by 20.1 percent in the past year, causing the average home value to come in at $734,612. That’s $413,950 above the national average.

5. Hawaii

If you’re wondering which state has the highest housing prices, look no further than Hawaii. It usually tops the charts when it comes to real estate purchase costs, outpacing every other state in the nation.

The average home value in Hawaii is a shocking $821,263. That’s more than half a million above the national average. In fact, you could have four average-value Iowa homes or two average-value New York homes for that amount with a notable amount of room to spare.

Are you surprised by how different the cost of homes is in each of the states above? Have housing prices encouraged you to relocate to another state to make homeownership more affordable? Share your thoughts in the comments below.

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5 Ways to Get Financial Freedom in 2022

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5 Ways to Get Financial Freedom in 2022

Getting on the path toward financial freedom is something anyone can do. While it does take time, attention, and diligence, getting a grip on your finances and making wiser choices can help you get past a paycheck-to-paycheck existence, ensuring you can achieve financial freedom. If you aren’t sure how to begin, here are five ways to launch the journey and make real progress and have financial freedom in 2022.

1. Aggressive Budgeting

If getting financial freedom is your goal, you need to budget aggressively. This goes beyond allocating funds to handle your minimum debt payments and other expenses. It involves being a ruthless cost-cutter who prioritizes their spending based on their values and goals and puts every extra cent captured toward debt repayment or savings.

However, you don’t have to make yourself miserable to go this route. Instead, you simply want to avoid all expenses that don’t bring you legitimate value, allowing you to focus more money on debt repayment and saving.

2. Boost Your Income

Increasing your income is a straightforward way to put yourself on the path toward financial freedom. When your income rises, you can direct more money toward debt repayment, saving, and investing, allowing you to reach your target sooner.

Exactly how you pursue this could depend on your current education level and skill set. In some cases, returning to college to get on a different career path could be worth considering. In others, actively pursuing new responsibilities at work and striving to exceed expectations at every step could let you secure a promotion.

One of the biggest must-dos in this situation is avoiding lifestyle inflation. When you earn more money, it’s easy to assume that increases in your spending don’t matter as much. In reality, by keeping your lifestyle in check, you’ll make progress faster, making it easier to achieve your financial goals.

3. Invest More Than the Minimum

When it comes to investing, many people set aside 10 percent for their retirement and assume that’s enough. However, if financial freedom is your goal, then you need to take it further.

Along with maximizing your retirement savings, open a brokerage account and invest more there. Brokerage accounts don’t have the same limitations as retirement-oriented accounts, allowing you to set aside far more.

While there isn’t a specific target you need to hit, aiming for around 20 percent of your income isn’t a bad idea. If you have more money that you can direct toward investing after that, feel free to do so. As long as you’re investing wisely, any extra cash you commit will simply help you achieve financial freedom faster.

4. Focus on Your Health

While focusing on your health might not seem like a path toward financial freedom, it can play a surprisingly big role. When you keep your physical and mental health in peak condition, you may have fewer medical needs, allowing you to spend less on healthcare.

Plus, happy, healthy individuals are more productive and better equipped to handle stress. That can help you succeed professionally, making it easier to secure promotions and increase your earnings.

5. Don’t Overlook Financial Protection

For many people, a single financial emergency can significantly derail their plans. Make sure you have the right protections in place whenever possible. Along with medical insurance, you may want to explore healthcare supplements, long-term disability, and similar kinds of optional coverage. That way, if the unexpected happens, you’ll have a financial safety net.

Precisely what you’ll need and the coverage amount you’ll require depends on your situation. If you have a family and a limited amount in savings, you may need more coverage, particularly if you’re the primary earner. If you’re single and have ample amounts of savings in an emergency fund, you may be able to scale back a bit.

Consider how losing your income source, high medical costs, or similar issues might impact you. Then, look into plans and policies that offer you some level of protection. That way, a single incident won’t keep you from heading down the path toward financial freedom.

Can you think of any other ways someone can get financial freedom in 2022? Have you tried any of the approaches above and want to tell others about your experience? Share your thoughts in the comments below.

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10 Questions You Need to Ask Your Parents About Their Finances Now

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10 Questions You Need to Ask Your Parents About Their Finances Now

If you’re the adult child of aging parents, having open, honest conversations about finances could be essential. By learning more about your parents’ situation, you can make sure that their future is bright. You’ll have a chance to intervene if necessary and prepare for emergencies. Plus, you’ll be better equipped to navigate their passing if you’re the executor of their estate. Thankfully, by asking the right questions, you can head down the right path. Here are ten questions you need to ask your parents about their finances now.

  1. What Does Your Financial Plan Look Like?

First, you want to ask your parents for an overview of their financial plan. Along with insights into their income and expenses, it’s wise to discuss savings and retirement account balances. That way, you can determine how long those funds will last.

Additionally, you may want to touch on other aspects of their financial lives. For example, since home equity can be tapped, knowing how much is available may be wise. Asking about their medical insurance – particularly their long-term care coverage – is similarly intelligent, ensuring you know how much funding is available if they need prolonged care.

  1. Are You Worried About Running Out of Savings?

This question is less about learning the nuances of their financial situation and more about discovering their mindset. It lets you know if their savings account balances are a source of stress, giving you an opportunity to find out more about their concerns. Then, you can work together to address them.

Additionally, it can let you know if there are mental health issues forming, such as depression or anxiety. In some cases, it may even allow you to discover signs of cognitive decline, depending on how their answers compare to the reality of their situation. In any case, it’s a smart question to ask.

  1. Is There a List of All of Your Accounts Available?

Having a list of all of the financial accounts available is crucial for several reasons. Along with simplifying the management of their estate after their passing, it gives you an overview of what has to be covered if they’re suddenly incapacitated or experience an unexpected drop in income.

Ideally, the list should include specific details regarding the accounts. For debts and expenses, the company name, account number, due date, payment amount, and remaining balance are critical, as well as any logins or passwords. For savings, investment, life insurance, or similar accounts, the company name, account number, logins, passwords, account value, and beneficiary name are musts.

  1. Do You Have a Will (and Who Is the Executor)?

Knowing if your parents have plans for their estate helps you prepare for their passing. If they have a will, find out its location. Additionally, ask for the name of the executor, as they’ll need to be involved quickly after your parents’ passing. You should also find out if they used an attorney to draft the document and the lawyer’s contact information, giving you another resource should your parents’ copy become misplaced or damaged.

If they don’t have a will or estate plan, it’s wise to recommend they get one in place. You could help them find an attorney and offer the pay the cost, as well as accompany them if that makes them more comfortable.

  1. Do You Have a Life Insurance Policy?

Ideally, information about any life insurance policies should be on the list of accounts. However, if you don’t see a life insurance policy, ask about it directly. If your parents are still working and have a policy through an employer, they may have forgotten to include it in their list, so it’s wise to follow up.

  1. Do You Have a Financial Power of Attorney?

A financial power of attorney gives a person the ability to name someone who can make financial decisions for them if they are incapacitated. Finding out if they have a financial power of attorney in place and who is named on the document is helpful. Then, if there’s an emergency, you know who is able to handle certain activities and make various decisions.

  1. Have You Had Any Trouble Remembering to Pay Your Bills or Balancing Your Accounts Lately?

While anyone can make a mistake on occasion, if your parents are forgetting bills or struggling to balance their accounts regularly, that could be a sign of mental decline. Many older adults with memory issues have trouble tracking their obligations. Additionally, they may struggle to handle the calculations involved in balancing their accounts or may have difficulty keeping tabs on the date.

If they are having difficulties, it’s wise to create a plan to ensure their financial life remains on track. Also, speak with them about scheduling an appointment with their medical provider to determine if there is an underlying cause.

  1. Where Do You Keep Your Financial Paperwork?

If your parents pass or become incapacitated, you may have a need for different kinds of financial paperwork. For example, you might require deeds to certain property, account statements, or past tax returns. By asking where they keep that information, you’ll know where to look should the need arise.

  1. How Do You Typically File Your Taxes?

Knowing how your parents usually file their taxes is beneficial. Not only does it give you a source of records, but it also lets you know if they’re receiving help or handling the work on their own. Plus, it could make filing any final tax returns easier if you can turn to the same method, though this isn’t always the case.

  1. Do You Have a Safe Deposit Box?

Many people use safe deposit boxes to store valuable items. If your parents have one, find out which institution it’s at, the location of the key, and any other details that help you access it after their passing or as an approved financial representative.

Without the location information, tracking down a safe deposit box can be tricky. Similarly, if you don’t have a key, getting access requires extra steps. You may have to pay a fee to have it drilled. Additionally, if they don’t have the ability to drill the lock on-site, you might have to wait to access the contents, which may not be ideal.

Can you think of any other financial questions you need to ask your parents now? Share your thoughts in the comments below.

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What New Year’s Resolution Can Help You Meet Your Financial Goals?

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New Years Resolution Financial Goals

With the new year approaching quickly, New Year’s Resolutions are on many people’s minds. If your goal is to improve your financial situation, choosing resolutions that can help you head in the right direction is wise. While the exact objectives you set may vary depending on your personal situation, there are many that work well for most people. If you’re trying to meet your financial goals and don’t know what New Year’s Resolution Financial Goals, here are a few to consider.

Create and Follow a Budget

If you do nothing else in 2022, make this the year that you create and follow a budget. With a budget, you get critical visibility into your finances. Plus, it allows you to generate a plan in advance that can propel you toward success, giving you a roadmap to follow as you strive for other  New Year’s resolution financial goals.

In many cases, creating and following a budget is easy. You can use websites or apps that allow you to set spending limits and track your activities, or even go with a simple spreadsheet to monitor your income, savings, expenses, and debt repayments. That way, you’ll know where your money is going, allowing you to gain better control over your financial life.

Pay Yourself First

When most people receive their pay, they focus on handling debt payments and household expenses. While tackling those costs is essential, it’s wise to start at a different point. By paying yourself first, you set yourself up for financial success, ensuring that saving is a priority.

Typically, paying yourself first can involve a variety of approaches. Along with dedicating money to retirement, stashing money in an emergency fund qualifies. Ideally, you want to commit at least 15 percent of your income (including the employer match) to retirement and have three to six months of living expenses set aside. That way, you’re ready for your golden years and can easily navigate the unexpected.

You can also focus on goal-oriented saving as a form of paying yourself first. For instance, setting money aside for your or a family member’s education can count, as well as funding a large purchase, vacation, or something else. However, those goals should only fall in this category if your income genuinely supports it. Otherwise, you could be creating a hardship.

Eliminate Extraneous Recurring Expenses

Recurring expenses can easily fall off of a household’s radar, particularly if they’re smaller. Costs like streaming services (both audio and video), fitness center memberships, magazine subscriptions, and similar expenses chip away at your budget. If they aren’t providing you with enough value, then it’s best to cancel them immediately.

There are tons of small expenses that can crop up as part of daily life, from online payment fees to bank account service fees and credit card interest. It’s easy to not pay too much attention to these, but they can add up over time and put a strain on your budget.

Make reviewing your accounts to identify and eliminate extraneous recurring expenses a priority this year. That way, you can free up a little bit of cash without much effort, giving you a quick financial win.

Tackle High-Interest Debt

High-interest debt is a significant burden that makes it harder to achieve your other financial goals. If you have high-interest credit cards, personal loans, payday loans, or similar debts, make conquering them a priority.

In most cases, going with either the snowball or avalanche method is best. With the snowball, you focus on your smallest balance first, putting as much money toward it as possible and making the minimum payment on every other debt. Then, when you pay that balance off, you redirect all of the cash you were sending there to your new smallest balance debt.

With the avalanche approach, you choose the debt with the highest interest rate to focus on first. It’s a more cost-effective option, allowing you to pay the least amount of interest possible. However, if that debt is large, it lacks the quick win you can get with the snowball method. As a result, it’s best to choose the option that will keep you motivated, ensuring you stick to the plan long-term.

A side benefit of tackling debt is that it usually boosts your credit score, too. If improving your creditworthiness is a priority, you can use this resolution to make it happen.

Learn About Investing

Once you have your retirement account funded, a solid emergency fund, and no high-interest debt, it’s time to think about investing. That way, you can help your money grow faster, potentially allowing you to retire early, live more comfortably, or accomplish other financial goals.

While you may be tempted to jump right into the world of investing, learning about it first is a better bet. Spend time familiarizing yourself with the fundamentals, such as the differences between bonds, stocks, ETFs, and other investment vehicles. Learn about risk mitigation techniques like diversification, as well as how fees and commissions can eat into your earnings. Find out about the tax implications of making withdrawals or trades, ensuring you’re prepared for what occurs.

Once you’ve taken a deep dive into investing, you can determine how you want to proceed. You may be comfortable with a self-directed approach, especially with the number of robo-advisors available that can help you create a portfolio based on your priorities, risk tolerance, and more. If you aren’t, then it’s best to research financial planners in your area, allowing you to find an expert that can help you make choices that align with your risk tolerance and goals.

Define Goals That Align with Your Priorities

While the resolutions above are great starting points, they are based on classic advice and personal finance best practices. As a result, they may be inspiring to some but not connect well with others whose financial situations make those steps unnecessary or poor fits.

If you’re already doing everything above or those objectives aren’t a great match for you, that doesn’t mean you can create New Year’s Resolutions that will allow you to achieve your goals. Just spend some time genuinely defining what you want to accomplish financially. That way, you can create personalized resolutions that speak to you on a deeper level.

Get Specific and Make Objectives Actionable

Ideally, you need to get specific and make your objectives actionable. For example, instead of saying you want to “spend less money” or “save more,” go with goals like “reduce my monthly dining out spending by 20 percent” or “increase my savings account balance by $2,000 within 12 months.”

Then, add in why you want to make those things happen. For instance, the goals above might turn into “reduce my monthly dining out spending by 20 percent, allowing me to pay down my high-interest credit card faster” or “increase my savings account balance by $2,000 within 12 months so that I can launch my new business.”

By resolving to spend time genuinely identifying your priorities, you know what targets will motivate you to keep making smart financial choices. In the end, you’re increasing the odds that you’ll stay on track because you know the “why” behind your actions. It’s simple yet powerful, so take the time to determine your priories as the new year begins.

Are there any other New Year’s resolution financial goals that can help  you have a successful year? Did you use any of the options above and find them effective? Share your thoughts in the comments below.

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Now is The Time to Get Prepared For Tax Season-Are You Ready?

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get prepared for tax season

As the new year draws nearer, it means that tax time is also on the horizon. While many people assume that you don’t need to prepare in advance, getting ready now has benefits. It lets you ensure that you can gather all of the information you need and make certain critical choices, simplifying your filing when the time arrives. If you want to get prepared for tax season, here are some tips that can help.

Decide How You Want to File

One step that you likely want to take now is deciding how you want to file. That way, you can make arrangements in advance, if necessary, ensuring you can use your method of choice.

If your taxes are straightforward, using online tax software and e-filing could be your best bet. Many online solutions are easy to use and can handle most basic tax situations, allowing you to tackle the paperwork confidently. For those with simple taxes that fall within the income limits, you may even be able to handle your filing using an online service for free, which is a boon.

If your tax situation is inherently complex or changed significantly during 2021, then you may want help from a professional. In that case, you’ll want to start researching your options immediately. Many CPAs or similar tax professionals have limited room in their schedules during tax season. As a result, you want to be able to make arrangements early, ensuring you can secure a spot.

Start Gathering Documents

While many tax documents won’t become available until after the start of 2022, there are some that you can start pulling together now. For example, if you have business or healthcare expenses that might be deductible, get your receipts and other associated records gathered now. That way, you can get a jump start on your tax preparations, ensuring you aren’t scrambling when it’s time to file.

You may also want to review your income records. If you have pay stubs, paid invoices, or similar documents available, get them together. The same goes for any quarterly tax payments you’ve made throughout the year if you’re self-employed or earn income from a similar arrangement. That way, you can use the information to estimate what you owe in comparison to what’s been withheld or paid. Not only does that decrease the likelihood of a surprise sizable tax bill when you file, but it also gives you a chance to pay what you owe now instead of risking penalties for being behind.

Check Out Available Tax Breaks

There are many scenarios that can make someone eligible for a tax break. Along with business and healthcare expenses – as discussed above – charitable donations, having a home office, using your car for work, or other situations may lead to deductions or credits.

Spend some time exploring the various tax breaks. That way, you can see if you’re accidentally overlooking an opportunity to save that you’re allowed to seize and will have time to pull together any information you need to claim it when filing.

Learn How Life-Changing Events May Impact Your Taxes

Certain life-changing events can have a significant impact on your taxes, causing what you owe to change dramatically in comparison to the previous tax year. Getting married or divorced both fall in the category, as well as adding or losing a dependent.

Buying a house, going to college, or losing a job also alter your taxes. The same goes for retiring from the workforce and tapping your retirement accounts. In some cases, certain health-related changes – such as going blind – may impact what you owe. The same goes for being affected by a natural disaster.

Usually, it’s best to consider all of the life-changing events you experienced during 2021. That way, you can look into how they may affect your taxes when you file, ensuring you’re ready for the impact in advance.

Review Your Stimulus and Advanced Child Tax Credit Payments

In 2021, some unique events occurred that may impact your taxes when you file. First, a stimulus payment went out in March. If you received one, you’d simply note that when filing. However, if you didn’t, you may qualify based on your 2021 return. As a result, it’s critical to check and confirm if you received a payment to ensure you can note that when filing.

Similarly, taxpayers that received advanced child tax credits will need to review what they received during 2021. That way, it can be appropriately represented on your taxes. While the IRS will send out notifications, like in January 2022, it’s best to research the situation ahead of time. That way, if there’s a chance that you were overpaid, you can prepare for that.

Max Out Retirement and HSA Contributions

Mazing out your retirement contributions is a smart move as the year draws to a close. If you’re adding money to a tax-deferred account, you’ll also reduce your taxable income for this year, lowering your tax bill for 2021.

The contribution limits for 2021 are $19,500 for 401(k)s and $6,000 for IRAs. However, those who are eligible for catch-up contributions can add another $6,500 and $1,000, respectively, so keep that in mind.

It could also be wise to contribute more to your health savings account (HSA) if you have a high-deductible plan. With those, you can deduct the contributions when you file your taxes, as well as secure tax-free earnings and withdrawals if you use the money for qualifying health-related expenses.

Do you have any tips that can help someone get ready for tax season? Do you feel prepared for the upcoming tax season, or do you wish that you had more time? Share your thoughts in the comments below.

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Divorcing and Drowning In Debt? Take These Steps Now!

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divorcing and drowning in debt

Whether you’re preparing for an upcoming divorce or the proceedings are already underway, ending a marriage when you’re also overrun with financial woes isn’t easy. However, that doesn’t mean you can’t come out of the other side in one piece; you just need to use the right approach. If you’re divorcing and drowning in debt, here are some steps that you should take immediately.

Assess Your Financial Situation and Start Planning

Before you do anything else, you need to take a close look at your financial situation. You’ll want to review all of your current income sources, expenses, and debts. That way, you can create a functional budget that will serve you as well as possible until your divorce finalizes.

Until that day arrives, your goal should be to simply remain afloat, particularly if it isn’t clear who will assume responsibility for specific debts. Concentrate on making minimum payments on the debts only, ensuring you can keep your credit intact.

If you have extra money that you’d like to put toward debts that may be your responsibility after your divorce, you may want to open a new savings account in just your name and set it there instead. However, you might need to review local divorce rules and regulations in your area first to make sure such action isn’t barred or viewed poorly during proceedings.

Additionally, you may want to estimate how your situation will change once your divorce is final. In some cases, this is fairly straightforward if you know what debts you’ll be taking over alone. However, if you don’t, then you might want to explore several scenarios. That way, you can get a general idea of how your financial life may change once everything is finalized.

Avoid Adding to Your Debt

If your debt situation is already challenging, don’t make it worse by adding more to the equation if it isn’t absolutely necessary. Ideally, you want to use cash for all of your necessary expenses. That way, you aren’t increasing balances before your divorce is finalized.

If you can’t avoid using credit cards to handle necessities, then limit your spending as much as possible. Superfluous spending could backfire when it’s discussed in court, so you want to make sure you’re only using credit when you had no other choice, and the charge is easy to justify.

Review Your Credit Report and Score

One step many people in the middle of a divorce overlook is reviewing their credit report and score. However, it’s a vital task, especially if you may soon be exploring options for dealing with a significant amount of debt. It lets you know your general standing, making it easier for you to estimate whether you’d qualify for certain financial products, like a low-interest debt consolidation loan.

You can see each of your credit reports for free by heading to AnnualCreditReport.com. When it comes to your credit score, you may have options for checking that for free, too. Some credit card accounts or banks let customers review their scores for no additional cost. There are also a few apps that give you access to scores.

Just keep in mind that you’ll want to review your FICO score if you may be looking for credit soon, as that is the one that lenders typically use. Many free credit score options show you a VantageScore instead, which doesn’t match your FICO score. If you aren’t sure where to get your FICO score, you can get your Experian FICO score for free through Experian. While that only covers one of the bureaus, it can work well as a starting point.

Redirect Your Income to a New Account

If you’re concerned about your soon-to-be-ex having access to all of your income, you may want to open a new checking account and have your direct deposit shifted there. That way, they won’t have access to your pay, giving you more control.

However, you may want to consult with a lawyer as you take this step. Completely cutting off your spouse could come with consequences, particularly if they don’t have their own income, are providing care for your child during the divorce, or certain other conditions apply. An attorney can help you determine how you should ultimately proceed, ensuring you act appropriately as the situation unfolds.

Prepare to Update Your Credit Accounts

Usually, there are two moments when you may need to update some of your accounts. First, as soon as you separate, taking your spouse’s name off of certain accounts could be wise. For example, if they are an authorized user on a credit card that is in your name, you may need to remove that authorization. That way, your soon-to-be-ex can’t run up a bill that may ultimately become your responsibility.

However, you may want to speak with a lawyer before you being removing their access to the accounts. Rules regarding debt ownership during a marriage vary by location, and an attorney can give you insights into that. Additionally, they can help you see how taking them off certain accounts could be perceived in court, ensuring any action on your part isn’t viewed as malicious.

When you have your divorce decree, you’ll have a roadmap outlining which debts are whose responsibility. As soon as your divorce finalizes, it’s critical to take action immediately if any particular obligation is no longer yours to handle.

If your name is on a debt that is assigned to your now ex-spouse, don’t assume that your ex-spouse will manage the update with the lender. Instead, reach out to the lender to find out what needs to happen to remove you. You may need to send in a copy of the divorce decree or take other steps to ensure you’re pulled off of the account, and some of them can take time to process. As a result, the sooner you act is good and better have splitting bank accounts.

Come Up with a Plan

Once you know which debts are yours, it’s time for formal planning. Review the obligations and your income first. Then, see if you can create a budget that lets you pay down the debts while also handling your living expenses.

If it’s tight but doable, and you already have a decent emergency fund, you may want to simply push forward. If it’s unmanageable, then you’ll want to start exploring other options immediately.

How you need to proceed may depend on your broader financial picture. If you have solid credit and a reliable source of income, exploring a debt consolidation loan could be worthwhile. Essentially, it’s a type of personal loan that lets you pay off your existing debts and replace them with a single monthly payment, at times with a lower interest rate. Just make sure you focus on loans from reputable lenders, as there are many scams in this category that you’ll need to avoid.

If your credit isn’t great or your income is limited, then you may want to connect with a credit counseling agency for help. You can find reputable counselors by using the right resources, such as the National Foundation of Credit Counseling. Then, you can get assistance with creating a new budget or may be able to debt management plan set up, allowing you to tackle your debt more affordably.

Not All Counselors Are Legit

Like with debt consolidation products, not all counselors are legit. Reputable organizations won’t push debt management plans as the first and only solution, so keep that in mind when speaking with counselors. Additionally, they’ll be upfront about their fee structures and won’t upsell unnecessary services. Traditionally, they also don’t pay counselors using a commission-based approach either.

In most cases, you want to avoid agencies that advertise the ability to “repair your credit” or that promise significant score increases in a short time. Similarly, any place that focuses on debt settlement, using phrases like “handle your debt for pennies on the dollar” should often be avoided.

You may find that a debt management plan is enough to get you back on track. If so, you’ll simply need to follow the program’s rules, allowing you to handle your obligations with greater ease.

Consider Bankruptcy

If repaying your debt just isn’t possible, then you may need to explore bankruptcy. However, this should be treated as a last resort, as the harm to your credit is significant and pretty long-lasting. Plus, you may need to hire a bankruptcy attorney, and that can be costly.

Still, if you’re drowning in debt and no other option is manageable, bankruptcy could be the right choice. Just make sure that you wait until your divorce is finalized, ensuring you’re focusing just on what you owe.

Do you have any tips that can help someone who is divorcing and drowning in debt? Have you been there yourself and want to tell others how you got through it? Share your thoughts in the comments below.

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Start The New Year Asking For A Raise

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ask for a raise

As the new year approaches, many professionals set new goals for their careers. One common one is finding ways to earn more money. If you’re in that camp, starting the new year by asking for a raise could be a smart move. It may let you increase your income without having to launch a job search, something that really works in your favor if you enjoy your current role and workplace. If you aren’t sure how to approach asking for a raise, here’s what you need to do. [Read more…]

Is It Time for a Financial Power of Attorney?

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When it comes to finance. Many people try to put safeguards in place to ensure that everything runs smoothly. However, not everyone has a system in place in case they become incapacitated and are unable to manage their financial lives for a period. Luckily, a financial power of attorney can address that issue. If you’re wondering what a financial power of attorney is and whether it’s time to get one. Here’s what you need to know.

What Is a Financial Power of Attorney?

A financial power of attorney is a formal legal document that gives an appointed person – usually referred to as an attorney-in-fact or agent – permission to manage your finances in specific situations. Often, the document allows the person to handle basic tasks. For instance, depositing checks, paying bills, directing insurance benefits, and similar activities. However, you have complete control over the permissions. Thus, allowing you to pick and choose what you want the person to be able to do.

The goal of a financial power of attorney is to ensure that someone can manage your financial life during an unexpected event. It’s designed to provide you with peace of mind. It will also prevent money-related issues that could occur if no one was able to handle the types of tasks outlined above.

Technically, there are two forms of financial powers of attorney. A general financial power of attorney only applies if you are not incapacitated. Usually, it’s meant to reduce the burden of a person who is struggling to manage all of their financial lives but is still technically able to do so.

With a durable financial power of attorney. The person you select as your agent can make decisions if you’re incapacitated. Although their capabilities end if you pass away. This version is more common for end-of-life planning, as well as addressing certain unexpected situations. This includes such as a sudden incapacitating illness. It can also be used during scheduled events, such as during planned surgeries that involve anesthesia, or to address issues relating to mental decline, such as dementia.

How to Tell If It’s Time

Generally speaking, it’s wise to have a financial power of attorney in place as part of your estate planning endeavors. By getting a durable financial power of attorney in place, you’ll have an agent who can act on your behalf should you become incapable of managing your finances.

Since events like accidents, illnesses, strokes, and other potentially incapacitating issues can occur without notice. Being proactive is best. Regardless of your age or family situation. Having a durable financial power of attorney ensures someone can handle critical tasks either until you recover or until your passing. Which can prevent a range of financial issues.

However, if you’re waiting for a triggering event, preparing to undergo surgery could be one. Since going under anesthesia is risky and there may be decisions that need to be made during the procedure, setting up a durable financial power of attorney before the surgery is wise.

Similarly, if you’re diagnosed with a degenerative condition that will impact your mental capabilities, you’ll want one then as well. Setting it up while you’re of clear mind is always best, as it increases the odds that your chosen agent will be respected once your abilities decline.

Even a medical diagnosis for a hard-to-manage condition could indicate it’s time for a financial power of attorney. For example, while cancer may not directly influence your cognitive abilities, the impact of treatment and the stress of battling the condition could make you forgetful. By appointing an agent to assist you during that time, you have someone who can ensure that something important doesn’t fall through the cracks.

Picking an Agent

Whenever you’re setting up a financial power of attorney, you’ll need to select a person to serve as your agent. The decision is ultimately yours. Ideally, you want to choose someone that you trust to act in your best interest who is also capable of handling the assigned responsibilities above all else.

You aren’t limited to specific relationships with the chosen individual, and you aren’t required to favor one option over another. Depending on your situation, you could choose a spouse, family member, or friend. If the decisions relate to a business you run with another person, selecting a business partner may be wise.

In some cases, you may even want several financial powers of attorney. That way, you can divvy up various tasks between individuals that are best suited to those tasks. For example, you could ensure a spouse can handle your personal finances, while a business partner manages company-related matters.

It’s also important to note that you can change your mind and revoke a financial power of attorney. As a result, if your situation changes and you want to ensure someone can no longer act on your behalf. yYu can do so as long as you’re considered mentally sound. Then, you can select a new agent. Thus, allowing you to adjust your choice whenever necessary.

Have you set up a financial power of attorney before? If so, what prompted you to do so? If not, is there a reason you haven’t moved forward? Share your thoughts in the comments below.

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Anyone Can Become a Millionaire-Here’s How!

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Many people dream of becoming millionaires but assume that it isn’t possible. In reality, practically anyone can get on the path toward a seven-figure nest egg; you just have to use the right approach. If you’re wondering how you could potentially become a millionaire, here’s what you need to do.

Say “No” to Debt

Few things can hold you back from your financial goals quite like debt. A buy-now, pay later attitude comes with consequences. Monthly debt payments will take bites out of your budget. Additionally, you spend far more overall for the things you buy if you aren’t repaying your debt right away. That’s money you could be using to improve your financial standing essentially slipping through your fingers.

If you’re hoping to become a millionaire, saying “no” to debt is essential. Instead, focus on only purchasing essentials, saving for what you want to buy, and maintaining things you own. That way, you can focus more of your money toward your goals.

Start Investing

Gathering up a seven-figure nest egg doesn’t mean you have to save a full one million dollars. Instead, you need to set aside as much as possible using an approach that lets your money grow.

By investing early and regularly, you get to take advantage of compound interest and long-term gains. With compound interest, the interest you earn also starts earning interesting, helping even modest deposits grow.

Other types of earnings can also help. For example, reinvested dividends can boost your balance, adding a bit of something extra while you continue making deposits. Even stock value increases matter, as that’s money you make without increasing how much you’re personally saving.

Now, even though your savings can grow, that doesn’t mean you shouldn’t be setting a significant amount aside. While a general rule of thumb is to save 15 percent of your income for retirement, you may want to invest beyond that if you’re hoping to become a millionaire. That way, you can stash away as much as possible, allowing you to get to a balance that makes you happy faster.

Boost Your Income

Since you need to set money aside if you want to become a millionaire, increasing your income is a good idea. That way, you’ll have more cash to stash, allowing you to grow your balance as quickly as possible.

There are several ways to boost your earnings. You could ask for a raise if you’re exceeding expectations at work or seek out a new job where you’re paid fairly for your contributions. Volunteering for overtime is an option, as well as getting a second job or launching a side hustle.

Acquiring new skills that let you qualify for a better-paying position should also be on the table. While heading back to school could potentially help, there are alternatives. Internships, apprenticeships, and other forms of on-the-job training could do the trick. Going online and using free resources may also work.

Stave Off Lifestyle Creep

One issue with boosting your income and savings is staving off lifestyle creep. If you start thinking that luxuries are suddenly affordable, you may forgo savings and start spending instead. As a result, you may not have enough set aside to reach a $1 million balance.

If you increase your income and start thinking about moving to a new home, buying a new car, or something similar, pause for a moment. Consider whether what you’re contemplating is based on needs or wants.

If what you’re thinking about doing is a legitimate need, then moving forward may be okay. However, you want to do it as frugally as possible, ensuring you don’t end up spending more than necessary to cover that requirement.

However, if it’s a want, remind yourself about your dream of being a millionaire. That way, you can focus on your goal.

Do you have any other tips that can help someone work their way toward becoming a millionaire? Share your thoughts in the comments below.

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Should You Be Investing in Shiba Inu?

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During the past year, cryptocurrencies like Bitcoin and Ethereum have reached new heights. Additionally, Dogecoin – the most prominent meme coin around – garnered a lot of attention, ultimately having a relatively tumultuous year. Due to Dogecoin’s rise into the spotlight, many wonder if Shiba Inu – a newer coin – is a worthwhile investment. If you’re considering purchasing Shiba Inu, here’s what you need to know.

A Word About Cryptocurrency

Before worrying about whether Shiba Inu is worth investing in specifically, it’s important to understand the risks involved in putting money into any cryptocurrency. While Bitcoin and some other older coins have seen values rise, the overall crypto market is incredibly volatile. Values rise and fall rapidly, at times with seemingly very little reason for the change. As a result, money can be made or lost in mere moments, often without much warning.

Additionally, it isn’t clear how future regulations may impact the market. Since long-term investing is often based on the desire for long-term growth, changes to laws could significantly alter the viability of cryptocurrency as an investment.

Finally, cryptocurrency scams are commonplace. While Shiba Inu isn’t necessarily a scam, it’s crucial to take any new coin with a grain of salt. Without some due diligence, the odds of making a mistake go up dramatically, potentially causing significant losses.

The Pros and Cons of Shiba Inu

The Pros

One of the points Shiba Inu has going in its favor is a sense of likability. The meme-based coin has an edge on the branding front, making it feel grassroots and accessible. That perception can make Shiba Inu more attractive to certain investors, potentially boosting its potential.

Shiba Inu is also part of Shibaswap, a form of peer-to-peer-style decentralized exchange that gives investors the ability to trade a select number of coins without a traditional platform. With Shibaswap, generating yield and tracking returns are possible, leading some to take great interest in the coin.

The Cons

On the downside, Shiba Inu is technically a Dogecoin parody. Some of its popularity is placed purely on investors who appreciate meme culture and not necessarily because the coin has any real value or long-term potential. As a result, interest in Shiba Inu can be a bit fickle, ebbing and flowing quickly.

Additionally, some of the interest in Shiba Inu is based primarily on familiarity. Some investors attempted to get Shiba Inu added to Robinhood, leading to some media attention that caused a value increase. However, that coverage had nothing to do with the merits of the coin.

Unlike Bitcoin, Shiba Inu currently has no meaningful applications outside of the investment space. Mainstream companies don’t allow shoppers to use the coin as payment. Additionally, since there is nothing functionally unique about Shiba Inu, the likelihood companies will choose it as a payment option over others is slim.

Shiba Inu also isn’t in short supply. Part of Bitcoin’s appeal was that the number available is relatively small. With Shiba Inu, there are one quadrillion coins, so it doesn’t have a sense of scarcity on its side.

Finally, there has been a lot of volatility surrounding Shiba Inu. Most investors are only holding the coin for weeks, indicating that many don’t view it as a long-term investment. As a result, there’s a good chance many will move away from the coin rapidly if something else catches their attention, potentially leading to significant value declines in a short period.

Should You Be Investing in Shiba Inu?

In the end, determining whether any particular cryptocurrency is going to be a success is challenging at best. Shiba Inu does have a few things going for it, particularly when it comes to widespread recognition and its meme-friendly positioning. Plus, while it isn’t a standout functionally, it operates like many other coins, so it isn’t falling behind when it comes to use potential.

However, companies aren’t actively behind Shiba Inu as a payment mechanism, and some platforms like Robinhood aren’t supporting Shiba Inu trading at this time. That could hold back the coin, essentially limiting its potential.

Additionally, the large supply of Shiba Inu coins prevents a sense of scarcity. As a result, prices may not reach the same heights as options like Bitcoin, which doesn’t necessarily work in investors’ favor.

Inherently Higher Risk

Finally, cryptocurrency is inherently higher risk than many investment alternatives. New coins regularly emerge, drawing attention away from those that were trending in the past. Even without those, the sheer number available means there isn’t any way to determine which ones will gain broader traction outside of the crypto investing sphere. Until companies start welcoming more as a form of payment, it’s incredibly difficult to figure out which will rise and which will fall.

Ultimately, only you can decide if Shiba Inu is worth buying. Check out how to buy SHIB in Canada. If you do your research and are comfortable with the risks, then adding it to your portfolio shouldn’t automatically be off the table. You’ll simply want to figure out what’s right for you. That way, if you move forward, you’ll know what could potentially occur.

Do you think investing in Shiba Inu is a good move? Have you already bought in and want to tell others about your experience? Share your thoughts in the comments below.

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