The financial consequences of death can be an uncomfortable topic to think about. However, with planning, a person can make sure that their family and loved ones are taken care of when the time does come.

Say Goodbye to Unsecured Debts
Upon death, a person’s assets pass into a legal estate in his or her name, whether or not there is a prepared will. The value of the estate is calculated by adding up all of the assets and then subtracting liabilities.

Typical Assets
Cash
Stock Portfolios
Cars
Homes
Boats
Investments

Typical Liabilities
Mortgage
Credit Card Debt
Student Loans
Auto Debt
Unpaid taxes

The first step in handling the logistics of an estate includes paying off any liabilities. If assets are greater than liabilities, the excess cash will be distributed the will’s heirs. According to state law, if there is no will in place, assets will be passed on to the nearest living family members.

If a person dies, and their liabilities outweigh all of their assets, then all liabilities will be used to pay off creditors. Then, once the cash generated from all of the person’s assets is used up, creditors will have to write off any remaining balance. If debt consolidation programs were used by the deceased, these will be required to be paid off with any assets.

For example, if someone passes away with $10,000 in assets and $20,000 in unpaid liabilities (credit card debt), then the credit card companies will receive $10,000 from John’s estate, but they will have to write off the remaining $10,000 balance. This remaining balance of $10,000 will not pass on to John’s relatives or appointed heirs.

The only type of debt that can pass on after death is debt where a cosigner is involved. If a cosigner for a student loan, home, or other type of loan dies then the other cosigner is responsible for paying the remainder of the loan.

Liabilities and Assets
Oftentimes, a person will be leave a home or other significant asset to a loved one, but the person will also have liabilities that need paid off. In this situation, the heir may sell the home in order to pay off the remaining liabilities, or the person could opt to pay off the liabilities and keep the home. This is often the case if a person inherits a home that is paid off, but there is a small liability of a few thousand dollars for an unpaid credit card, etc. In this case, it makes sense to keep the home and pay the credit card off in cash.

With all liabilities paid off and a prepared will and testament, a person will be ensuring that their loved ones receive the maximum financial advantage during in an otherwise very difficult time.

~~~~~~~

witten by: Monique Rowe

Brought to you by Secureloanconsolidation.com

Normally when people talk about being frugal, they offer lots of tips about how to cut back on spending, how to make the most of leftover food and other ways you can tighten your belt to save cash. This is all really helpful, but there are also other options that you could utilize. It might sound like a slightly odd option, but making clever choices when it comes to deciding how to invest your money could be a very good way to go.

Of course, we should be up front when we say that with any investment, there also comes a risk because you’re investing your money in something – usually the stock market – that can go both up and down. So you need to be aware of this, and investments might not be for everyone, but once you’ve decided to take that step, which kind of investment should you go for?

There are loads of different products out there, but the investment ISA is probably one of the most popular options of all. One of the main reasons for this is that ISAs offer you tax efficient savings. This means that when you earn dividends on a shares ISA (or interest on cash ISAs), you don’t have to pay any tax on them in the same way that you would have to pay tax on other forms of savings and investments.

Therefore, you get as much as possible out of your investment, and making the commitment to save a little bit each month can certainly add up in the long run. Also, even though the stock market can be shaky from time to time as you’ve no doubt seen plenty of times on the news, it is generally more likely to rise in the long term, so as long as you’re able to make a time commitment to your shares ISA, there’s every chance it will serve you well.

ISAs have been around for just over a decade now and their popularity has grown hugely over time. Something else that has grown is the annual limit, which is the amount you are able to invest in the best stocks and shares ISA each year. For the 2012/2013 tax year, that amount is £11280 (you can save up to half of that in a cash ISA if you want to). The annual limit is also linked to inflation, which means that it rises every year and ensures that the value of your money is not affected by a change in inflation.

This makes it a pretty savvy way to save and a good way to invest as it is very tax efficient. There’s also a wide range of ISAs to choose from so if you are worried about the risk involved, you can go for one with a lower risk attached such as an ISA that invests in government gilts. Overall, they make for a very good way to invest your money and the ideal first step for anyone who is looking to make the most of what they’ve got while simultaneously looking to make the move into investments.

~~~~~~~

written by: Monique Rowe

sponsored

And the gas prices, they keep going up and up. The world economies can’t seem to come to any sort of agreement about regulating those prices. Every political tension in oil rich areas is a cause for gas prices to go up at the pump. It seems there is no end in sight. The only thing you can do is to find some awesome ways to save money on gas when you are driving.

It’s because driving is a must in our society. In the big cities, as the prices of housing went up, the affordable housing was found in the suburbs. Moving the family to the suburbs meant more room, but more driving as well. Commuting to work has its costs; the wear and tear on the car, gas prices or the train tickets if you take the train.

The car manufacturers are not in a hurry. In the United States there is a standing order that by 2025, all cars manufactured will have to have a standard of at least 54 mpg. But that is many years and many administrations in the future. So the car manufacturers are looking for different ways to go with the popular demand and the soaring gas prices; they manufacture hybrids.

A recent look at the hybrid vs. traditional car, done by ABC News, shows an amazing fact; 2 cars that look the same, both Hyundai Sonatas, come in hybrid form, which does up to 48 mpg, and a gas car that does 40 mpg. The price of the hybrid is $4,000-5,000 more than the gas car. It will take the average consumer 12 years to make up the difference.

The less gas we’ll buy, the better off we’ll be. With less demand, prices are known to go down. And saving some money on every use of the pump has a tendency to accumulate over time.

Here are 8 awesome ways to save money when you’re driving:

These are simple tricks you can easily adapt to without feeling like a scrooge. Many experts from different parts of the world basically recommend the same things. Do those things for a month and see if it doesn’t change your gas budget.

1. Keep your car in good shape. If you want to save money, your car has to run properly. It means oil changes at the right times, filter changes (the air filter is one of the things that influence gas consumption the most) etc. If a warning light comes on, don’t ignore it.

2. Keep your tires inflated. When President Obama said in the 2008 elections that one of the way to save gas was to keep your tires inflated, his adversaries jumped on the occasion and ridiculed him. “That is the way to save the economy”, they said, “with air…” Turns out Obama was right. A big factor in gas expenditure is the area where the “rubber meets the road”. Maintaining proper tire pressure will ensure less friction with the road, and less gas needed to move it forward.

3. Don’t top off or overfill. When filling the car up, there are a few things you should not do; don’t top it off or overfill. Why are people doing it? It only pollutes the atmosphere and makes the car smell. Make sure to close the cap tightly because gas evaporates. How much should you fill is a question that is still debated. Some say opening and closing the gas cap will make you lose some gas and you waste time with driving more often to the gas station. Others say that filling half a tank and maintaining between half and quarter tank is better because;

4. Lose weight. You want to make your car as light as possible. Half a tank will reduce the weight. For the same reason you shouldn’t carry heavy loads in your trunk unless you need them right away.

5. Reduce drag. If you have a roof-rack and you don’t use it often why not remove it? The more aerodynamic your car is the less gas it’ll need.

6. Plan your errands. Before you set out to take care of a few things, make a driving plan that will save you time and money. Can you park at one location and walk to the next one? It would be good for your health as well, not just your pocketbook.

7. Coast to red lights. If you have a ‘lead foot’ and it is constantly on the gas pedal, you are wasting gas. Think of the law of inertia – objects that are in motion tend to stay in motion. It takes much more gas to move the car forward from a stopped position than speeding up from a rolling position. Look ahead; is there a red light in front of you? Take off your foot from the pedal and coast to the light. It might change by the time you reach it and all you’ll have to do is accelerate lightly. Use the terrain for coasting. If you are going at an incline, don’t push it; let the inertia take its course.

8. Don’t idle unless it’s cold. It used to be that experts said not to turn off your car when you have to wait, because starting it anew will take more gas. That is not true anymore. The newer fuel injected cars don’t take that much more gas. Experts recommend to turn off the car if you have to wait more than 2 minutes with the car idling. You’ll save on gas and we’ll all have less pollution. All that does not apply in cold weather, you’re better off idling than turning the car off and on and waiting for it to warm up.

Whether or not the air-condition plays a part in saving money when you’re driving is still not clear. Some say that the drag you’ll get from opening the windows will cost the same as having an aerodynamic car that uses air-condition. Until that is settled, why not drive without the air conditioning while you’re driving on city streets, and with air-condition when driving of highways and noisy areas?

~~~~~~~

written by: Ally

Ally is part of the team that manages successful personal finance websites in Sydney, Australia, including Budgeting Spreadsheet and How to Save Money. Before joining BS & HSTM, she was a Media Planner in McCann Worldgroup Philippines, Inc., with award-winning executions, including the Levi’s 501 “Live Unbuttoned” global campaign.

~~~~~~~

Image courtesy of: Michelle Meiklejohn / FreeDigitalPhotos.net

That’s right, how much is your weekly allowance, not your children’s!

If your idea of a household budget is simply making sure your checking account isn’t overdrawn, it’s time to put pen to paper! Take time this week to establish a written household budget. It’s basic math:

Here’s how…just start filling in the blanks! (keep in mind that some income & expenses may not apply to you…e.g. alimony!)

Step 1 – Start with total monthly income:

• Salary

 

• Spouses salary

 

• Child support

 

• Alimony

 

• Other

 

Step 2 - Next, list your monthly fixed expenses:

• Mortgage/rent

 

• Insurance (auto, home, life, health, disability,dental, long term care)

 

• Car payments

 

• Child care

 

• Clothes

 

• Memberships (country club, pool or fitness center)

 

• Lessons (piano, dance, etc.)

 

• Cleaning service

 

• Lawn service

 

• Pool service

 

• Loans (home equity, student, credit cards)

 

• Savings (college, retirement, vacation, emergency)

 

Step 3 - Some expenses tend to fluctuate, so calculate the average monthly expenditure of the following:

Now the fun part…simply subtract your total monthly expenses from your total monthly income.

Take a long, hard look at this number because that’s your monthly allowance – it’s the amount you should be living on every month…food, fun, gas, dry cleaner & all those everyday expenses! Please keep in mind that the average family of four spends $800 – $1000 per month just on food! If that seems like a lot of money, you’ll be surprised how fast it goes! Those daily trips to Starbucks add up fast!

Let The Budget Diet begin! If your monthly allowance is $1200, get $300 out in cash each week, and when it’s gone, it’s gone! You’ll have to start thinking twice about every purchase, and you just might find yourself clipping coupons or shopping at garage sales to make your allowance last!

If you’d like personal feedback or if you need more detailed instructions…

Sign up for The Budget Diet Boot Camp – it’s a serious of 4 budget challenges designed for serious savings!

Or, consider reading a book on budgeting!

~~~~~~~

Image courtesy of: Ambro / FreeDigitalPhotos.net

Benjamin Franklin once said, “Beware of the little expenses; a small leak will sink a great ship.”

Those little expenses really do add up, and The Budget Diet was recently featured on KHOU-TV Houston with simple money saving tips. If you cut your expenses by just $11 a day, you’ll save $4000 in a year! Learn a few ways to cut those little expenses – check out the video!

Video: Money-Saving-Tips

Financial experts suggest keeping 3 – 6 months of living expenses in an emergency fund, but what exactly constitutes an emergency?

• Loss of job
• Major illness
• Huge unexpected expense

 
The loss of job and major illness are obviously emergencies, but then we get into a gray area when it comes to unexpected expenses.

Let’s suppose your flat screen TV breaks…this is not an emergency!

What about the $200 dishwasher repair? Again, this is not an emergency.

Certainly those new tires you need for your car constitute an emergency? Sorry, you can’t dig in to your emergency fund!

These three examples are what The Budget Diet refers to as “oh no” expenses or “life happens” expenses. Month after month, year after year you need to budget for things like tires, auto repairs, home repairs, vet bills and medical bills. How many times have you said, next month I’ll get back on track with my budget because I won’t have a car repair, and then next month comes and your air conditioner breaks? Consider “oh no” expenses or “life happens” expenses something you should count on every month, and then you won’t have any surprises. I’ve been budgeting this way for over 20 years, and not a month has gone by with some sort of “oh no” expense!

So, what should I use my emergency fund for other than job loss or major illness? Everyone’s financial situation is different, so I suggest setting a dollar limit. For example, any unexpected expense over $1000. The key word is “unexpected.” If you’re driving around in a car with 200,000+ miles, you need to be financially prepared for the day it lives it’s life!

If you dig into your emergency fund too often, it won’t be there when you really need it?

Please leave a comment to let me know how you budget for “oh no” expenses or “life happens” expenses.

~~~~~~~

Image courtesy of: digitalart / FreeDigitalPhotos.net

Let these 5 great frugal living quotes motivate you to spend less and save more!

“Beware of little expenses, a small leak will sink a great ship.” –Benjamin Franklin

“A bargain ain’t a bargain unless it’s something you need.” –Sidney Carroll

“Too many people spend money they haven’t earned, to buy things they don’t want, to impress people they don’t like.” –Will Rogers

“We make ourselves rich by making our wants few.” –Henry David Thoreau

“He who does not economize will have to agonize.” –Confucius

~~~~~~~

photo courtesy of FreeWebPhotos.com

This is a Sponsored post written by me on behalf of Dollar General for SocialSpark. All opinions are 100% mine.

Dollar General is getting into the March Madness hoopla, and it means big savings for you!  Coupon Queen’s, get excited because It’s time for Dollar General’s Bracket of the Brands where everybody is a winner – unlike the bracket you play in your office!  Yes, everybody that plays gets a coupon for their favorite brand.

Here’s how it works:

1. Visit Dollar General’s facebook page and “like” them.
2. Pick your favorite brand – choose from brands like Suave for Men, Axe, Ritz and Planters.
3. Play a fun trivia game where you answer 3 questions about your favorite brand.
4. Get  Dollar General coupons for your favorite brand even if you don’t answer the questions correctly!
5. Enter to win a grand prize trip to the NCAA Basketball Championship on April 2 at the Louisiana Superdome in New Orleans along with Dollar General gift cards.

This week’s Bracket of the Brands is between Ritz and Planters, so I chose Ritz.  I’m apparently not up on my Ritz Cracker trivia, scoring only 1 out of 3 which classifies me as a “bench warmer!”  The good news is the bench warmer still gets a coupon!  I’ll try my luck again next week in round 3 of Dollar General’s Bracket of the Brands, and I’ll happily print another coupon!  

Get in on the March Madness and enjoy the big savings at Dollar General with their weekly coupon giveaway in Bracket of the Brands.  By the way, the coupon amounts increase each week, so play often and save more!  

Dollar General’s Bracket of the Brands ends March 25th.