Last week I talked about "The Budget Constraint"; An economic term discussing the link between spending and income and what the consumer can afford. The bottom line is, it's easier to spend money than it is to make it. We're instinctively inclined to want to spend more and save less. In fact, we only start to spend less because we're constrained by our income. Should this be a valid reason to start spending less? No!
Part of enjoying life has to do with being financially secure; this includes saving money at an early age and planning your Estate; you don't have to be a millionaire to plan your estate. For those that don't make a ton of money, there are still some things you can do to plan your estate...
Please join Banker Girl as she talks about "The Poor Man's Will" in a post titled:
Why A "Poor Man's Trust" Might Be Right For You!
Here's an excerpt from her post: (Quoting Banker Girl)
POD is the bank acronym for Payable on Death - the common name for the Totten Trust. I feel strongly that everyone with a net worth under $1 million should add a POD beneficiary to any account or stock on which they are the sole account holder. I typically recommend the POD option to clients that fit the following demographics:
- Anyone with a negative net worth
- Young people with high student loan balances but significant savings or income
- Retirees with no real assets outside of their bank accounts
By adding a POD beneficiary to your bank account, the account proceeds circumvent probate.
And remember, it's never too soon to start saving early! Just read:
A Small Encouragement from Advanced Personal Finance...his daughter is already getting a head start!
*Disclaimer: Ricardo Bueno is not a Financial Planner. The links referenced here are a resource for you but they should not be taken as financial advice as circumstances vary. Please consult your Financial Planner or other Licensed Finance Professional when making any investment decisions.
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