How Financial Readiness and a Will Can Help You and Your Family

Taking the time to have a will and to be financially prepared can make a huge difference in your and your family’s lives. It will not only allow you to plan for the future, but it will also make sure that you are properly preparing for your own funeral. As an added bonus, having a will can also save you a lot of money in the long run.

Taxes on your income

Taxes on your income can be taxing, but there are some smart ways to avoid that taxman wrath. One of the best tricks is to file your taxes electronically and to keep track of your tax obligations so that you never get caught off guard.

A smart way to do this is to take advantage of a tax preparation service, such as TurboTax. With the help of this tool, you can be sure that your taxes are filed correctly, on time and without stress.

If you are a business owner, you may be able to deduct some of the wages you pay your employees. Depending on the size of your operation, you may be able to deduct the cost of employee benefits such as health insurance, retirement plans, and even the wages of your children. In other words, you can claim some of your tax burden as a bonus, so long as you meet the requisite requirements.

Having an emergency fund

An emergency fund is a special savings account that helps you meet unexpected costs. It can be used to cover car repairs, medical bills, or unexpected job losses.

Emergency funds should be stored in a safe place. Most banks recommend saving at least three months’ worth of expenses. If you are a sole breadwinner, aim for nine to twelve months’ worth.

There are several ways to build your emergency fund. Saving money is the easiest, but you can also invest extra cash. You should consider investing in a high-yield savings account or a money market mutual fund. These accounts pay competitive yields and offer easy access to your funds.

You can start by saving $5 or $10 each paycheck. This can add up to $50 in a year. Then you can decide if you want to increase your savings by a small percentage every month.

Once you have the money saved, you should set rules and guidelines for how you use it. Ideally, you should withdraw from it for actual emergencies, such as car repair or a sudden medical problem. However, you should be willing to pay back your withdrawals on schedule.

Estate planning

If you have a large sum of money or you have a family with children, it is important to plan for the future. This can be a way to leave a legacy and secure the financial future of your loved ones.

The first step in planning your estate is to understand what you want. You may prefer to see your heirs enjoy your estate while you are still living.

A will will explain your final wishes. It will also list how you want your assets distributed. Your will may also name an executor, who will be the person responsible for settling your estate.

Your will can also specify the person you would like to name as guardian for your minor children. Make sure you select someone you trust.

Estate planning can reduce stress and help you keep your assets in your family’s hands. For example, it can allow you to specify which charities you want your assets to go to.

Testing for financial readiness

Testing for financial readiness and a will can help you and your family to better prepare for the future. With these financial skills, you can ensure that you and your family will be prepared for emergencies and can be financially stable when the time comes.

If you’re a service member, you can make use of a Financial Readiness Center to learn about the importance of budgeting and debt management. You can also receive a personal financial consultation or take a class on credit, money management and insurance. The Center provides information, as well as a budget or a spending plan to assist you with identifying your goals and developing a plan to achieve them.

If you’re a federal employee, you may be eligible for the Thrift Savings Plan (TSP), which is a retirement plan for eligible employees of the federal government. This program has a free brochure available for you to download.