There is a fine line between simplifying and misrepresenting financial concepts. Sometimes, the topic of finance can be somewhat complicated because it involves math or other complex terminology. When giving advice, people tend to oversimplify which can be somewhat misleading. However, with the development of new tools and software, many financial duties are becoming simpler than ever. The following three financial issues are vital, yet not nearly as complicated to handle as you might think.
In the big picture, budgeting simply means being aware of how and when you are spending your money. With new technology like online banking and debit cards, it is really not that difficult to do. Or, if you are less technologically inclined, you still have the option of saving receipts and calculating your spending by hand. In either case, budgeting is all about making sure that you are spending no more than you are bringing in. If you realize that you are spending too much, find a place that you are willing and able to cut back. If you are spending less than you are making, consider starting a savings account where you can set aside an emergency spending fund or money for future expenses. So long as you are spending less than you are making, you are budgeting correctly.
Although the tax process may seem complicated, if you have only one source of income you can definitely do your own taxes. There are many books available to explain various credits and unusual deductions, however, these are usually directed more toward business owners who typically will end up paying someone to do their taxes anyway. There are many tax software programs out there that make the process incredibly simple. Some of these programs will also prompt you to consider deductions you may not know about yet.
Estate planning is nowhere near as complicated as it sounds, especially if you have more debts than assets. For those who do not have a large estate, it basically comes down to a well thought out will and enough life insurance to take care of loved ones you leave behind. The best plan of attack when forming an estate plan is to work through a will kit before contacting an attorney. Your estate planning should not stop here, but a kit will give you the opportunity to organize the basics before your attorney can handle the more specific legal nuances. An estate-planning attorney is there to make sure the legal aspects of the plan are in line, but in the end estate planning is really about your wishes.
Because handling financial issues may seem like a daunting, complex task, many people neglect the issue altogether until they are in a crisis. In reality, these things are becoming easier than ever with the development of new software and information available over the Internet. In the end it is so much better to handle financial duties head-on before you get in a more difficult situation that may require the help of a professional.
Darol Tuttle’s focus is on three highly specialized areas of the law: Elder Law, Estate Planning and Veterans Benefits Planning. Darol Tuttle's law offices are located in Washington State: Tacoma, Washington and Kirkland, Washington. These locations are conveniently located for residents of Seattle, Edmonds, Kent, Gig Harbor, Federal Way, Bellevue, and Olympia.