Sarah Stewart Legal Group, PLLC

Caring, Honest, Solutions to Your Legal Needs at Affordable Rates.

Month: August 2018

7 Reasons to Budget and Tips to Do It Right

By Sarah Stewart Legal Group, PLLC

Do you have a budget? If so, you are in the minority.  A study from the U.S. Bank in 2017 found that only 41% of people living in the U.S. had a budget.

Experts agree making and following a budget is the best way to manage your money and save for emergencies, vacations, and retirement. Budgeting also relieves a lot of stress by allowing people to plan for expenses and be sure they have enough money to live each month.

If you aren’t budgeting, we’ll tell you why you should and how to do it right.

Why Budget?

(1) You Have Control of Your Money

With a budget you know how much money comes in and where it goes.  You know what you can afford each month and can make a plan to lower debt and plan for other life and financial goals.

(2) Emergency Planning

When you have a budget and know where your money comes from and where it goes, you can plan to put some extra aside for emergencies.  Have you ever had your air conditioning go out in the heat of the Summer? Have you had a pipe break, flooding your house?  Wouldn’t it be nice to have the money set aside to cover those expenses without affecting your month?

(3) Determine and Focus on Money Goals

Knowing where your money goes gives you the power to change spending habits and decide what money goals you have.  Have you always wanted to take a trip to Italy?  What would it take to get there?  Planning for that trip will motivate you to skip the coffee drive through a few times a week.

(4) Share with Your Spouse and Family

Budgeting allows you to work as a team with your family and teaches your children how to use their money wisely.

(5) Foresee Problems

With a budget, you learn the ebbs and flows of your finances and can head off possible financial problems before they become problems.

(6) Decide About Debt

Budgeting helps you decide what, if any, debt you can afford. Do you want a new car?  Can you really afford it?

(7) Adjust Spending

When you budget, you can get rid of unnecessary expenses and add the savings up for retirement, college funds, vacations, or whatever you want.

Budgeting Tips

(1) If you’re married, be sure to budget together.  It won’t do any good if the two of you aren’t on the same page about important expenses.

(2) Be flexible.  Every month can be different.  You may need to buy school supplies, car maintenance expenses, or holidays.  Be sure to allow room for these expenses in your budget.

(3) Start with food, shelter, utilities, clothing, and transportation. Your necessities are the most important.  Fill everything else in around them.

(4) Pay off debt.  The less money you owe, the more you have for yourself!  Not to mention, credit cards and loans charge interest and penalties, taking more of your hard-earned money than you can imagine.

(5) If you’re struggling with certain expenses in your budget, such as entertainment, pull out cash for the month for that category.  Only use the cash.  Once it’s gone, you can’t spend any more on that category.

If you don’t have a budget yet, sit down with your family and set one up today!

Planning for Temporary Child Custody if You Die

By: Sarah Stewart Legal Group

If we don’t plan for our assets after our death while we’re alive, the Court will take over for your family and tell them who gets what. Because of this, estate planning tools are important for everyone.   But, families with young children have even more at stake if they don’t plan properly for their children.

Traditional estate planning tools like Wills and Trusts allow parents to name a Guardian for their children if the parents die while the children are under the age of 18.  At the very least, parents should think through who you trust to care for and raise your children if you’re not there.

Though these documents are important for every young family to have,  there are other plans parents of young children may not be aware of that are just as crucial.

Sometimes when both parents have died, children can be taken into state custody, at least for a brief period.  If you want to minimize the chance of this happening to your children, you will need to make plans and arrangements with family members or friends if something happens to you.

Let’s say you go out on a date night and leave the kids with a sitter, but you get in a car accident and don’t make it home.  Who would the babysitter call? Who would care for the children until the Guardian can go to court and establish Guardianship? Getting a guardianship is a process that can take weeks.

What about young families who do not live close to their parents, siblings, or other family members?  What if closest relatives are more than 5 hours away? Where would your children go?

If you have a trusted friend you would like them to stay with until family arrives, you will need documentation granting the friend authority to keep the children temporarily.  Otherwise, child protective services will likely take them into custody.

If you are a parent or Guardian of young children, you should consider drafting a plan for your family.  You can give a copy of the plan to your proposed caretaker and keep a copy somewhere in your home that is easily accessible and that the sitter knows about.

Your children will have enough stress and trauma from dealing with your loss if you die suddenly.  Do you want to make that process even more difficult by having the state take them into custody and hand them over to strangers?

If not, get to work on your temporary custody plans for your children today!

Estate Planning: Planning for Life, Not Just Death

By Sarah Stewart Legal Group

When people think of estate planning- wills, trusts, durable powers of attorney, advance directives for healthcare, and other documents- it can often bring to mind thoughts of death. Though planning for our assets after death is an important part of estate planning, estate planning is also used to plan for you and your family’s best life.

To draft a thorough and appropriate estate plan, professionals will walk you through your plan, asking what will happen if an heir divorces, if someone dies, if someone has a child, or other important life changes happen.  They will also help you plan for illness and disability.

If you are an adult, over the age of 18, an important planning tool you will want to consider is a Durable Power of Attorney. A Power of Attorney will allow someone else to take care of your financial, and possibly medical, responsibilities if you are unable to do so yourself.  You get to create this document any way that works for you and meets your goals and needs.

Another important planning tool for any adult is an Advance Directive for Healthcare.  In Oklahoma, this is the only document that allows you to name someone to withhold life-sustaining treatment when you are unable to make decisions for yourself and other important criteria are met.  These documents walk you through 3 situations and allow you to choose the life-sustaining treatment you want, or don’t want.

Under Oklahoma law, there is no automatic authority for a spouse, child, or parent to access a family member’s information and handle their affairs.  Unless accounts are owned jointly, only a Durable Power of Attorney, or Trust where the person is named a Co-Trustee, will give companies the authority to deal with a spouse or family member on your behalf.

If you do not have a Power of Attorney and have not named an agent, your family will have to go to court to gain access to your accounts and information through a guardianship.  This is a lengthy, costly procedure that invites the Court into your life indefinitely and requires the Court to approve decisions that you may not want them involved in.

If it is important to you to maintain privacy and/or name a specific individual to help care for your health and assets, or to reduce stress and costs for your family, a Durable Power of Attorney and Advance Directive for Healthcare are a great place to start to make a plan for emergencies in your life.

If you do not have a plan in place for your life emergencies, reach out to a professional to help you get started now!

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