Is Money Your Problem?

From my experience money is THE number one cause of PROBLEMS in people's lives. That's right, over and above everything else in life because most of those other things are caused by not having money. For instance, people get divorced, have fights, can't pay their bills, lose their houses and go to court over not having enough money or not managing it correctly.

Why do we pay money for things?

Did you ever ask yourself that question? Why do we have to have money? Why do we have to put so much emphasis on money and why do we care?

Most of those questions you can answer for yourself, but I want to give you a different view on this whole thing, lets address this question.

Why pay money for things?

Because somebody, at some point in time wanted something that somebody else had. They had a cow and wanted some chickens; they traded one for the other and they got what they wanted. At some point somebody realized that they didn't always have a cow to trade with and wanted more. They developed a way of making nifty looking coins that someone said was worth something, then they invented the almighty dollar. Now I don't know about you, but a green piece of paper that has $100 on it, doesn't seem right to exchange for a DVD player or game system. How can that piece of paper be of the same value? Because somebody said so, that's how.

So now that I answered my version of this question, is your answer the same as it was before I addressed it?

The bottom line here is that we have to have money because somebody at some point wanted something and didn't have anything to exchange for it. Emphasis is placed so heavily on it because we need it for almost everything that we do. Since we don't have a farm anymore to make our own food, or cows grazing in the pasture, we're limited in our means and have to rely on the almighty buck to get us by.

Now that I put this into a different perspective for you, maybe you can realize the real value of money, which is just a means to exchange for something you want and not a big stupid problem that absorbs your life.

How to handle money problems

Wouldn't it be nice to be free of money problems and be able to do anything that you want to do? I thought so! Here are some helpful hints on how to handle your money, so that you don't have to ever worry about money again!

Are you ready? GREAT!!

1. Understand how much you make and spend.

2. Put together a plan on how to handle your debt.

3. STOP concentrating on money all the time and concentrate on production!

4. Produce, Produce, Produce

5. Make more money

6. Take a ride to the beach and look at a sunset

7. Relax

8. Smile

9. Enjoy life

Financially Surviving Divorce

In 1999 I took the Certified Divorce Financial Analyst (CDFA) course and now realize the full potential. Divorce is an extremely emotional time and I believe it is extremely important to have someone help you with the financial aspects of divorce.

There are four basic things that you will need to survive a divorce financially: a place to live, little or no debt, retirement assets, and liquid money. You should strive for a balance of each of these. You need a mix of each of these categories, not an abundance of one and none of the others.

A Place to Live: In 1997, the tax code changed relating to home ownership. A married couple is now able to exclude up to $500,000 of gains, and a single person is able to exclude up to $250,000 of gains on the sale of their home as long as you have lived in the home for two out of the last five years.

Depending on the divorce, it may be advantageous for one spouse to take the home, while in another situation it could be a disadvantage for the spouse to take the home. You should understand how your divorce settlement will affect you now, as well as in five, ten, fifteen and twenty years from now. A house is not a liquid asset and if you look historically at the stock market, a house may have less appreciation potential compared with money set aside for retirement. This is where it is very important to establish a financial plan.

Little or No Debt: You should understand what the cost of credit means. Because there is a high cost to having debt, you need to know the difference between good debt and bad debt. You should be careful when it comes to using credit to protect your assets and your future because we live in a negative savings society. Contact credit bureaus to get a copy of your credit report. If there are credit cards that have a zero balance, call and cancel those cards.

As part of a divorce, remember that the creditor wants the debt paid regardless of the situation. So, if your spouse takes a credit card with your name on it and does not pay that debt, the creditor will come after you.

Retirement Assets: When you are looking at retirement assets there are many different vehicles in which you can save money for retirement. Make sure that you do not forget some accounts and leave money on the table.

If you receive retirement assets from your spouse's 401(k) plan you may need a QDRO (Qualified Domestic Relations Order) to separate those assets. The QDRO is a legal document that is separate from your divorce decree. This legal document is sent to the benefits department of the 401(k) plan provider to instruct them how the assets should be divided. Make sure the QDRO is written correctly BEFORE the divorce is final to ensure that you receive your retirement assets.

Some benefit plans cannot be divided. In this case, you want to look at other assets of marriage and receive those instead. For example, if a pension cannot be divided, take more of the 401(k) assets of the other spouse.

If you receive retirement assets from your spouse's IRA, you will need a copy of your divorce decree and a few other financial forms to separate those assets. With the 401(k) and IRA, you should change the account into your name and roll the assets into another IRA account. This process is known as a "direct rollover." This is another area where it is important to have a financial plan in place so you can realize the foundation you are setting for your financial future.

Liquid Money: There are three different general phases of the divorce process: The beginning of the divorce, the middle of the divorce, and after the divorce. In each of these states, your budget may be different, so you should make sure that you have liquid money available at all times.

In the beginning, you will need liquid money for the retainer to hire an attorney. You should consider putting this liquid money in a money market account rather than a savings or checking account. This is a vehicle where you are able to earn more interest on your money.

Make sure you understand what a money market account is and what it can do for you. Make sure you understand the difference between assets, regardless of whether you are single, married, or divorced. Gather as much information as you can about your financial situation. Know where your money is. Find out as much information as you can on your own. It is always a good idea to have copies of statements and to start listing all of your assets and liabilities.

While it may seem incredibly appealing to pack up everything and head for a place in the sun when you retire, going through the whole process requires a fair bit more work than most people realise. Life as an expat can be a relaxing way to spend your time after all those years working and by making sure you've got a few things covered, you know there'll be no problems. Your first steps should be organising everything in your soon-to-be old home, so don't be afraid about getting in touch with people who can help.

Be prepared for some huge changes

A major decision involves your old home; what are you going to do with it? Some people may choose to sell while others decide that rental is a good idea, as it provides a regular income that you should be able to depend on - but what if something goes wrong? You'll need to organise someone responsible to look after it on your behalf who can deal with repairs and ensure that your tenants pay their rent on time, so choose wisely.

Depending on where you're moving to, it could be a good idea to get some lessons in your new home's language. Sure, you'll find that a lot of expats think that English is enough but if you're thinking about integrating into society there's no better way to do so than being able to speak like the locals do. Don't worry if you make the odd mistake; people will be happy that you're making the effort to fit in and may even offer to help you improve your skills.

Call a wealth management advisor as soon as you can

You'll find that you're making a lot of huge choices in a short space of time, so be sure to enlist the help of professionals who can help you take a lot of the pressure off. Your finances will be up in the air, so speaking to wealth management advisors is a great idea. They'll be able to talk to you about everything from how your pension will be affected to letting you know what kinds of insurance you'll need, as well as tell you what you should be budgeting for during and after your big move.

When you're looking for an advisor, make sure that your chosen specialist is experienced in global wealth management. That way you'll know that they're skilled in helping clients who are located all around the world, rather than just in the UK, and have contacts in many countries who can help out with any issues that could arise. Ask plenty of questions and be prepared for absolutely anything, but above all enjoy your new life in the sun.