It is so important to know the 10 financial principles that can change your life is so many wonderful ways. That’s why I have been spending time covering each of the Money Mastery Principles, which build upon each other and all work together in harmony. As you apply each principle on top of the next, you will get in better and better control financially. That’s what today’s post will cover, Principle 8, and the importance of organizing all the principles to work together.
Organizing Your Finances Enables the Creation of Additional Wealth. Disorganization breeds procrastination which leads to lost opportunities. Organizing your finances means knowing where important documents are, having an estate plan for your loved ones, and knowing how to protect your assets from over-taxation, litigation, and theft.
It can be hard to know where to store important documents, but we must try. When I see someone who is not organized, it makes me sad for them. They have no idea how expensive it is to them by not being organized. I know from personal experience, when I try to get organized, as soon as I get started I realize how long it will take and sometimes feel defeated before I get anything done.
Consider this statistic, only 1 out of 7 families has a simple will. It is a well known fact we will all die. No one has gotten out of this life alive. Why don’t we get organized before we die so we don’t leave a financial mess for our family members? It’s largely because of this feeling of being overwhelmed with difficult decisions about what to do with certain things, and we give up before we have even begun.
In my 45 years of experience, I have helped many people get organized and it has made a world of difference to them to get that nagging feeling of not knowing what will happen to their money or belongings when they die off their mind and come to a place of peace, hope and prosperity. I have done this by first having them get their spending and debt under control. Once
these things are working well together, people find they are acquiring a little bit of a surplus and before long, they have money and assets they need to manage and organize so that Uncle Sam, inflation, and mismanagement doesn’t eat away everything they have worked so hard to put together.
So that’s when we get the wills and living trusts put together and name a guardian for their children. I have watched while a family was mourning the loss of their father, they knew that he had provided enough money to pay for their college, and take care of Mom and all because he had stopped being frozen by what he perceived would be hard to do, and got organized, before it was too late.
Without planning, if you have minor children and both you and
your spouse pass away at the same time, your resident state will take over and direct all the affairs of the children. And your assets and money will follow the guardians that the court appoints, during the court proceedings. Along with foster parents chosen for you, all debts become due and payable upon death. Add all the court costs and attorney’s fees and your family will pay out an additional $30,00 or more to get things settled.
Do the smart thing. For about $495 and 60 minutes you can avoid all this expense and give yourself peace of mind by setting up a living trust and funding it, then distribute copies to all family members who are involved for their records. Go to www.easylegalplanning.com and get your financial affairs organized. Then review documents once a year and make necessary changes. Contact me with questions (801) 244-5756, or peter@moneymastery.com.
