Tag: finances

5 things you need to do to get your life (and death) in order

5 things you need to do to get your life (and death) in order | H is for Home #law #legal #preparedness

Justin has developed a serious phobia about flying over recent years and I think it’s rubbed off on me somewhat. Moreover, it’s good to know that it can easily be overcome with self hypnosis because such anxieties are extremely excessive and irrational. Before I flew to Trinidad earlier this year (without Justin, I went with my dad) we thought it was a good time to finally get around to writing our wills. We’d put off doing it for years… for no reason in particular, just the usual ’round to it’ excuse. However, having just turned 50 – and with a 9-hour transatlantic flight on the horizon, the time seemed expedient.

Many people don’t want to think or talk about mortality and death; they find it gory, pessimistic, embarrassing or morbid. So, when we were approached by SunLife to write an article about funeral plans, we saw it as an opportunity to broach this sometimes uncomfortable subject with our readers. Here are some of the important steps to be taken to get your life (and death) in order.

Red siren illustration

In case of emergency

We’ve all heard the advice about always wearing clean underwear in case you get run over and need to be taken to hospital. But seriously, what if you do get run over or have some other medical emergency when you’re on your own?

I have a fairly new model iPhone where you can input ‘in case of emergency’ information. If you go to Settings→Emergency SOS you can insert the names & numbers of emergency contact people. You can also type in medical information such as any conditions you may have, medications you’re taking, any allergies, your blood type and whether you’re an organ donor.  Even if your phone has a passcode, this information will be accessible if someone taps the emergency button on the home screen.

Justin’s iPhone is an older model that doesn’t have Emergency SOS settings. However, there are a number of apps (most free) on iOS and Android that serve the same purpose.

Organ donation formcredit

Organ donation

From spring 2020, adults in England will need to opt out of organ donation. Prior to that though, you’ll need to register and let those nearest to you know of your wishes. I’ve chosen to be an organ donor. I signed up online and I carry a donor card in my purse. I’ve also told Justin and my parents that I’m registered.

Power of attorney typed out on paper in a typewriterNick Youngson CC BY-SA 3.0 ImageCreator

Power of attorney

Power of attorney is a legal written document given by one person or party to another authorising the latter to make decisions on behalf of and act for the former. There are currently two types that can be issued; ordinary and lasting power of attorney.

Ordinary is sufficient for occasions where you’ll be out of the country or in hospital for extended periods of time during which financial decisions may need to be made in your absence. Lasting will be needed in cases where there is dementia and other ongoing, permanent mental or physical incapacities.

Last will and testament papers

Will

You’re never too young to begin thinking about a will. Actually, that’s not true; you can legally make a will from the age of 18. If you draw one up at this age, there’s nothing stopping you updating it as you get older and your circumstances evolve and change. You want to ensure that your assets and your precious belongings (which includes beloved pets) are looked after and are passed to the people and institutions of your choosing.

There are a few different types of wills; single, mirror wills (for couples), trust wills, living wills. There’s a lot of information available online which will help you decide the best option for you. If you’re over 55, you can get free professional help during Free Wills Month (which is every March) to write or update your will.

Men in suits carrying a white coffin

Funeral plans

Do your loved ones know whether you want to be buried or cremated? Do they know if you want a church service? What about flowers or a cortège? You can create a document giving your clear instructions and requests about words to be read, music to be played, attire to be worn by you and the attendees and anything else you think is important.

Small desktop safe

And finally

Inform family members or your planned executor of where you’ve stored all your important documents and information. It’s essential to keep original copies of these together in a secure fire- & waterproof strong box or safe. Also to be included are financial papers such as bank statements, tax returns, ISAs, stocks & shares certificates, house and/or land deeds, birth certificate, adoption papers, marriage/civil partnership certificate, divorce decree absolute/civil partnership final order etc.

Have you done anything yet about life and death plans? Be willing to bring up the topic in conversation and also start preparing for any eventuality!

Organising your financial paperwork

Organising your financial paperwork | H is for Home

You’ve no doubt heard your parents say, ‘not another bill!’ when the postman makes his morning delivery. At the moment, these documents probably won’t mean much to you if you still live at home, but it’s important to know about the different types of financial paperwork you could come into contact with in the future. If you don’t understand them, you won’t be able to incorporate them into your budget, and this is where money problems arise. So, let’s take a further look…

Woman calculating paper invoices

Understanding different documents

It’s important to know how to read the most important financial documents that you’ll receive. We’ve outlined some of the most common ones you may be sent below:

  • Utility bills – Utility bills include invoices for the likes of water, gas and electricity. More often than not, you’ll receive a bill at the start of the financial year, which will outline how much you owe for the year ahead. You then have the option to pay the amount upfront or you can separate it into equal monthly payments.
  • Loan statements – If you’ve taken out a mortgage to buy a home, you’ll need to make monthly payments. You can use a home loan calculator to figure out the sort of payments you could be looking at.
  • Direct debit statements – You’ll usually only receive one direct debit statement after it’s been set up. A direct debit is a regular payment. For example, you could set up a direct debit for your electricity bill, and thus ‘x’ amount will automatically be taken from your account every month on a particular day. Once you set this up, you’ll sometimes receive a statement outlining this agreement.
  • Bank statements – Nowadays, most bank statements are accessed online; however, you can choose to have paper statements posted to you. This will show you how much money you have left in the bank, as well as your recent transactions. Most people keep on top of this with online banking as opposed to waiting for a monthly statement. Nevertheless, you may need these statements in the future, if you apply for a mortgage or rental accommodation, for example.
  • Credit statements – You’ll receive a credit statement every month if you have a credit card or if you use some other type of credit. For example, you may have an account with a catalogue company that you pay off on a monthly basis. Your credit statement will tell you how much you owe, as well as the minimum amount you need to pay off and by when. Let’s say you owe £150, yet the minimum payment is only £5. You’re advised to pay off the full £150 by the date stated; otherwise, you’ll be charged interest on the remaining £145 if you opt for the minimum payment option.
  • Pay slips – If you’re employed, you’ll receive a payslip. You’ll get this every month, fortnight or week, depending on how often you’re paid. Your payslip will reveal how much you’ve received for that period, and it will also state any deductions. These are usually PAYE tax (income tax) and National Insurance. At the bottom, it will state the ‘net pay’, which is the amount of money you’ll take home.
  • Agreements – A Letter of Agreement is a document that confirms you’re ready to enter into an agreement with someone or something. For example, if you join a gym, you may have to sign one of these. This will state that you are going to pay ‘x’ amount for gym membership, and it will state how for long you agree to do so. This is where you need to be careful. If the agreement says the membership is 12 months long, without cancellation, it means you have to pay ‘x’ amount each month, for the full 12 months – even if you want to cancel early or can no longer afford it.

Pair of red box files

Organising your financial paperwork

If your paperwork starts to pile up, you should get yourself organised, otherwise you could end up missing a bill payment or something else important. Split your paperwork up into categories and have a folder for each. Categories can include the likes of: credit cards, contracts, bills due, bank accounts, car, employment, loans, insurance and utilities. Each file needs to have four sections: bills to be paid, to do, file and shred. This will help you to keep on top of everything while also making sure you don’t accidentally get rid of any important documents.

Paying invoice online using smart phone

Summary

‘Don’t understand it, bin it’ is the wrong approach! You never know what you could be throwing away, and overdue bills can lead to further charges, which is the last thing you want. Instead, handle every piece of financial paperwork with care and have a filing system in place to keep on top of everything.

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