Money: Having it & Keeping it
It is often heard about when celebrities make money mistakes because they are often big, expensive and make headlines. But what are some setbacks for average people? Studio Brow would like to let you some valuable money lessons learned, below:
1. Be sure to pay Your Taxes
When it comes to taxes, back taxes and tax evasion, famous folks like Willie Nelson, Leona Helmsley and Wesley Snipes are a few who come to mind. In life, there are two certainties: death and taxes. Every year, people must file their taxes by April 15. If they cannot make the deadline, they can file an extension that gives an extra six months to get everything together. Still, an extension would need to be filed. If a person owes the government money, it is required to pay the best estimate, which needs to be at least 90 percent accurate of the taxes that are thought to be owed on April 15 or be hit with interest and penalties on any the balance that is due.
2. Try to Know and Investigate Where Your Money Goes
It is hard to trust financial advisors with money; they really should not be just anyone. Be diligent and careful when deciding a broker, financial planner, financial planner, car dealer or mortgage lender.
3. Do Your best to Live within Your Means
Typically, living beyond a person’s means brings to mind the thoughts of big and fancy homes. Housing costs should not exceed 25 to 28 percent of a person’s monthly income. A good pre-purchase method would be to use Zillow’s affordability and monthly payment calculators.
4. Be Protected When Going Into Marriages
Get a prenuptial agreement, which will establish who gets what in terms of money and residence in case of divorce or death, in order to protect hard-earned money. Paul McCartney unfortunately did not have one upon his divorce of Heather Mills in 1998 and altogether cost $50 million.
5. Keep Your Will Updated
On personal possessions and money saved over the years, it is important to know and write down who in the family gets what. Especially when there is marriage, divorce or the birth of a child, it is important to include, or exclude certain members of the family in the will.