Remember, building credit is only half the battle. In this day and age, identity theft protection should be regarded just as highly as life or health insurance. Parents and children should always protect their Social Security Number, never lose their credit cards, protect financial information online, and never answer emails or phone calls asking to ‘update information,’ etc. Always regard your credit as an asset. It will insure you receive lower rates, better jobs, larger loans, better pay, etc. Protecting your credit and your children’s can have life long effects. Credit cards are essential in our day and age to build credit; and if used properly, they can become an asset in every regard.

By taking steps in advance, you have a greater say in how these questions are answered. And isn’t that how it should be?

Wills and Trusts

Wills and trusts are two of the most popular estate planning tools. Both allow you to spell out how you would like your property to be distributed, but they also go far beyond that.

Just about everyone needs a will. Besides enabling you to determine the distribution of your property, a will gives you the opportunity to nominate your executor and guardians for your minor children. If you fail to make such designations through your will, the decisions will probably be left to the courts. Bear in mind that property distributed through your will is subject to probate, which can be a time-consuming and costly process.

Trusts differ from wills in that they are actual legal entities. Like a will, trusts spell out how you want your property distributed. Trusts let you customize the distribution of your estate with the added advantages of property management and probate avoidance.

Wills and trusts are not mutually exclusive. While not everyone with a will needs a trust, all those with trusts should have a will as well.

Durable Power of Attorney for Finances

Incapacity poses almost as much of a threat to your financial well-being as death does. Fortunately, there are tools that can help you cope with this threat.

A durable power of attorney is a legal agreement that avoids the need for a conservatorship and enables you to designate who will make your legal and financial decisions if you become incapacitated. Unlike the standard power of attorney, durable powers remain valid if you become incapacitated.

Health Care Proxies and Living Wills

Similar to the durable power of attorney, a health care proxy is a document in which you designate someone to make your health care decisions for you if you are incapacitated. The person you designate can generally make decisions regarding medical facilities, medical treatments, surgery, and a variety of other health care issues. Much like the durable power of attorney, the health care proxy involves some important decisions. Take the utmost care when choosing who will make them.

A related document, the living will, also known as a directive to physicians or a health care directive, spells out the kinds of life-sustaining treatment you will permit in the event of your incapacity. The directive creates an agreement between you and the attending physician. The decision for or against life support is one that only you can make. That makes the living will a valuable estate planning tool. And you may use a living will in conjunction with a durable health care power of attorney. Bear in mind that laws governing the recognition and treatment of living wills may vary from state to state.

This material was written and prepared by Emerald Publications.

Since each person’s financial situation is unique, there is no hard and fast rule about the best way to consolidate debt. There are however, several rules, applicable to everyone, that should be considered before doing any debt consolidation. Firstly, make sure you do the maths. If you have $10,000 of debt on three credit cards at 25% interest it is a good idea if you can transfer that debt to one credit card at 18% interest. However, check first to see if there are fees attached to this balance transfer or if the new credit card has a large annual fee. You should verify that you are actually saving money in these cases. If the new interest rate is for a short time then you should verify that you will still be saving money when the interest rate goes back up. Be sure to read the fine print before getting into any contractual agreements. 

Paying off credit card debt by taking out a home equity loan usually sounds like a good idea due to the lower interest rate and smaller monthly payments. Some loans have points or loan origination fees added to the loans that can mean a substantial increase in your total debt. Some loans have pre-payment penalties, variable interest rates or balloon payments that can make them bad choices for your debt consolidation. Get advice from someone you trust. There are many companies that offer you debt consolidation plans, both for a fee and for free. Depending on your financial situation they may or may not be right for you. They can be very helpful in helping some people get debt free. Before taking a major step like this, verify that the company is reputable and that this is a good choice for you. Check for complaints with the Better Business Bureau. Read about the company in online financial forums or search engines. Check with your local banker or other trusted financial adviser.

In fact, in order for them to truly know you as a person, a friend, and a client, they need to be asking theright questions and you need to be sharing with them more than just the bottom line. These are just a few of the most important things to share with your financial professional when you meet to discuss your retirement:

Activities – It’s vitally important that you inform your financial professional what activities you plan on participating in the most during retirement. Often, they assume that golf and traveling will take up the bulk of your time. While that’s often an accurate prediction, it’s also sometimes too simple. Give them a long list of things you want to do in retirement so they’ll be able to understand what you plan on doing in the future. In the process, they’ll get to know you better as a person.

Your Passion – What did you enjoy about your life’s work? What did you enjoy doing the most? And what kind of activities will you participate in besides the leisurely ones? If you spent your entire life working this hard, then the chances are good that golfing and traveling won’t necessarily fill that empty space that used to be occupied by long days at work. Make it clear what other activities you plan on participating in, whether that be a job or volunteer work.

Your Legacy – It’s essential that you make it clear to your financial professional what you want to be remembered for. No one is a fan of talking about death, but by making your wishes and wants completely clear, your financial professional will be able to assist you with your estate planning needs. By informing them what charities or causes you want to benefit after you’re gone (if any), they’ll be able to plan more clearly. Oftentimes things are left unsaid during retirement and a person’s estate doesn’t always get distributed the way they would have wanted.

As a rule of thumb, you should remember communication is the most important aspect of retirement and estate planning. Always communicate your full wishes to your financial professional, even the ones you may think aren’t as important. The increased communication will mean that nothing is left unsaid, and in the process, your financial professional will get to know you better and understand your wishes fully as they help you make important financial decisions.

When recovering financially from bad decisions and repairing your credit you need to direct all the money you possibly can to catching up overdue bills and getting back on track. So it would be better if you can learn to repair your bad credit on your own without having spend some of you money paying a service to help you.

It may seem like a difficult task to take on your own but you really never know what you can do until you research it and try it out. It might amaze you just how much you are able to accomplish on your own.

Seeking Professional Help

If you cannot do it on your own and you are really must seek professional help make that decision carefully. This service is going to cost you money so you want to be sure you spend it wisely. Be sure to do your homework and find a company that really has the knowledge and resources to help you.

It is always best to try to find a company with a good long standing reputation for providing a good service. New companies that have not proven themselves yet may not be as knowledgeable and may make mistakes that you will have to pay for.

The best way to get information is to talk to other people. Maybe you have family members or friends who have gone through something similar. Ask them what company was able to help them and if they were satisfied with its services. This is a good way to help you learn what companies are out there that know what they are doing and are really helping people.

If you find the right company you will be pleased at how quickly they are able to begin to turn things around for you and help you get back on track.

There are several money-wise steps to make sure recent grads start off on sound financial footing.

Set up a savings plan

Create a realistic budget that balances what you take home in your paycheck against your regular monthly expenses. Among your expenses, include a small amount that will go directly into a savings account. Although your money may not stretch very far at first, it’s important to make savings a habit as soon as possible. When you need the cash for an emergency —- or for a well-deserved splurge —- you’ll be glad you have a savings plan. 

Polish your cooking skills

Balancing work and life when starting your first full-time job can be an experience in itself. Many young people find they have little time or energy to prepare breakfast or dinner for themselves or to pack a bag lunch to eat at work. That can become a big problem, however, because it means these young workers end up with expensive takeout meals instead of the much more economical home-prepared meal.

As an example, spending $20 a week on takeout meals adds up to $1,040 a year. That sum could be used to pay a month’s rent or could be the beginning of a down payment on your first house. If you set aside time to plan and shop for each week’s meals, your food costs will drop sharply, and you can make better choices with the money you save.

Keep debt under control

As soon as they enter college, young people begin receiving offers from credit card companies. While it may be tempting to run up a credit card balance to furnish your apartment, build a work wardrobe or acquire some new electronics, it’s not a good idea. Many recent graduates already have thousands of dollars in student loan obligations. Adding to that debt makes it more difficult to pay off your balances and begin to save for your future. 

If you do take on consumer or student loan debt, be sure to make your payments on time and in full. That will ensure that you maintain a good credit rating so that you can get credit in the future when you need it.

If you have a bad credit rating, you could be refused an apartment — or have to pay a higher security deposit for it —- be turned down for an auto loan or even face problems in getting a job. Whenever you take on debt, be sure you’re being realistic about your ability to pay it off.

Remember retirement

Retirement may be a long way off, but CPAs recommend that you begin contributing to a retirement account early. That’s because you’ll set aside more money over time and your nest egg will have more opportunities to grow.

Begin contributing to your company’s 401(k) if one is available or open an individual retirement account. Each choice offers tax-advantaged opportunities to build for your future.