Minding Your Money 360 - Quick tips to manage your money for success

It's Monday and I have a question, “Is your money working for you?”

Today on the Minute – 3 Habits to Make Your Money Work for You in Your 20’s

It's Monday and I have a question, “Is your money working for you?”

Today on the Minute – 3 Habits to Make Your Money Work for You in Your 20’s

I’m obsessed with making money work and I love talking to 20 somethings because they have so many options and the decisions you make in your 20’s can literally set the tone for how things play out in your later years. So if you’re in your 20’s, here are 3 habits to make your money work for you now and in the future:

Monitor your money. Track what’s coming in, what’s going out and where it’s going. In other words, create a budget. There are so many online and offline options to accomplish this and chances are if your life is not complicated, it will be easy, peezy for you to do this in a matter of minutes. Once you do this, you have a basis for making informed decisions about what to do with your money.

Don’t start or break-up with credit cards. I’m not saying don’t have any because it’s virtually impossible to live without them today but what I am saying is don’t get caught in their trap. When you use them, have a plan to pay them off each month.

Start saving. This is the time of your life when you can make the greatest impact on your future with the least amount of money because you have time on your side. Don’t forget about a little concept called compounding. Committing to saving a certain percentage of your income every month – no matter what that income is – makes it easy to save money with minimal effort. You can even automate this so a set amount comes out of your checking account and deposits directly into your savings account or better yet your Roth IRA account every month.

And, that’s the minute for today. You know I love helping people with all aspects of their money regardless of their age. Check us out at www.mindingyourmoneyminute.com and visit the home page to learn more.

Thanks for listening and as always remember that minding your money really is the path to a richer life!

Word of the Week: Divorce vs Legal Separation

It’s Friday and time for the Word of the Week! Our word this week is Divorce vs  Legal Separation.

I chose these two terms because I’ve gotten some questions and I want to be sure that you know what they both mean.

It’s Friday and time for the Word of the Week! Our word this week is Divorce vs  Legal Separation.

I chose these two terms because I’ve gotten some questions and I want to be sure that you know what they both mean.

Divorce and legal separation are similar effects in that they both legally create a space between you and your spouse. You live separately. Your finances are separated. Child custody, child support, division of marital assets and debts, and spousal support are all ordered by the court.

The important difference is that when you divorce, your marriage is formally ended and you are free to remarry. When you get a legal separation, however, you remain legally married to each other. You must continue to mark that you are married on forms. You cannot legally remarry.

So why not just go for the divorce? Well, some people have religious or personal beliefs that do not allow divorce and if you get a legal separation, you are still entitled to certain benefits, such as Social Security and pensions that provide payments to surviving spouses. And, in some states, it’s actually a requirement before divorce or it can be grounds for a divorce.

Our words of the week: Divorce vs legal separation. They are similar in many respects but there is one important difference – in one case you are totally free and in the other you are still considered married.

And, that’s the minute for today. Divorce can be devastating especially if you go at it unprepared. Get my ebook: How to Get Divorced Without Losing Your Blouse: 101 Things Every Woman Should Know to Protect Her Future. Get your copy by going to www.mindingyourmoneyminute.com and clicking on the shop tab or button.

Thanks for listening and as always remember that minding your money really is the path to a richer life!

How are alimony and child support taxed?

Today on the Minute – How is Alimony and Child Support Taxed?

But first, this week we’re talking about divorce and while I don’t want you to get divorced, if it’s something you’re in or contemplating, you need more info than these short...

Today on the Minute – How is Alimony and Child Support Taxed?

But first, this week we’re talking about divorce and while I don’t want you to get divorced, if it’s something you’re in or contemplating, you need more info than these short episodes and you can get that for about the cost of a latte with my ebook – How to Get Divorced Without Losing Your Blouse: 101 Things You Should Know to Protect Your Future. Get your copy by going to www.mindingyourmoneyminute.com and clicking on the shop tab or button.

Now back to Alimony and Child Support and how they are taxed. This sometimes gets a little confusing because they are not taxed the same.

The person who receives alimony must pay taxes on it because it is considered income and it is a deduction for the person who pays it. So for example, if you receive $3,000 a month in alimony that’s considered income – the same as other income you earn. So if you received alimony for the entire year, $36,000 would be added to your total income. And, by the same token the spouse who paid it would get to deduct $36,000 from his or her income.

Child support payments, on the other hand, are tax free according to the IRS. That is, the spouse who receives it doesn’t have to pay taxes on it and the spouse who pays it doesn’t get a deduction. So one type of payment is taxable and the other is not making it extremely important that it is stated appropriately in the divorce decree. For example, lumping child support in with alimony and calling it family support means that the full amount could be taxable regardless of how the money is used.

And, that’s the minute for today.

Thanks for listening and as always remember that minding your money really is the path to a richer life!

What's considered separate property?

Grounds for getting a divorce

Today on the minute – In a Divorce, What is Considered Separate Property?

But first, this week we’re talking about divorce and while I don’t want you to get divorced, if it’s something you’re in or contemplating, you need more info than these short episodes and you can get that for...

Today on the minute – In a Divorce, What is Considered Separate Property?

But first, this week we’re talking about divorce and while I don’t want you to get divorced, if it’s something you’re in or contemplating, you need more info than these short episodes and you can get that for about the cost of a latte in my ebook – How to Get Divorced Without Losing Your Blouse: 101 Things You Should Know to Protect Your Future. Get your copy by going to www.mindingyourmoneyminute.com and clicking on the shop tab or button.

One of the most frequently asked questions I get asked about divorce is can I keep what’s mine or what I came into the marriage with. And, my answer is generally – it depends. And it can get complicated.

Separate property is what you bring into the marriage, what you inherit during the marriage or what you receive as a gift during the marriage that stays separate. While marital property is anything acquired during the marriage no matter whose name it’s in and possibly the increase in value of separate property as well.

For example, if you had $30,000 in savings when you got married and it stayed just in your name in a separate account but while you were married it grew to $40,000. The $30,000 would remain separate but the $10,000 in interest could be considered marital property.

On the other hand, if you used that $30,000 that you had in savings as part of a down payment on a house that was in both of your names, it now becomes marital property.

The key here as you begin to think about what’s mine and what’s ours is to get clear about the laws in your state because they do vary from state to state. However, until you get the courts involved, you and your soon to be ex have total control over who gets what.

And, that’s the minute for today.

Thanks for listening and as always remember that minding your money really is the path to a richer life!

Surviving divorce with your shirt or blouse in tact