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I have been living on the 60/40 budgeting rule for more than three years now. I had read on this subject in a magazine article and in a conversation with a colleague, I found out a simple system in which my colleague has been using for years.

The Rule (60%)

The 60/40 rule simply says that 60% of your gross income should go to Committed or Fixed expenses. These expenses are your Overhead expenses, meaning the basic things you need to pay to survive. They include:

• Basic food and clothing needs.
• Rent or Mortgage
• Utilities (electricity, water, internet, cable subscription etc.)
• Insurance premiums.
• Charitable contributions.
• Taxes.

It looks simple enough but in my experience putting all committed expenses into 60% of my income was a tough thing to do. But don’t give up as it is very possible to achieve this. Continue reading ‘How to Save More Money: The 60-40 Budgeting Rule’ »

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One way you can reduce estate taxes and the costs of probate court is bypassing it. This is why trusts have become so popular. Trusts are an excellent estate-planning and property managing tool. They are fairly simple and inexpensive to create and are accessible to everyone.

Private citizens create trusts for many reasons. One particular reason why many people create a trust is to prevent certain assets or capital from going to probate court when you die. A way to do this is by creating a trust in favor of a beneficiary who at the time of the formation of the trust is incapable of managing the property that is intended for him or her, either because he or she is a minor, or because he or she has been legally declared incapacitated. For example, a parent can create a trust in favor of his three minor children, providing that the funds transferred to the trustee will be used to finance the children’s future college studies in equal parts. Another example would be the case in which a parent creates a trust in favor of his or her autistic child to provide for his or her future special needs, called special needs trust, for the child’s personal and medical care. Continue reading ‘Trusts – A Great Tool to Save Money’ »