Money Management

There’s more to this money-saving method than just clipping some coupons. Here’s what you should be aware of if you’re thinking of trying it out. 

Many years ago, I was an extreme couponer. I wanted to save money on food, personal care items, and other household items while I was going to school so I could keep my credit card bills down.

Extreme couponing helped me spend a lot less on groceries and toiletries. But while it meant I had more cash left in my checking account, there were a lot of downsides as well. The drawbacks caused me to abandon the practice.

If you’re thinking about starting up extreme couponing, there are a few things you need to know before you jump in.

1. It can take a lot of time to plan your shopping and find the best deals

Extreme couponing requires more effort than you might think. Here’s what’s involved:

You have to obtain coupons. Often this means buying multiple copies of the Sunday paper (which contains the coupon circular), and clipping coupons out of all those copies of the paper. It can also mean scouring manufacturer websites and deal websites to find printable coupons.You have to look through store sales flyers. The goal of extreme couponing is to combine manufacturer and store coupons with store sales to get items for free or for pennies on the dollar. You’ll need to look through store circulars each week and look through your coupon inventory to match up sales.

You can use websites like Slickdeals to help shortcut this process a little by checking out deals other people are putting together. But, since you may not necessarily have the same coupon stash as online shoppers or the same stores near you, you’ll still have to do your own research and spend time combing through coupons available to see if you can get a particular deal.

When I was extreme couponing, it would often take me several hours a week just to put together shopping lists due to the research involved.

2. You’ll have to shop at multiple stores to get the best deals

If you want to actually be successful at extreme couponing, you have to go where the deals are. This often means visiting multiple stores each week so you can capture the current bargains. I regularly used to go to CVS, Walgreens, Rite-Aid, K-Mart (I’m dating myself with that one), and several grocery stores multiple times weekly to pick up items at discounted prices.

In many cases, deals will be time-sensitive and you may have coupons, rebates, or ExtraBucks (from CVS) that are expiring — so if you don’t use them, you lose them. This can leave you feeling like you must shop each week no matter what. In fact, I have a friend who still does extreme couponing, and she visits drug stores while on vacation to make sure she’s continuing to get the deals each week.

3. You may have to buy stuff you wouldn’t necessarily want

Finally, the last thing you should know about extreme couponing is that you may have to buy stuff you don’t want. Here’s why.

Say that a manufacturer is offering a $5 gift card if you buy five of a certain product or $20 worth of a certain brand. If you could combine coupons and store sales to get those five products for free, you would want to buy them even if you didn’t use them in order to get the gift card. This means, unfortunately, that you get stuck purchasing (and storing or throwing away) items you don’t need.

Before you jump into extreme couponing, you need to be aware of all of these realities. It can still be worth doing if you have more time than money and if you enjoy deal hunting and the thrill of walking away with free (or near-free) stuff. But don’t assume that extreme couponing is just a quick and simple way to reduce your grocery bills, because that’s not really the case once you get started with it.

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The right trust can help you protect and preserve your assets for future generations. Learn which type of trust is best suited to fit your needs. 

Trusts can help you safeguard your assets and distribute them effectively. They can also help you avoid tax hassles and legal battles. However, choosing the right type of trust to meet your needs can feel overwhelming.

RELATED: Beginners Guide to Banking

Here are some tips that can help you determine which type of trust is right for you.

1. Your objectives for the trust

The key to choosing the right trust for your needs is to determine what your objectives are. Are you looking to protect your assets from creditors? Ensure your loved ones are provided for after you pass away? Reduce taxes on your estate? Different types of trusts are designed for different purposes, so it’s essential to figure out precisely what you need before making a decision.

There are many types of trusts available, such as revocable trusts, irrevocable trusts, charitable trusts, and so on. Each type of trust has its benefits and drawbacks. For instance, a revocable trust can be changed or revoked at any time, while an irrevocable trust cannot be changed once it is established. Understanding the differences between trusts is crucial in choosing the right one for you.

2. Your financial situation

Your personal finances are a critical factor to consider when choosing a trust. If you have valuable assets that need protection from creditors, an irrevocable trust may be the right choice.

Irrevocable trusts can protect your assets from creditors, lawsuits, and estate taxes. However, they are usually more complex and costly to set up than revocable trusts. Once you establish an irrevocable trust, you cannot change or terminate it without the consent of the beneficiaries. This type of trust can be helpful if you want to transfer wealth to future generations or charitable organizations.

On the other hand, if you have assets you want to keep under your control, a revocable trust may be more appropriate. Revocable trusts are a popular option because they allow you to retain control over your assets while you are alive. You can make changes to the trust whenever you want and you can also dissolve it if you need to.

A revocable living trust can be helpful if you want to avoid probate and keep your affairs private after your death. This type of trust can also be useful if you become incapacitated and need someone to manage your affairs.

3. Your beneficiaries

Another key factor to consider when choosing a trust is your relationship with your beneficiaries. If you have beneficiaries who struggle with addiction or have special needs, you may want to consider a more complex trust that provides for their needs while protecting them from themselves or others.

A special needs trust can provide financial assistance to a disabled beneficiary without jeopardizing eligibility for government benefits such as Medicaid or Supplemental Security Income (SSI). This type of trust can pay for expenses that are not covered by government programs, such as therapy, education, or recreation. Special needs trusts can be funded with the beneficiary’s own assets or with assets that are gifted or bequeathed by others.

Testamentary trusts are created through a will and become effective after the death of the person who made the will. Testamentary trusts are often used for married couples where one person is at risk of needing long-term care. Keep in mind, though, that testamentary trusts are subject to probate and can be challenged.

4. Your taxes

Taxes can have a significant impact on your assets, and a trust can help minimize the amount you owe. For example, a dynasty trust allows you to transfer your wealth to multiple generations without having to pay taxes, such as estate and gift taxes.

The trust is designed to last for multiple generations — up to 1,000 years in some cases. Any assets you put into this trust, like stocks or bonds, are taxed only once. Many wealthy families are taking advantage of dynasty trusts because they provide a tax-efficient way to transfer vast sums of wealth without having to pay significant estate taxes or risk losing those assets to creditors.

Charitable trusts can help you support your favorite charities and receive tax benefits at the same time. There are two types of charitable trusts: charitable remainder trusts and charitable lead trusts.

Charitable remainder trusts can provide income to you or a designated beneficiary for a certain period, with the remainder passing to a charity. Charitable lead trusts provide income to a charity for a certain period, with the remainder passing to your designated beneficiaries.

Bottom line

Choosing the right type of trust requires careful consideration of your goals, assets, and family situation. You may need to consult with an estate planning attorney to help you make the best decision.

Remember that your choice of trust can have a significant impact on your legacy and your loved ones’ financial security. By taking the time to learn about the different types of trusts and their benefits, you can create a plan that meets your unique needs and goals.

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Buying second-hand goods is a great way to save money. However, you’ll want to protect yourself against these rackets. 

A whopping 82% of Americans have either purchased or sold second-hand goods, according to data from OfferUp. That’s 272 million people who’ve helped to build a thriving second-hand retail market. Here, we’ll focus primarily on online resale sites like eBay, Poshmark, ThreadUp, Tradesy, Mercari, and OfferUp. Specifically, we’ll let you know what to be on the lookout for and how to protect yourself from scammers.

1. Mirror site scam

A mirror site is a fake site, built to look legitimate. For example, if you’re shopping on OfferUp, the scam artist will try to guide you to click on another link to make a purchase. Once you click, you’ll find yourself on a new page, but it looks so much like the OfferUp page that you believe you’re still on the OfferUp website. You’re not.

Instead, you were given a phishing link. There, you’ll find a form that requests sensitive information, like passwords, credit card numbers, or checking account info. Any information that can be harvested and used by scammers will be.

The takeaway: Never click on a link or leave the website you’re shopping on. Purchases made through that retailer are typically protected, but anything outside of that site is fair game for those looking to rip you off.

2. Overly enthusiastic buyer (or seller) scam

In this scam, the buyer or seller wants the deal done right away. They may ask for your personal email address or phone number to “speed the process along.” While your email address and phone number may seem like harmless pieces of information to share, they’re personal and can be used by identity thieves. The scammer may also ask you to text with them or otherwise communicate away from the resale site. It’s all about getting you to drop your defenses and sharing more information than you should.

The takeaway: Never leave the site you’re on, and never give a buyer or seller more personal information than you would offer a total stranger sharing an elevator with you.

3. Overpayment scam

This one is frighteningly simple. You sell an item for $100, and the buyer sends you a payment for $150. Soon after, they contact you and say they’ve made a mistake. They ask you to return the extra $50 or the entire $150 so they can issue a new payment for the correct amount. However, the original payment was fraudulent and would never have gone through.

The takeaway: No matter how you’re paid, make sure the payment is fully processed and in your bank account before you issue a refund.

4. Code verification scam

In this scam, the bad actor will pose as a buyer. Before they make the purchase, though, they want to “make sure you’re a real person.” They ask for your phone number so they can text you a verification code. The code they send actually contains a malicious link that’s designed to steal everything from your account login to your personal financial information.

The takeaway: Protect your personal information by never clicking on a verification link.

5. Nothing but a box scam

It’s hard to believe that anyone still pulls this scam, but it’s been effective enough to keep it alive. With this scam, a person posts a photo of a box that you assume holds the item you’re bidding on or buying. For example, it may be a new laptop, game console, or tennis shoes. The price seems too good to be true, so you jump on the deal. You pay for the item, but when it arrives it’s nothing more than an empty box.

The takeaway: Make sure you see what’s in the box. While that doesn’t guarantee that you’ll receive more than an empty box, it does make it slightly less likely.

The best thing you can do is to ensure you’re shopping through sites that have your back if you are scammed. Reputable sites have a refund policy that applies to anyone who’s lost money due to the actions of a scammer.

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I made an offer to buy a house in June, but the deal isn’t closing until September. Read on to learn why I agreed to draw the process out. 

When you buy a house, making an offer is just the first step. After your offer is accepted, a lot has to happen before the keys are handed to you and the home becomes officially yours. This happens on closing day, and it takes around 50 days on average to get there after you and the seller have agreed to move forward.

In my recent home sale, however, I had an offer accepted to buy a home in June and my closing date is Sept. 15. Here’s why I agreed to wait so long to actually close on my dream home.

1. To provide time for the current owners to tie up loose ends

I did not particularly want a closing date months in the future when I made an offer to buy my future home. I wanted to close on July 29. But the sellers have a tenant living in the property and they needed time for her to find somewhere else to live. They also had to take care of some outstanding claims on the home, which couldn’t happen right away.

I knew I couldn’t buy the home with outstanding liens, and I also knew I did not want to purchase it until their tenant had moved out. So, I agreed to give them the time they needed to make the house sellable.

If you found a home you love but there are problems, waiting until those problems are resolved before closing could prevent those issues from becoming your headaches. This could mean waiting until a lease with a current tenant ends (like in my case), or waiting to close until the seller has time to make repairs.

2. To get a deal on a house I might not otherwise have got

While I wasn’t happy about a long closing date, I agreed to it because otherwise, it was very likely the sellers would not have sold the house to me.

The home wasn’t even on the market when I made an offer on it, and the sellers didn’t plan to list it for a while precisely because of the issues with it.

In my opinion, the house would have listed for more than the offer I made on it, so I felt like I was getting a really good deal that was made possible by being flexible.

When a seller has specific needs — like a desire to close quickly or to have an extended delay before closing — if you can agree to meet those needs, this gives you a major advantage as a buyer. They may be willing to accept your offer because you can work on their timeline, even if someone else would potentially pay more.

3. To allow time to shop around for a competitive loan

Although waiting to move in wasn’t something I was excited about, it also had some benefits beyond just being able to get a house I otherwise might not have.

One of the biggest advantages of a long closing was the time to shop around for the perfect mortgage loan. I wasn’t rushed into locking in at a rate that wasn’t great, nor did I have to pick the first mortgage lender willing to approve me or the one that guaranteed the quickest closing.

You don’t want to jump into getting a mortgage that you don’t fully understand or don’t feel is the best deal. So, when you make an offer on a home, be sure that your closing date is set far enough in the future to give you time to shop around with different lenders, get a quote, and go through their underwriting process.

You can expedite this by shopping around for a loan and getting pre-approved before you make an offer, so the seller doesn’t have to wait for you to do your mortgage comparisons. In my case, though, I had been holding off on doing that because I was hoping rates would go down a bit before I had to lock in, so I was glad to have some extra time to take care of the mortgage issues after my offer was accepted.

4. To provide more time to save money before moving in

Finally, I was happy to have a long closing period so I could save more money. While I already had cash for a generous down payment and my move, the house does need some remodeling. I want to fund that out of pocket instead of borrowing for it, and having a few extra months to save made that more feasible.

Ultimately, you’ll need to consider your current living arrangements, how quickly you need to move, and how fast you can secure financing before you agree to a specific closing date when you’re buying a home. But, if you find a seller who needs some flexibility and you’re willing to give it to them by agreeing to close on whatever their timeline is, you may just find you can get a much better deal on the home of your dreams.

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Does your state get to claim your bank account when you pass away or do your heirs? Read on to find out. 

You need money in a checking account so you can pay your bills on an ongoing basis. And you need money in a savings account for emergency expenses, such as when your roof springs a leak or your car gives you trouble.

But what if you pass away and there’s money left in your bank account? What happens to that money will hinge on whether you have a joint account. And if you don’t have a joint account, what happens to your money will depend on whether you have a beneficiary designated for your account.

When you pass away and leave money in the bank

People who are married commonly open joint bank accounts. And sometimes non-married family members open accounts jointly for different purposes.

If you have an account with a spouse or another person, and you pass away, that account will generally become the property of that joint holder. Similarly, if you designate a beneficiary on your bank account, that person will generally be entitled to receive the money in it. This is true even if you don’t have a will, according to King Law Offices.

Now, even with a designated beneficiary on your bank account, the account will still likely have to go through probate. Probate is a legal process where a deceased person’s assets are analyzed and divided up accordingly. In some cases, having a will could make it so you’re able to avoid probate. But even if not, it will be clear who the money in your bank account is supposed to be given to.

When you have no surviving heirs

You may be someone who doesn’t have a spouse, children, or other relatives. If that’s the case and you pass away without having designated a beneficiary for your bank account, following the probate process, the money in that account will likely become the property of your state. But this will generally only happen if you don’t have a will or a beneficiary on your account, and you don’t have any clear beneficiaries that can be identified through the probate process.

It may be that you have no family but have an old colleague you’d want to leave your money to in the event of your passing. If you want such wishes carried out, you’ll need a will.

In fact, it’s a good idea to put a will in place even if you don’t have much in the way of assets. Having a will on file will make it more likely that your wishes are carried out upon your passing. And if you’re certain you want a specific person to receive the funds from your bank account after your passing, make them your account’s beneficiary.

If you’re not sure how to do that, contact your bank and ask what paperwork you need to submit. Taking a little time to designate a beneficiary could make it so a person you care about gets your money after you pass, as opposed to it becoming state property.

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Moving is already a big expense without making costly mistakes. Here’s one writer’s experience. 

Under the perfect conditions, moving is still a giant pain in the rump.

My cross-country move was not, by any stretch of the imagination, under perfect conditions.

When all was said and done, the move took more than a week longer than planned, and it cost over $5,000 more than I initially estimated.

We moved nearly twice the stuff I thought we owned

To say I made some mistakes along the way would be an understatement. But the most expensive mistake I made was vastly underestimating exactly how much stuff we owned — and how much space that stuff would take up in a moving truck.

When all of your possessions are neatly stowed in your cabinets, closets, drawers, and garages, it’s very hard to appreciate the sheer volume of items you own. It’s not until you take those items out, wrap half of them in something cushy, and try to cram them all into boxes, that you can really understand the true scope of what you’ve amassed.

In our case, underestimating how much stuff we had to move meant we still had stuff left over when we thought we were done. And that meant we not only needed to rent another moving truck, we also had to make an additional trip to get it to our destination.

If you haven’t moved in a while, let me tell you, moving trucks have gotten very expensive. And that cost gets supercharged when you’re moving to another part of the country.

Of course, the truck was hardly the only expense. We also had to pay for:

Flights from our new city back to our previous cityHotels to sleep in on the drive (a night in a real bed makes a big difference on a long drive)Food (you eat a lot of takeout when everything is in boxes)Gas for the truck (big trucks = low MPG)Rental car (since ours was already at our destination)Tolls (no small cost)

By the time it was all added up, we’d easily spent over $5,000. A good chunk was the rental truck, but the other expenses weren’t negligible. (Adding insult to injury, because the expense was last minute, I couldn’t even get a new credit card. So much missed sign-up bonus potential!)

Lesson learned: Prepare well in advance

So, how could we have avoided a lot of headaches? By preparing far earlier than we did.

The packing alone ended up taking three times longer than I anticipated. Other than my books (which took more boxes than I’ll admit), few of my possessions were easily packed. No, everything was oddly shaped, needed wrapping in protective paper, or otherwise required extra care and attention to safely pack.

That wasn’t all we should have done sooner, however. I guarantee that no small amount of what we moved is stuff we absolutely didn’t need to move. Had we put in time earlier in the year to properly declutter, we probably could have eliminated a ton of junk that is simply going to clutter up the new house, too.

No, seriously. Start packing and decluttering now

As soon as you make the decision to move, start decluttering. Sell off the items you think you can make some profit on — then donate, give away, or trash what you can.

Not only will this help you streamline packing and moving later, but having less clutter will probably improve your daily life in the meantime, too.

As for the packing itself, well, start at least three months before you move. Ideally, start six months out, especially if you’re buying and/or selling a house. (The month before a big move is hectic enough without trying to pack up everything you own.)

The sooner you can get a proper idea of how much stuff you have, the better you can plan the actual move. If you’re fully packed before you pick a truck, you’re far less likely to choose something too small. Or, if it comes down to it and you need multiple trucks, at least you’ll know ahead of time.

Bonus tip: Err on the side of the bigger truck

Speaking of moving trucks. If you’re torn between truck sizes, my hard-earned advice is to go with the larger truck. The hit to your bank account is a little bigger, but it can be well worth it for having a little extra space to work with when you pack.

I can honestly say I learned a lot of important lessons during this move. And, as someone who thought I had a rock-solid handle on my personal finances, it was all a little humbling, too.

If you’re planning a big move, or have gone through one, don’t feel bad when things go a little sideways. It happens to all of us.

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