Margareta Magnusson, author of “The Gentle Art of Swedish Death Cleaning,” claims to be somewhere between the ages of 80 and 100. She’s not a financial advisor, but her housekeeping philosophy has actually had a bigger impact on my financial choices than a lot of money experts have. And I’ve listened to my share of money experts.

When I was younger, Suze Orman’s “Young, Fabulous and Broke” taught me how credit works and what the hell a FICO score is. I continue to appreciate and benefit from  materials from Debtors Anonymous as well as Allen Carr’s “Get Out Of Debt Now.” (I recommend the audiobook, if only to hear him politely bark common sense at you in a fun English accent.)

But it is Magnusson’s book that got to the heart of my own problem with overspending.

I’ve always been bad with money, but it wasn’t until three years ago that I began to realize I had an actual problem.

Reading up on making change

Books have always helped me get through life’s cascade of challenges.

“The Power of Habit” by Charles Duhigg taught me to build and maintain both a meditation practice and a better nutrition plan. Howard Halpern’s (admittedly dated) “How To Break Your Addiction To A Person” helped me to stop engaging in inappropriate “friendships” that crossed boundaries.

For me, the last few years have been full of personal change. I moved to and from (and back to) California, ended a long-term relationship, re-evaluated my friendships, and got my physical, mental and financial health in better shape. In addition to writing four books, learning to cook, and working through my aforementioned problematic friendships, I also found a day job I genuinely enjoyed.  

I made contributions to my retirement funds; and I got into, out of, and back into credit card debt.

At the same time, I also admitted to myself, my family and friends that I had a problem with debt, and started to do some things about it.

But I didn’t choose Magnusson’s book because of my debt issues. This totally metal-sounding Goth death manifesto seemed like just the thing to jumpstart the reorganization of my living and working space. I downloaded the audiobook, narrated by the British stage and screen actress Juliet Stevenson.

Magnusson’s overall objective is to encourage people to get rid of excess possessions in order to make things easier on their relatives and friends when they pass away.  People who know me know that I’m not afraid to tackle “morbid” things. I’m in the process of finalizing my will, and I’m finding it rather enjoyable.

But her ideas  about how living in a well-organized space with fewer objects can make one feel more relaxed and peaceful really resonated with me in a way that turned my attention not to my own death, but to my own life.

Our stuff keeps us from moving forward

Believe it or not, there are a lot of studies out there about clutter.

One that particularly fascinated me: Researchers at the Center for Everyday Lives of Families (CELF) at UCLA spent four years engaged in an ethnoarchaeological study of the lives of several Los Angeles-area families — and their massive amounts of stuff

“For more than 40,000 years intellectually modern humans have peopled the planet,” the study authors wrote. “But never before has any society accumulated so many personal possessions.”

The researchers found that its subjects found it difficult to sort organize, and manage all their objects, souvenirs, papers, books, CDs, DVDs and all the things that add up and spread out over our homes.

“Our excess becomes a visible sign of unaccomplished work,” wrote study’s co-authors, Anthony P. Graesch. “[It] constantly challenges our deeply ingrained notions of tidy homes and elicits substantial stress.”

Magnusson has good ideas for how to get rid of clutter. She recommends giving things away to family and friends and taking time to enjoy how much lovelier and calmer life is once you’ve cleared out that terrible closet.

But one of her main points is not to leave an undue burden of excess stuff on other people after you die and take responsibility for your possessions and your space. I hit pause on the audiobook, and took a deep breath. That’s when it all started to click for me.

This wasn’t just about organizing one’s physical space. This was about not creating a mess of any kind and expecting others to clean it up.

And this brought me to consider my finances. It turned out my money issues were all mixed up with my clutter problems.

Why collecting stuff can make us feel good – for a while

I believe that we can understand the causes of and influences on a particular negative behavior without excusing said behavior.  So rather than continuing to criticize my clutter habit without doing a damn thing about it, I began to consider it in the context of my personal psychological history.

I came to understand why I turned to overspending as a method of self-soothing. For one thing, it was modeled for me by some of the adults around me when I grew up. For another, when I was an adolescent, I dealt with an ever-increasing case of agoraphobia that eventually led me to drop out of college.

It has been pretty well in check for many years, but it rears its head when I’m particularly stressed. I’ve experienced occasional suicidal depression since my teen years but I’ve always been been dutiful about seeing a therapist, maintaining a proper schedule of sleeping and waking, and eating reasonably well during those rougher times.

That said,  there are plenty of other unhealthy methods of diversion or comfort available to me when I’m feeling particularly low. And over the years I’ve used the Internet, food, sex, and more to keep myself distracted in order to avoid what’s really going on.

In my experience, overspending is the most insidious method of briefly numbing the pain. It doesn’t leave you with a hangover or pose much of a physical health risk, at least until your pile of unnecessary cat sweatshirts falls on you and smothers you. (Note: I only have one unnecessary cat sweatshirt. The other one is very necessary.)

Overspending can also be fun and can grant you the delusion that people really like you. Well, of course they do, if you’re covering the tab for a fancy restaurant meal or taking everyone to the movies twice a month.

Our clutter can be a reflection of the lives we want

I looked around in my two-room studio apartment at all the things I’d purchased and left in the delivery boxes: the two sets of fancy headphones; the big selfie light perfect for those goofy vlogs I’d never actually shot; the microphone for the podcast I had yet to begin producing; the novels I knew I’d love if only I could muster the enthusiasm to actually read them.

Then there was the container garden starter kit, never started, still in its own big container (an unsightly Amazon box.)

There were other things, too, all tied in some way to an unfulfilled idea of some activity bound to bring joy to my life. It was not difficult to see that my self-soothing habit of buying things online led rather swiftly to an experience that was anything but soothing: a cluttered home.

Oh, and the little manner of more debt.

Cleaning house takes time

I had for some months been tracking everything I spent on a spreadsheet. Now, I decided that I would commit to only using cash, checks, or my debit card. This would both put a halt to new expenditures on my credit card and put a check on my inclination to make an impulse buy with “imaginary money.”

Further, I would not purchase any new object for my home beyond the necessary supplies like food and toiletries. I would of course continue to pay my rent and utility bills, as well as the very helpful luxury of a housecleaner once a month.

And during this two-month period, I would bring some giveaway objects to my car with me every single time I left the house. Once my trunk was full, I would go to a local nonprofit thrift store and donate the items. Along the way, I’d also continue throwing out and recycling items I no longer needed.  Then the cycle would begin anew.

I liked Magnusson’s suggestion that I offer some items to family and friends who might find them useful or lovely – not to guilt them into taking away some of my garbage, but as a pleasant transaction. They get something new and cool, I get more space in my home.

In this way, I could combine my desire to spend less with my desire to declutter my home.

Death cleaning = more space to live

I’m pleased to report that it’s working quite nicely. I’ve grown to enjoy the sight of my own hardwood floors again. I have more room to stretch out in the corner of the kitchen where I work. I take great pleasure in looking at my bookshelf and seeing that it isn’t full. And I have more money to pay down debt and take care of medical necessities.

My home isn’t nearly as decluttered as it will be in a couple more months, and I’m not magically out of debt. But that’s the thing about changing your life – it isn’t magic. It’s work, real work, and when you start showing up for yourself and the folks around you, taking the small steps to be healthier and kinder and happier, the changes happen.    

The post How I Swedish ‘Death Cleaned’ My Way To Better Finances appeared first on Stash Learn.

Does it really matter what happens to your stuff once you’re gone? The answer is yes.

You don’t want random strangers deciding who gets your collection of concert stubs or the bicycle on which you logged so many miles. And you definitely don’t want your friends and family squabbling over the last $200 in your checking account or the $5,000 vacation fund you worked so hard to accumulate.

There’s so much information out there about what actually goes into a will. New York City estate attorney Michael C. Levy helps us separate myth from fact.

Myth #1: I can leave everything to my cat (or dog or parakeet)

Believe it or not, you can. But it’s a bit more complicated than a simple yes or no.

“You can’t technically leave property directly to a pet because a pet has no means to accept the property,” Levy says. “They are not human, and they are incapable of understanding the concept of money or property.”

What you can do, is set up a pet trust and leave all the money, real estate and property you want to that trust to be administered by an executor of your choice.

Don’t think it happens? That’s what heiress Leona Helmsley did when she died in 2007, leaving her beloved Maltese named Trouble a whopping $12 million.

A judge eventually slashed Trouble’s extravagant inheritance down to $2 million — the remaining $10 million went back into her charitable trust — but the pooch lived a lavish life until she died in 2011 at the age of 12.

Myth #2: I can just write my wishes on a piece of paper and give it to my mom

“That’s not a good idea because most states require certain formalities to have a will entered into probate and actually considered valid,” Levy says.

Generally speaking, you must state your final wishes and intentions in writing, and have the document signed by two witnesses who must affirm that they saw you sign the will, Levy says.

“If you cannot prove that the will was validly signed, it will ultimately not be admitted to probate,” Levy says. “The piece of paper to mom is not going to work.”

Myth #3: I can put in whatever I want, right? It’s my will!

Actually, no. The probate court will not uphold anything that’s illegal or against public policy.

Levy has also seen wills that place conditions on heirs that they be married or marry a person of a particular religious faith. None of this is likely to hold water in court, he says.

And explicitly disinheriting someone sets up the estate to be challenged in court by the disgruntled relative, so that’s usually frowned on as well, Levy says.

If you’re dreaming of strange and creative ways for your money after you die, best to consult a lawyer before penning those grand plans.

Myth #4: I have one copy of my will. I can just keep it in a sock drawer or a safety deposit box

Don’t do it, Levy says.

In New York, if the client has possession of the original will and loses it, the probate court will assume it’s been revoked and will consider your estate without a will.

That’s why Levy strongly recommends leaving the original with your estate attorney and keeping a copy for your own records.

“But if you have a safe place where you know it’s not going to get lost and you know it’s not going to be turned into a paper airplane by a child or used as a ‘wee-wee’ pad by a dog that’s fine,” he says.

Connecticut estate planning firm Cipparone & Zaccaro based in New London, Connecticut, also suggests leaving it with your attorney. Other sensible options, they say, are in a fireproof safe either at your house or with the executor.

Levy did issue one caveat about safety deposit boxes — don’t lose the key. If you lose the key and then die, the bank is going to require proof that your executor has permission to access your safety deposit box … permission still located inside the safety deposit box.

Just let your lawyer keep it, Levy says.

Myth #5: I don’t need a lawyer to write a will!

No, technically you don’t. A quick online search of “online will documents” turns up dozens of do-it-yourself offerings.

But be careful what forms you use. And since state estate laws vary wildly, a one-size fits all type of legal document may not hold up in court.

“If serious legal mistakes are made, you’ll never know because they will not become apparent until you die,” Combs writes. “And the people left to deal with the mistakes are the people you’re probably creating your will to protect.”

The post Will Myths! Can I Leave Everything to My Cat? appeared first on Stash Learn.

But if you don’t want someone else to control what happens to your family and your money, making a will is a no-brainer.

It’s an essential document. And yet, 71.6% of Americans do not have an up-to-date will, according to a 2016 survey conducted by USLegalWills.com. According to the data, only 8.6% had a will but it was out-of-date. And 63% of Americans had no will at all.

There’s more.

Two-thirds of Americans over the age of 35 don’t have an up-to-date will. Think older Americans have their estate planning together? Only half of Americans over the age of 65 have up-to-date wills in place.

A basic will doesn’t have to cost a fortune.

Being rich doesn’t make people more responsible, when it comes to preparations. The survey showed that wealthy Americans are no more likely to have written their will and more likely to have an out-of-date will.

Here are some basics on wills and how they work:

What’s a will?

A will is a written, legal document that expresses what you want to have happen to your property, including real estate, bank accounts, investment portfolios and the contents of your home. It may also used to decide how debts and taxes are paid.

It also includes directives for the guardianship of your children, if you die before they reached their majority, which ranges from 18 to 21, based on state law.

What do people put in a will?

Wills mainly pertain to people and property.

The top provision concerns the guardianship of children, generally defined as anyone under the age of 18. If a parent dies and there are no additional parents to care for the children, a guardian will be appointed by a state court.

A will gives the court guidance on who you want to assume responsibility for your children in the event of your death. Without a will, it will be up to close family and friends to petition the court, and explain who they are and why they want to care for the child.

Provisions of the will pertain to what happens to a person’s property, regardless of whether they are billionaires or have a modest nest egg. When someone dies, all of his or her assets — money, stocks, bonds, real estate, even their clothes — need to be collected and dispersed.

Property owned by more that one person may pass along to the other owner in what’s called “right of survivorship,” in which the house, car or other type of asset is automatically given to the surviving owner. Then assets with a designated beneficiary, such as life insurance and retirement accounts, will go to the person named in those documents.

Any items that have no designated beneficiary  Any items that have no designated beneficiary would most likely be a part of your probate estate, from brokerage accounts to art and other personal effects. Some people choose to get specific about what items go where, and other people leave it to the executors of the will.

What’s an executor?

Appointing an executor is one of the most critical parts of creating a will. (In some states, the executor might also be called a personal representative or administrator.)  

Executors are personal representatives. They’re responsible for all the affairs of your estate after your death, including making sure expenses, debts and taxes are paid, and that property is collected and dispersed according to your wishes.

The executor typically receives a modest payment for his or her role in managing the affairs of the deceased person, usually a percentage of the estate, or a flat or hourly rate.

While it is common for spouses, parents or adult children to be named executors of your estate, you may designate anyone, including friends, cousins or siblings.

An executor should be someone you trust with your property, and who you believe will honor and carry out your final wishes. Heirs and survivors may try to contest an executor appointment, and will need medical and legal documents proving the executor is unfit for the job. The court will have the final say.

Is a will expensive? How long does it take?

A basic will doesn’t have to cost a fortune. The cost can vary depending on where you live and the size of the law firm that’s handling the will. What’s essential is that your will is valid in the state that you live in at the time your will is necessary to be carried out implemented by your executor.

Important to know! If you make a will in one state (say New York), and then move to another state, (say Georgia), that will may not be considered valid. It’s very important to make sure your will is up to date in the state that you are presently living in.

If you have a large and complicated estate, such as multiple properties, investment portfolios, businesses, or international bank accounts, you can expect to pay more.

If you choose to use an attorney, the process can take between three and six months. During that time, you’ll meet with an attorney to discuss the estate and the provisions you want to make in the will. The attorney will draft versions of the will, which you’ll need,to review and possibly change, before it is signed in the presence of witnesses.

What happens if I don’t have will?

People who die without a will have “intestate” estates. That’s the default inheritance set by each state, to determine who gets what. That can cause real problems.

The court will use a state-mandated priority list of beneficiaries, and disperse your assets to the people on that list. Generally, spouses and adult children are at the top of the list, followed by parents and siblings, then nieces, nephews and grandparents.

It’s unusual, but if there is no other family, the courts will then designate first cousins as beneficiaries, according to legal sources.

If you don’t want someone else to control what happens to your family and your money, making a will is a no-brainer.

Top takeaway

Leaving the fate of your children, the contents of your bank account, even your prized sports memorabilia up to the courts — or worse, squabbling family members — is something to avoid at all costs.

It’s necessary to look out for the best interests of your property, assets and children in the event of your death.

The post What’s a Will and Why Do I Need One? appeared first on Stash Learn.

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There’s nothing funny about making a will. The idea of it seems so depressing and well, final. So sometimes, you have to laugh.

A lot of us put it off until it’s too late. Why do we put off making a simple document that will make our family’s lives easier?

I can tell you that. Because it scary to think about death and dying, especially when we’re in our 20s and 30’s. But making a will isn’t just for parents and grandparents. It’s for writers, artists, aunts, uncles, and anyone who cares about where their money, stuff, and legacy is handled after they’re gone.

Let’s not get grim about it. Let’s get real. Let’s laugh about it.

Today’s guest is Sara Benincasa, comedian and author of fantastic Real Artists Have Day Jobs.

She dismisses my superstitions and tells me to make a will and get my afterlife together.

Got a question you’d like us to answer on the show? Drop us a line at teachmehowtomoney@stash.com. We’ll do our best to get to all of them.

Ready to start investing? Sign up for Stash and then enter the promo code PODCAST and you’ll get $5 to get started on your financial journey.

The post Podcast: Why You Need a Will with Sara Benincasa appeared first on Stash Learn.