Last week, I found out one of probably the biggest financial blunder that I will ever make in my life!
And to celebrate my financial blunder, I am starting a new series (yes, it will be like a Korean drama) called “Your Budget Pal: EPIC FAILS”. Hopefully, my blunders will teach not only me lessons, but you too, my financially savvy readers.
Are you ready? Here we go.
It will be September next week and since we renew our medical at work every September, we had to fill out new papers again. Upon filling out my papers, I noticed one sheet where we had to put our beneficiary or beneficiaries on it. So, I put mine.
This prompted me to check if I had set up beneficiaries too on my savings account. I went to my credit union and guess what? I DON’T HAVE BENEFICIARIES ON MY ACCOUNT! Whooooaaaaaaat??!
That right there my friends, is an epic fail on my part. I’ve set up my beneficiaries on my account and corrected my mistake right there and then. You should check with your bank or credit union too if you have set up your beneficiaries or not.
What happens if you don’t have beneficiaries?
Simple. When you die, whatever you have saved up (big or small) or whatever amount is in your insurance, everything will go to probate. Meaning, it will go to the state and the judge will decide where your money will go. Though the judge might give some to your immediate family or whoever survivor you might have, it will be less compare to what it should have been because of all the legal fees. Isn’t that sad? You die and someone gets to decide where your money goes. I don’t want to sound morbid about dying but it’s a reality of life.
On the other hand, if you have set up your beneficiaries in the first place, the process will be as easy as one, two, three. When you die, your beneficiaries will just show your death certificate to the financial institution, the financial institution will verify your beneficiaries’ identities, and then, your beneficiaries will get the money that you left.
Financial planning for the moment and the future is necessary. We shouldn’t take it for granted. It is essential that we set up our beneficiaries so when that “moment” arrives, we know in ourselves that we did our best to take care of our loved ones, even in death.
How about you? What financial mistakes have you done in your life? What did you do to turn them around?