Michael Jackson, an international pop star, passed away recently. It is hard not to know this, since the media has carried it so extensively. His departure leaves us with quite a legacy of music that spanned over 40 years.
Valerie RumboughHowever, something he probably didn’t plan on leaving was his enormous debt – approximately $500 million. In fact, part of the reason he was planning a comeback tour was to help diminish some of that debt. That didn’t happen, and now the world knows how much he owed to his creditors. Had he thought about this beforehand, he may have been quite embarrassed.
How many of us would be embarrassed for others to know what shape we are in financially? When we leave this world, what story will our estates tell others? Will our legacy be one of prudent and wise spending, or extravagance and debt? If your legacy isn’t what you would like for it to be, it is not too late to do something about it.
First of all, develop a budget that allows you to spend less than you make. Then, develop a savings plan to allow you to prepare for those unexpected expenses. Work on paying down the debt that you have. Some planners suggest paying off the debt with the highest interest rate first, others suggest working on the one with the lowest balance. Whatever you choose, be sure to choose something that you can stick to. Finally, be sure to make plans so that those left behind will find your affairs in order.
You can do this a number of ways, but the most important, by far, is to have a will drawn up that states where your assets are to be distributed. As you write your will, take the opportunity to leave a legacy that also demonstrates your love for your Savior and your dedication to his kingdom. You can do this by naming your church or favorite charity in your will. Even a small percentage is better than not leaving anything at all. What a wonderful way to have the “last word” when it comes to your affairs. Let’s all work toward leaving a legacy of faith and responsibility, instead of extravagance and debt.
Rumbough, CPA, CFP, is chief operations officer with the Baptist Foundation of South Carolina.
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