Focus on what’s important now

Dear Dave,

I’m 22, working my way through college and I’ve already been able to start setting money for life after graduation. I had a talk with my parents recently about my plans once I get a real job and get out on my own. They seem to think I’ll be okay, but sometimes things can seem so overwhelming. How do people manage and prioritize more adult responsibilities like investing, marriage, having kids and everything else?

Kieran

Dear Kieran,

You’re right, it can be overwhelming if you look at all these things as if they have to be done right now. But I’ll tell you something you already know: You don’t have to do everything right now. It’s great to look toward the future, and have a plan, but you’re only 22. You’ve got plenty of time to decide what’s important to you. For now, let’s just say you’ve done a great job so far. Take a deep breath and relax. You’re way ahead of the game compared to most young people your age, and you should be proud of your accomplishments.

Now, all the things you mentioned are great goals. Some of them are kind of intimidating, but those aren’t what you’re facing right now. In my mind, finishing college is your number one priority. Then, after you graduate and begin life on your own, you can begin looking at the other things you mentioned –one at a time. Once you find a good job, you can begin setting aside for retirement. If your car is about to roll over and die, that first step may be a better vehicle. If there’s a special lady in your life, you might begin focusing on marriage somewhere down the road.

Don’t be too intimidated, Kieran. Things are often easier to deal with when you break them down into smaller pieces and address them individually. There’s a funny old adage that goes something like this: How do you eat an elephant? One bite at a time. Do you get what I’m saying? Nobody can do four or five big things at once and do them all to the very best of their abilities. Decide what matters most, put it at the top, and list everything else in descending order of importance. Once you’ve done this, go down the list, focus and knock them out one after the other.

You’re a smart and determined young man, who has accomplished a lot already. Something tells me you can do just about anything you set your mind to!

Dave

Over 18? You need a will

August is National Make-a-Will Month

By Rachel Cruze

When you think of August, what comes to mind? Hot, sticky days, back-to-school sales and… National Make-a-Will Month?

I know, thinking about dying isn’t on your summer mood board – or anyone’s. A recent survey shows only 24% of Americans have a will in 2025, according to Caring. But not making a will won’t magically stop death. We try to push it away with all the serums and vitamins and a good workout routine, but it will come. And when it does, you want your family to be in the best position possible so they can grieve without dealing with a messy estate. Think of it as your final “I love you!”

Wills aren’t just for rich, married people

Whatever stage of adult life you’re at – no matter your net worth – you need a will. Whether you’re married or so single you’re ready to sign up for the next season of “Love is Blind” – you have something you’ll leave behind and loved ones who’ll have to sort it out.

It should be obvious that if you have kids, you need a will. After all, this is the legal tool you use to make sure your kids are taken care of if something happens to you. But that same survey showed the largest cohort of people without a will are parents with kids under 18! Guys, this is not okay. That means a big chunk of parents today are going to let the state decide what happens to their kids if they die. As a mom of three, this gives me anxiety to think about.

What about a trust?

Trusts are an important estate planning tool too, but they’re generally more complicated and better for complex or large estates (think someone who owns a business and property in multiple states).

Some big differences between wills and trusts include:

Wills are cheaper, while trusts can cost thousands of dollars.

Wills go into effect after you’re gone, while the most popular trust – a living trust – goes in force while you’re still alive.

Wills almost always go through probate, which means your estate becomes public knowledge, but trusts can help you avoid probate.

Wills can name guardians for your kids, while trusts can’t.

There’s a simple rule of thumb for whether you need a trust: If your net worth is under a million dollars, you generally don’t need one.

An exception to that rule is if you have kids. Anyone with dependents under 18 will need to create a testamentary trust and a will. (Before your eyes start to cross, let me tell you there are easy online will products that give you both.) Another exception would be if you had someone like a special needs child you needed to provide for.

Making a will doesn’t have to be hard

Making a will might sound worse than a dentist appointment (at least you know how to make a dentist appointment), but it doesn’t have to be. You’ve got options.

You can pay an estate attorney to draw up a will for you. This is a good choice for anyone with a complicated situation like a business owner or someone with a blended family.

Then there’s an online will option.* They’re easy to get and cost way less than working with an attorney – but don’t let that fool you. These things are legit. You can create a really solid estate plan with an online will. They’re great for people with a net worth less than $1 million and a straightforward family situation, including singles, couples with kids and older couples with grown kids.

The biggest differences between having an attorney draft your will and getting one online are cost and time. Attorney-drafted wills start around $300 and quickly go up from there. With an online will, you really won’t pay more than $300, and it’s often less.

The other consideration is time. Using an attorney will take longer. You’ll need to find a reputable lawyer and make at least one visit to their office. With an online will, you can get your estate plan set up in less than an hour plus the time it takes to get your will notarized.

If you’re thinking about an online will, here are some things to look for:

Attorney-built: You don’t have to visit a lawyer and watch them write it, but the will-maker you use should be designed by a lawyer.

State-specific: States have different laws. A good will-maker should construct a will that is customized to your state rules.

Includes a testamentary trust (if you have kids under 18): Testamentary trusts allow you to appoint a manager to steward your assets until your kids are old enough to inherit them.

Comes with financial and medical power of attorney documents: These are important tools that let you choose people you trust to make decisions if you become incapacitated.

Don’t wait for an emergency to get this done

It’s easy to push off hard things until they seem urgent. COVID-19 motivated a lot of people to get their affairs in order, but since then, estate planning has plummeted. You don’t need a pandemic to have a reason to do this – and I promise you, it’s not as unpleasant as you think. Grab a glass of wine, get comfy on the sofa and knock this out. You (and your family) will be so glad you did!

* Rachel Cruze is a two-time #1 national bestselling author, financial expert, host of The Rachel Cruze Show and co-host of Smart Money Happy Hour. Since 2010, Rachel has served at Ramsey Solutions, where she teaches people how to avoid debt, budget and win with money at any stage in life. Follow Rachel on YouTube, Instagram, TikTok, Facebook and X.

Sentinel Note: * Freewill is an example of an online will service.