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11 Situations Where You Need A Lawyer (And 3 Where You Don’t!)

11 Situations Where You Need A Lawyer (And 3 Where You Don’t!)

A traffic ticket is a legal matter. So is armed robbery. Obviously, the “accused” in both of these instances have very different situations and only one will need a lawyer to hand their defense. In between these two extremes, however, are a myriad of legal matters which may or may not require legal representation. It’s a good idea to know in which instances you should get a lawyer — and the ones where you don’t need one.

Two Legal Categories – A Short Explanation

  1. Civil Law: This area of law covers all legal issues that do not involve criminal activity or breaking the law. Generally, one party sues another because they have been “wronged” in some way and want some type of compensation for that “wrong.” Civil law also covers legal agreements, real estate transactions, divorces, child custody, and other matters where legal paperwork is necessary to protect all parties involved.
  2. Criminal Law: This area of law relates to offenses that break the laws of a local, state, or federal governments. The prosecution is handled by lawyers employed by the governmental entity, and the defense is handled by either a publicly appointed defender or a private defense attorney whom the defendant pays. In criminal law, there are misdemeanors (small offenses) and felonies (more serious crimes).

If you find yourself facing the legal system for any reason, you should probably understand that the best policy is usually to at least consult with an attorney – an honest one will provide a free consultation. They will tell you whether you will need an attorney and will either take your case or point in the direction of a lawyer who can best represent you. If the attorney takes your case, the fee will be approximated up front. In general, however, the following guidelines apply:

When You Should Get Legal Advice

1. A Complex or Nasty Divorce

When couples mutually agree on all of the details of a split, there is no real need for a lawyer. When, however, there are issues of property, investments, savings, support, debt, and child custody arrangements, only a fool neglects getting legal representation. The terms of a finalized divorce are very binding, and they can only be changed by going back to court. All of this can be avoided with a good lawyer up front.

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2. A Wrongful Termination or Discrimination in the Workplace

There are both state and federal laws at play here, and the average person does not understand them. Only an attorney who specializes in this type of law is really qualified to carry your suit into court. You can be certain that the other side will have very solid legal representation. You should too.

3. Law Suits

If you are being sued and the consequences of a loss may result in the loss of a good deal of money or property, you need a lawyer. Again, the other side has a lawyer, so you need to get one too. Most of these things are settled out of court, but you want an experienced negotiator on your side.

4. A DUI 

Driving under the influence (DUI) has become a serious charge. Consequences can include fines, jail time, loss of license, or any combination of these three. A good lawyer can meet with the prosecutor and get the charges reduced, especially if this is your first offense. Never go to court on a DUI charge without a lawyer — unless you are willing to accept the maximum penalty.

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5. Drug Charges

Defendants who have personally hired attorneys always fare better than those who do not or those who take a public defender. Remember, a public defender is on case overload, and will usually recommend a plea bargain that will be worse than what a private attorney could get you. If you qualify financially for a public defender, still try to find a friend or relative willing to pony up the money for a lawyer.

6. A Car Accident with Injury

If you have been injured in an accident that was not your fault, the other guy’s insurance company will be all over you to settle your claim as quickly as possible. Don’t do it. In fact, never talk to an insurance company representative until you have first consulted a personal injury attorney. You may not be familiar with the laws or the normal compensation rates, but seasoned attorneys are. If you are injured in car accident, don’t talk to anyone except to answer cursory questions from the police on the scene.

7. Criminal Charges

Facing any criminal charge is scary, and you may not even know your rights as an accused person. Get a lawyer immediately for protection of your rights and so that you are defended as well as possible — guilty or not.

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8. Wills and Trusts

Save your family from disputes and legal issues after you die. Set up your will or trust with a reputable attorney well in advance. Your first will should be set up as soon as you have a child and should be changed periodically throughout your life as circumstances change.

9. Business Startups

Whether you are going it alone, have a partner, or are setting up a corporation, never try to navigate all of the legal requirements alone. You need to be lawful and you need to be protected. Only a lawyer who specializes in business law can ensure these things.

10. Denial of Workmen’s Comp or Disability Claim

It is often the policy of such institutions to deny a claim the first time around. This is because they know a certain percentage of people will simply accept that ruling and give up. Don’t be one of those people. Get a lawyer up front – they will take the fee out of the settlement, so there are no up-front costs.

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11. Bankruptcy

You can’t get one without a lawyer, and they will want payment up front.

When You Don’t Need a Lawyer

There are really very few legal situations in which you will not need a lawyer, but here are a few:

1. Small Claims Court

This court is reserved for civil disputes that do not involve large sums of money, the cap being determined by individual states. Normally, this is an informal procedure – both sides tell their stories and the judge decides.

2. Traffic Tickets

Pay the fine and get over it. The only exception to this general rule is if the ticket will put enough points on your license to cause a suspension or if the offense is serious enough that your insurance rates will skyrocket. In these situations, a lawyer can get the ticket reduced to a non-moving offense and the only consequence will be a fine. Yes, our legal system does respond to one’s ability to pay.

3. Lawsuits That You Do Not Want to Contest

If someone is suing you and you know in advance what they are asking for and are willing to pay the amount, you can simply plead no contest, appear in court without an attorney, or not appear at all. If you don’t appear, a summary judgment will be issued against you.

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Elena Prokopets

Freelance Writer

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Last Updated on August 20, 2019

How to Set Financial Goals and Actually Meet Them

How to Set Financial Goals and Actually Meet Them

Finances can push anyone to the point of extreme anxiety and worry. Easier said than done, planning finances is not an egg meant for everyone’s basket. And that’s why most of us are often living pay check to pay check. But did anyone tell you that it is actually not a tough task to meet your financial goals?

In this article, we will explore ways on how to set financial goals and then actually meet them with ease.

5 Steps to Set Financial Goals

Though setting financial goals might seem to be a daunting task but if one has the will and clarity of thought, it is rather easy. Try using these steps:

1. Be Clear About the Objectives

Any goal (let alone financial) without a clear objective is nothing more than a pipe dream. And this couldn’t be more true for financial matters.

It is often said that savings is nothing but deferred consumption. Therefore if you are saving today, then you should be crystal clear about what it is for. It could be anything like kid’s education, retirement, marriage, that dream vacation, fancy car etc.

Once the objective is clear, put a monetary value to that objective and the time frame. The important point at this step of goal setting is to list all the objectives, however small they may be, that you foresee in the future and put a value to it.

2. Keep Them Realistic

It’s good to be an optimistic person but being a pollyanna is not desirable. Similarly, while it might be a good thing to keep your financial goals a bit aggressive, going out of the line will definitely hurt your chances of achieving them.

It’s important that you keep your goals realistic in nature for it will help you stay the course and keep you motivated throughout the journey.

3. Account for Inflation

Ronald Reagan once said – “Inflation is as violent as a mugger, as frightening as an armed robber and as deadly as a hitman”. And this quote sums up the best what inflation could do your financial goals.

Therefore account for inflation whenever you are putting a monetary value to a financial objective that is far away in the future.

For example, if one of your financial goal is your son’s college education, which is 15 years hence, then inflation would increase the monetary burden by more than 50% if inflation is mere 3%. So always account for inflation.

4. Short Term vs Long Term

Just like every calorie is not the same, the approach towards achieving every financial goal will not be the same. It is important to bifurcate goals in short term and long term.

As a rule of thumb, any financial goal, which is due in next 3 years should be termed as short term goal. Any longer duration goals are to be classified as long term goals. This bifurcation of goals into short term vs long term will help in choosing the right investment instrument to achieve them.

More on this later when we talk about how to achieve financial goals.

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5. To Each to His Own

The journey of setting financial goals is an individualistic affair i.e. your goals are your own goals and are determined by your want to achieve them. A lot of times we get on the bandwagon of goal setting only to realize later on that it was not meant for us.

It is important that your goals are actually your goals and not inspired by someone else. Take a hard look at this step at all the goals you’ve set for after this step, you will be on the way to achieve them.

By now, you would be ready with your financial goals, now it’s time to go all out and achieve them.

11 Ways to Achieve Your Financial Goals

Whenever we talk about chasing any financial goal, it is usually a 2 step process –

  • Ensuring healthy savings
  • Making smart investments

You will need to save enough; and invest those savings wisely so that they grow over a period of time to help you achieve goals. So let’s get down to ensuring healthy savings.

Ensuring Healthy Savings

Self realization is the best form of realisation and unless you decide what your current financial position is, you aren’t heading anywhere.

This is the focal point from where you start your journey of achieving financial goals.

1. Track Expenses

The first and the foremost thing to be done is to track your monthly expenses. Use any of the expense tracking mobile apps to record your expenses. Once you start doing it diligently, you would be surprised to see how small expenses add up to a sizeable amount.

Also categorize those expenses into different bucket so that you know which bucket is eating the most of your pay check. This record keeping will pave the way for cutting down on un-wanted expenses and pump up your savings rate.

2. Pay Yourself First

Generally, savings come after all the expenses have been taken care of. This is a classical mistake which almost everyone of us do. We pay ourselves last!

Ideally, this should be planned upside down. We should be paying ourselves first and then to the world i.e. we should be taking out the planned saving amount first and then manage all the expenses from the rest.

The best way to actually implement is to put the savings on automatic mode i.e. money flowing automatically into different financial instruments (for example – mutual funds, retirement corpus etc) every month.

Taking the automatic route will make us lose control of our money and hence will compel us to manage in what’s left with us thereby increasing the savings rate.

3. Make a Plan and Vow to Stick with It

Budgeting is the best to get around the uncertainty that financial plans always pose. Decide in advance how spending has to be made.

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Nowadays, several money management apps and wallets can help you do this automatically. It’s easy and who knows, you may just end up doing what people fail to do.

At first, you may not be able to stick to your plans completely but don’t let that become a reason why you stop budgeting entirely.

Make use of technology solutions you like. Explore options and alternatives that let you make use of the available wallet options and choose the one that suits you the most. In time, you will get accustomed to making use of these solutions.

You will find that they make it simpler for you to follow your plan, which would have been difficult otherwise.

4. Rise Again Even If You Fall

Let’s be realistic. It’s not like the world will come to an end if you made one mistake. This isn’t called leniency but discipline.

If you fail to meet your budget for a month, don’t give up the entire effort just like that. Instead, start again.

Remember that flexible plans are the most realistic plans. So go forward and try to follow your financial goals as planned but if for some reason, the plan gets out of hand for you, do not give up on it just yet. This has a lot to do with your psychology rather than any material commitment.

All you have to do is to stay on the road and vow to stay on it, no matter how much you fall down.

5. Make Savings a Habit and Not a Goal

In the book Nudge, authors Richard Thaler and Cass Sunstein advocate that in order to achieve any goal, it should be broken down into habits since habits are more intuitive for people to adapt to.

Make Savings a habit rather than a goal. While it might seem to be counter intuitive to many but there are some deft ways of doing it. For example:

Always eat out (if at all) during weekdays rather than weekends. Usually weekends are expensive. Make it a habit and you would in turn be saving a great deal.

If you are travelling buff, try to travel during off season. Your outlay will be much less.

If you go out for shopping, always look out for coupons and see where can you get the best deal.

So the key point is to imbibe the action that results in savings rather than on the savings itself, which is the outcome. Focusing on the outcome will bring out the feeling of sacrifice which will be harder to sustain over a period of time.

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6. Talk About It

Sticking to the saving schedule (to achieve financial goals) is not an easy journey. There will be many distractions from those who are not aligned with your mission. And it would be rather easy to lose the grip over your discipline.

Therefore in order to stay the course, it is advisable that you keep yourself surrounded with people who are also on the same bandwagon. Daily discussions with them will keep you motivated to move forward.

7. Maintain a Journal

For some people, writing helps a great deal in making sure that they achieve what they plan.

So if you are one of them, maintain a proper journal, where you write down your goals and also jot down the extent to which you managed to meet them. This will help you in reviewing how far you have come and which goals you have met.

Use this journal to write down all essential points such as your short term, mid term and long term goals, your current sources of income, your regular expenses which you are aware of and any committed expenses which are of recurring nature.

When you have a written commitment on paper, you are going to feel more energised to follow the plan and stick to it. Moreover, it is going to be a lot more easier for you to follow you and track your progress.

At this point, you should be ready with your financial goals and would be doing brilliantly with savings; now it’s time to talk about the big daddy – Investments.

Making Smart Investments

Savings by themselves don’t take anyone too far. However savings when invested wisely can do wonders and we are at that stage where we will talk about making smart investments.

8. Consult a Financial Advisor

Investments doesn’t come naturally to most of us therefore rather than dabbling with it ourselves, it is wise to consult a financial advisor.

Talk to him/her about your financial goals and savings and then seek advice for the best investment instruments to achieve your goals.

9. Choose Your Investment Instrument Wisely

Though your financial advisor will suggest the best investment instruments, it doesn’t hurt to know a bit about them.

Just like “no one is born a criminal”, no investment instrument is bad or good. It is the application of that instrument that makes all the difference.

Do you remember we talked about bifurcating financial goals in short term and long term?

It is here where that classification will help.

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So as a general rule, for all your short term financial goals, choose an investment instrument that has debt nature for example fixed deposits, debt mutual funds etc. The reason for going for debt instruments is that chances of capital loss is less as compared to equity instruments.

10. Compounding Is the Eighth Wonder

Einstein once remarked about compounding,

Compound Interest is the eighth wonder of the world. He who understands it, earns it… He who doesn’t… Pays it.

So make friends with this wonder kid. And sooner you become friends with it, quicker you will reach closer to your financial goals.

Start investing early so that time is on your side to help you bear the fruits of compounding.

11. Measure, Measure, Measure

All of us do good when it comes to earning more per month but fail miserably when it comes to measuring the investments; taking stock of how our investments are doing.

If there is one single step where everything (so far) can go wrong, it is at this step – Measuring the Progress.

If we don’t measure the progress timely, then we would be shooting in the dark. We wouldn’t know if our saving rate is appropriate or not; whether financial advisor is doing a decent job; whether we are moving closer to our target or not.

Do measure everything. If you can’t measure it all yourself, ask your financial advisor to do it for you. But do it!

The Bottom Line

This completes the list of tips for you to set financial goals and actually achieve them with not so great difficulty.

As you can see, all it requires is discipline. But guess that’s the most difficult part!

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Featured photo credit: rawpixel via unsplash.com

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