How to Protect Your Finances

Protecting your finances is an important step to ensure your financial security and stability. Here are some tips to help you protect your finances:

1.    Create a spending plan: Creating a spending plan helps you keep track of your income and expenses. This will help you avoid overspending and save money.  Try to set aside money to “pay yourself first” and put that towards your saving and investments before you pay your bills each month.

2.    Save for emergencies: Set aside some money for unexpected expenses, such as medical bills, job loss or car repairs. At a minimum, it is helpful to have at least three to six months of living expenses saved in an emergency fund.

3.    Monitor your accounts: Regularly check your bank, credit card and investment statements for any suspicious activity. Report any fraudulent charges immediately to your bank or credit card company.  Be sure to get your free credit reports each year from www.annualcreditreport.com

4.    Use strong passwords: Use unique and strong passwords for all your financial accounts. Avoid using the same password for multiple accounts.  Change the passwords at least a few times a year. 

5.    Protect your personal information: Be cautious about sharing your personal information online or over the phone. Do not provide your social security number or other sensitive information unless it is necessary.  It is best to not give this information out to anyone who has called or emailed you.

6.    Use security software: Install security software on your computer and mobile devices to protect against malware and viruses.  Run regular updates on your devices to be sure the security is up to date.

7.    Invest wisely: Do your research before investing in stocks or other financial products. Consult with a financial advisor if you are unsure.  Ask lots of questions and be sure you understand all the fees involved and any penalties for closing your account if you were to need the money back in the future.   

8.    Review your insurance coverage: Make sure you have adequate insurance coverage, including health, auto, life, umbrella and homeowners’/renters’ insurance.  Be sure you have liability insurance if you have a small business and additional auto protection if you are using your vehicle for side gigs like Instacart or Uber. 

By following these tips, you can protect your finances, have peace of mind and achieve greater financial security.