Most homeowners do not take the time to secure their personal belongings. Some people will open a safety deposit box to store valuables, but they do not realize the bank doesn’t insure what is inside the box. You need to lower the risk of theft in a number of forms to prevent serious financial problems. What about an emergency savings account in case you have a natural disaster strike? It is important to learn how to manage your finances correctly to prevent disaster.
Enroll In Credit Monitoring
No matter how safe you try to be with your online behavior, there is always a risk of theft. You need to be smart in the way that you shop online. Credit card theft is always a problem. It is important to consider signing up for a credit monitoring service to protect your identity. Credit services will contact you immediately if there is suspicious activity. This can prevent you from dealing with expensive problems in the future if someone did steal your identity and you end up being financially responsible for the problems. Keeping some extra money at home can help out if you end up having your credit cards frozen for a while due to identity theft problems.
Secure Your Belongings – At Home and In the Cloud
What happens if your basement floods? Will you lose all your important financial files and many of your memories? You need to secure your belongings so you don’t end up having such problems. Consider renting out cheap storage in Seattle to move some of your personal belongings. This is a great way to prevent theft since the items are stored in a locked unit. Make sure you properly store the items so they do not become vulnerable to water damage. If you keep some items at home, consider locking the important financial documents in a fireproof box. This way you can still get to your important files if you need them after a disaster. Remember to hide them in a smart area so a burglar won’t think to look in that area.
Open a Savings Account
Since you never know when disaster will strike, always plan ahead. You must have a savings account to prepare for your retirement, and for short-term needs. An emergency savings account is a great option if you end up having a natural disaster. Check your deductible amount and always keep that amount in your savings account. Your insurance company will normally cover many of the costs, but you need to meet your deductible limit before they can help. Many financial experts agree that you should save at least 6 months of your income in a savings account. Not only does this help out with a rainy day problem, it can help you survive in case you lose your job. If you can’t set aside this much money, start small by saving 10% of your paycheck each month or even $50 a paycheck so you have something to fall back on instead of using credit cards.
Start a 401k or IRA
Open a retirement account and diversify your investment portfolio. Having a mixture of different investments will give you something to fall back upon in case the stock market fails in the future. Bonds, commodities, real estate, and stocks are great things to have in your investment portfolio.