Protecting your money from falling into the wrong hands has always been important. But as technology advances, it’s easier than ever for fraudulent activity to take place.
If you’re looking for ways to protect your money, read on. Here, we’ve rounded up some ideas to help you keep track of your finances so you can flag anything that goes awry.
Sign up for credit reports
Financial experts often advise obtaining one credit report every four months, distributed across the major credit bureaus. These bureaus – also known as credit reference agencies – are Experian, Equifax and TransUnion. They hold information about how you manage your credit and your report will tell you why your credit score is what it is.
By staggering your requests for your credit reports from each of these agencies, you can keep a continuous eye on your credit status throughout the year. Regularly checking your credit report is a powerful tool to detect and rectify any fraudulent activities promptly. With identity theft and cybercrimes on the rise, this simple habit can be the first line of defence against potential financial threats.
Use long and memorable passwords
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Everything is digital now, including where online transactions and banking. Therefore, securing your accounts with robust passwords is essential.
Opt for longer passwords or passphrases, ensuring you make the most of the maximum character limit allowed. A lengthy yet memorable password is more effective than a short, complex one that may be forgotten or written down.
Seek financial aid
Financial challenges can arise unexpectedly, and seeking professional advice is a prudent step. Establish a relationship with financial experts who can guide you through budgeting, investment strategies, and overall financial planning.
Whether it's a certified financial planner or an accountant, having a knowledgeable ally can help you navigate complex financial decisions and optimise your wealth management.
Budget smart
Keeping close to your income and outgoings and budgeting carefully can help you set financial goals and allow you to get to grips with your money. This, in turn, can help look after your financial and personal wellbeing as you’ll know what to expect most of the time in terms of your finances.
This also means you’ll know if things aren’t quite right, too. So, you can act quickly if you think something’s not adding up.
Build an emergency fund
Even with comprehensive insurance coverage and clever budgeting, unforeseen circumstances can strain your finances. Building and maintaining an emergency fund is crucial for weathering unexpected financial storms.
This fund acts as a safety net, allowing you to cover essential expenses without resorting to premature withdrawals from long-term investments. Aim to set aside at least three to six months' worth of living expenses in a readily accessible account.