5 Safe-Proofs to Keep You Financially Sound

Wed, Apr 30, 2014

Financial Advice

After working hard and properly managing your finances, it can be easy to enjoy the fruits of your labor and live comfortably. Although it’s important to appreciate what you own, its equally important to protect your assets and finances to avoid making yourself a target. There are several steps to take to ensure that you remain financially sound with a number of safe-proofs available.

1. Invest in Home Security

A home security system will safeguard your property from burglars and reduce the risk of a break-in by allowing the home to be monitored 24-hours a day. If a break-in should occur, it’s crucial to place important and confidential documents in a safe in a discreet location in the home. Make copies of each document and provide them to an attorney or trustee.

2. Avoid Too Much Risk

Although most people are hoping to gain a large return with risky investments that can have promising results, it’s not worth wiping out your financial future. Only risk what you can afford to lose and avoid chasing the latest trends with investments or fads. The most stable investments grow slowly with time, making it important to invest in CDs, life insurance, bonds, and even savings accounts. This will make for a diverse portfolio and reduce your risk in an economic downturn.

3. Purchase Renter’s Insurance

To prevent loss with damage or theft that occurs in your home, consider purchasing renter’s insurance, which will cover the costs if a fire, natural disaster, or burglary occurs. Most plans offer low deductibles and offer full replacement cost for protection of your assets. Some plans are as little as a dollar a day and can also offer protection if a liability occurs in the property. For policyholders, it’s one of the most effective ways of safeguarding your assets while renting.

4. Sign Up for Overdraft Protection

Over drafting your account can result in hefty fines and is a common occurrence for most people who share a joint account. A single transaction that results in an overdraft can cost $30, which can easily add up to hundreds of dollars with multiple purchases. Sign up for overdraft protection through your bank or credit union, which can minimize the fines and deduct money from a savings account to cover the costs.

5. Repair Credit Report Errors

Many people are not aware that there are often errors on credit reports that can significantly decline a personal credit score. These errors are easy to dispute after properly monitoring your credit score each month. Contact the credit bureau and provide the facts stating the inaccuracy of the report. The errors will be investigated within 30 days of your request and will often result in deletion or correction if they prove to be false. Provide any necessary copies that support your petition, while contacting the bureau via a certified letter.

To protect your finances and assets, it’s important to make the necessary adjustments to ensure that you’re prepared for theft or accidents that can occur. You’ll be able to reduce your risk of financial loss in the event of an accident, as well as have several back-up plans to ensure that you’re in control of every dollar and asset that you own.

 

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