When you grow a family, it becomes more important to ensure that your finances are protected. While you can make a plan for the future, you never know what is going to happen. You should take a proactive approach when it comes to securing your finances. This will ensure you are well protected should the worst happen.
Your finances can be at risk for many reasons. It might be that someone steals your identity and financial information, or you are trying to equally split your finances in a divorce with your family law solicitors.
Regardless of the circumstances, everyone is at risk of a life-changing situation. If you encounter one of these problems, you will likely experience a lot of emotional stress and frustration, as you try to piece your life back together. Protecting your finances in advance means going beyond the basics to help you significantly reduce the risk of finding yourself in financial trouble.
Here are some top tips to help you protect your family finances.
#1 Password safety
It is common knowledge that you should have a strong password and should not share it with anyone else. But what constitutes a strong password a few years ago has changed now. Technology and cyber attacks are becoming more sophisticated by the day, and a password with a number in it just won’t cut it anymore. Instead, you should make it as long as possible, and use a combination of numbers and special characters at random. You should never use the same password with your finances as your other logins, and where possible, use a two-step verification process.
#2 Safety precautions
You should take additional safety precautions when it comes to your finances. Firstly, you should sign up for credit report alerts so you can be notified if there is any activity on your account. You should also only log in to view and manage your finances on secure and trustworthy devices, such as your home network. Don’t ever log in to your bank accounts when you are on a public network. There is a range of other safety precautions that you can take, such as:
- Using a shredder
- Going paperless
- Not opening email attachments that you don’t know
- Don’t accept requests on social media if you don’t know them
- Using adequate security software
#3 Diversify your finances
It can be a good idea to spread your finances around into different accounts and investments. This will ensure that if you are ever a victim of a cyber-attack or identity theft, it makes it much harder for them to access all of your assets. It will also ensure that if one account gets hacked, you are not left with anything.
If you have a spouse, you may also wish to keep your finances separate or opt for a hybrid approach and keep some money separate, and share some funds. This can keep your finances safer if one account were to be hacked, but it will also help you to preserve your financial autonomy.
There are many ways that you can protect your finances and take control. Follow these top tips to help you get started.