Make this the year you go the extra mile to safeguard your money.
- Keeping your money in an FDIC-insured savings account could ensure it’s there for you when you need it.
- Checking your credit report could alert you to fraud.
- Investing in assets that make sense to you could help you avoid or minimize losses.
Your money is something you no doubt work hard for. So the last thing you want to do is compromise it. If your goal is to keep your money nice and safe in 2023, here are some key moves to make.
1. Keep money you need for emergencies or near-term goals in a savings account
Maybe you’ve been saving up to buy a home, and you hope to be in a position to apply for a mortgage loan within the next couple of years. Or maybe you’ve managed to build up an emergency fund with enough money to cover five months’ worth of bills.
The best place for money you expect to use in the near term, or you might need for emergencies, is a savings account. Tempting as it may be to stick that money into a brokerage account and invest it to generate a higher return, when you go that route, you risk losing money. And that’s not a position you want to put yourself in.
2. Make sure your bank is FDIC-insured
The money you keep in your savings account is guaranteed to be there for you when you want it — provided your bank is FDIC-insured and you’re not socking away more than $250,000. The good news is that most banks are FDIC-insured, but if you’re putting money into a bank you’ve never heard of, do yourself a favor and just make sure. You can use this tool to make sure your money will be protected.
3. Check your credit report every few months
Your credit report provides a snapshot of your borrowing and financial picture. And checking it could be a solid means of fraud detection.
Let’s say you access your credit report and notice a credit card you don’t remember opening. It may be a simple mistake. Or, it may be that a criminal has opened an account in your name and is racking up charges against it as you read this. Seeing that information on your credit report should prompt you to investigate either way — and potentially minimize the financial damage that might ensue.
4. Only invest in assets you understand
It’s a good idea to invest money you don’t need for emergencies or near-term goals. But you should limit your investments to assets you understand.
A lot of people jumped on the cryptocurrency investing bandwagon when digital coins started getting more press. But a lot of investors may have also, in the process, dumped money into an asset they didn’t really understand in the first place. Case in point: In late 2021, 98% of participants across the U.S., Mexico, and Brazil failed a survey given by YouGov on basic crypto concepts.
Now it’s more than possible to invest in an asset you do understand and still lose money. But if you stick to assets that make sense to you, you might minimize your risk and losses.
Your money is something you should strive to protect — no matter how much of it you have. Use these tips to keep your money and finances secure in 2023 and beyond.
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