Life is unpredictable. Our financial lives can be, too. From soaring inflation to rising interest rates to volatile markets, it can sometimes feel like we don't have control of our money, especially your hard-earned savings. Rest assured, though, there are some steps you can take to safeguard it.
- Understand deposit insurance. With the rise of Internet banks, you now have more savings and checking account options than ever before. But before you open an account or send money, make sure your money is protected by deposit insurance. With FDIC insurance, you're protected up to $250,000 per depositor, per insured bank, for each account ownership category. Take some time to understand how deposit insurance works to know how to protect your accounts. If you have higher deposits, for example, you may want to consider choosing a financial institution that offers additional insurance protection.
- Keep track of your accounts. It's always a good idea to monitor your accounts and balances to see where your money is going and to identify fraud. You should also keep track of and document all your assets, including your checking, savings, CDs, and retirement accounts. You can monitor your bank accounts online and even set account alerts to notify you about specific transactions or when your balance reaches a certain level.
- Review your credit report. In addition to monitoring your savings, you should safeguard your credit. Reviewing your credit report regularly can help you detect and correct any errors or misinformation that could impact your credit score. It can also help you detect fraudulent activity.
- Check in on your investments. Though volatile market conditions can change the value of your portfolio, it's a good idea to regularly review your investments to view your activity and balances. If you work with a professional, schedule a meeting to evaluate your goals, changing market conditions, and tolerance for risk.
- Don't be reactive. When financial conditions change, such as market drop or a bank closure, it's easy to become reactive and make impulse decisions. Before you consider withdrawing your money or selling securities, always do your research to ensure you know all the advantages and disadvantages and understand the short- and long-term implications.
You've worked hard to build your savings. Take the time to protect it.