If you are looking to simplify your personal finances a good way to help you simplify them would be to build a financial fortress. Webster dictionary defines a
Fortress as A fortified place, especially a large, permanent military stronghold that often includes a town or a place or source of refuge or support
I am not recommending you build a large structure to hold all of your financial assets because the global financial markets are about to crumb. I am suggesting you put things in place to help protect your personal financial assets which would be like building your own personal fortress. By having a financial fortress you protect your assets against the unexpected as well as the expected. Having this fortress in place will prepare you for any situation that is throw at you financially. Its always better to be prepare than unprepared it always make the situation easier or more manageable to handle.
Here are financial attacks that your financial fortress can help protect you against:
Attack of Identity thief
Everyday you hear about someone’s identity being stolen. Having your identify stole is not a situation you want to deal with. So build a ID thief fortress with the following:
- Set up account alerts to help monitor your account activities
- Shred your financial documents
- Sign up for ID protection services that monitor your credit bureau
Unexpected expense attack
It will happen one day you just can not predict when it will happen or how much damage it will caused. What I am referring to is the unexpected repair, medical expenses, or any other expenses that you did not plan for. To protect against this type of attack you should build an emergency fund fortress. This fortress should be stocked with enough cash to cover any unexpected expenses. How much to funded it with is always the question.
Many people have dealt with this issue over the past two years. But how many of them were prepared for not having a job. Yes the easy solution would be to just go get another job but what if there are no jobs available what do you do then. Building a job loss fortress can help. Here are something you should do to build that fortress:
- Have multiple sources of income
- Have a job loss plan in place
Financial Markets Attack
This is something you can also not predict but you can build a fortress to help protect you from this attack. A meltdown in the markets can reduce your net worth within a couple days and can also impact on your future plans as to when you will be able to retire. Here are some tips to build your financial markets fortress:
- Invest in multiple assets classes
- Reallocate your accounts regularly
- Revisit your investment goals and objectives often
Natural Disaster or Health attack
We can not predict when a natural disaster will hit or when your may become sick. But you can build a insurance fortress to protect you against these natural disaster and health issues. Review your insurance coverage to make sure you and your family are adequately coverage. Not having the proper insurance can place a significant financial burden on your personal finances.
Having these financial fortresses in place will help you protect your personal finances as well as help you simplify your personal finances.
Look to see what financial fortress that you should build to protect against a financial attack.
What are other financial fortresses that should be build to protect your personal finances as well as help simplify them?
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Tagged as: protect your financial assets