Do you want to protect your money, manage it, save and invest wisely? If YES, welcome to WatchYourBuck, the ultimate online resource for sound financial tips. Earning money is difficult these days and no one would want to go through the difficulty of acquiring wealth and just watch the wealth fizzle out.
That is the major reason why people don’t only learn how to create wealth but also how to protect their wealth. Come to think of it, if you don’t know how to protect your wealth, you can easily go bankrupt. On WatchYourBuck, you will learn ways to protect your wealth from losses.
10 Most Important Things to Protect your Money from
Inflation
One of the major things you should protect your money from if you Toto build wealth is inflation. In order to effectively protect your money from inflation, you need to know what inflation is. Simply put, inflation is a measure of the rate of rising prices of goods and services in an economy.
Inflation can occur when prices rise due to an increase in production costs. A surge in demand for products and services can cause inflation as consumers are willing to pay more for the product.
Please note that as inflation rises, every dollar you have will buy a lower quantity of goods. Inflation is one of the main factors that reduce the value of money over time. It means that the money you have at the beginning of the year will get you lesser goods and services at the end of the year.
Divorce
Another important thing to protect your money from is divorce. A lot of people have struggled to build wealth over the years only to see themselves losing the wealth when they undergo a divorce. When you divorce your spouse, your possessions, money, financial assets, and debt acquired during the (and sometimes before) marriage is shared between the spouses.
In fact, divorcing individuals need a more than 30% increase in income, on average, to maintain same standard of living they had prior to their divorce. So, if you want to protect your wealth, you should do all that is within your power to avoid divorce, and avoiding divorce starts from marrying right, tolerance, and compromise (shifting grounds when necessary).
Lawsuits
Lawsuits no doubt is another thing that you should protect your money from. As a businessman, an entrepreneur, or someone who has built wealth over the years, you should steer clear of lawsuits and litigations. You can hardly build or sustain your wealth when you always indulge in lawsuits.
Several high-worth individuals and companies have lost all their money to lawsuits. For example, the most money awarded in a lawsuit is tobacco settlements for $206 billion. In 1998, Philip Morris, RJ Reynolds, and two other tobacco companies agreed to a $206 billion settlement, at a minimum, covering medical costs for smoking-related illnesses. Attorneys general for 46 states participated in the settlement, providing annual payments over 25 years.
The Government
The government at all levels use various devices to milk money from people and you should protect your money from them. Usually, the government is mandated by the law to collect certain levies, duties, tolls, charges, and rates from citizens but if you are not smart, you will find yourself paying more than is required from you.
So, if you are all out to protect your money, then you should get all the information on the levies, duties, tolls, charges, and rates that you are expected to pay and the ones you are not supposed to pay.
Economic Collapse
When the economy collapses, a lot of things are lost and one of such things is money. When we talk about economic collapse, we are talking of a country whose economy is no longer functional in the real sense of functionality.
There are many fundamental causes why a country’s economy may collapse and they include rising unemployment, rises in bankruptcies, defaults, or foreclosures, falling interest rates, lower consumer spending, and consumer confidence, and falling asset prices, including the cost of homes and dips in the stock market.
One of the ways to protect your money from economic collapse is by investing your money in gold, diamond, and other precious stones. You can also start a business or invest in a country that is safe and secure. This is important because bad governance and corruption contribute a great deal to the collapse of the economy of many nations.
Protect Your Money from Fraudsters
There are loads of fraudsters out there who are ready to latch on to your money if you give them the opportunity. Trust me, people and businesses have lost their monies to fraudsters no thanks to the advent of online banking, online money transfers, online payment portals et al.
Although, greed is considered one of the major reasons why people lose their monies to fraudsters, but you can’t rule out the fact that some people lost their monies as a result of ignorance of how online transactions work.
Protect Your Money from Drug Addicts
If you are unfortunate to have a drug addict as a family member, then you should do all you can to protect your money from them. In case you don’t know, a drug addict can drain your money and even make you go into debt if you don’t know how to protect your money from them.
As a matter of fact, drug addicts can sell all their personal belongings just to get drugs. Some superstars and celebrities have gone broke and homeless just because they ventured into drugs. So, if you don’t want to go bankrupt, then steer clear of drugs, if you start doing drugs, no matter your financial worth, you are likely to get broke and bankrupt in a matter of time.
Protect Your Money from Gamblers
Another thing you can protect your money from is gamblers. If you are unfortunate to have a gambler in the family, then you should do all you can to protect your money from them. In case you don’t know, a gambler can drain your money and even make you go into debt if you don’t know how to protect your money.
A gambler can sell all their personal belongings just to gamble. Some superstars and celebrities have gone broke and homeless just because they ventured into gambling. So, if you don’t want to go bankrupt, then you should steer clear of gambling, if you start gambling, no matter your financial worth, you are likely to get broke in a matter of time.
Protect Your Money from High-Risk Investment
High-risk investments or deals are things you should protect your money from. High-risk investments offer returns that are more attractive than those available from mainstream investments. But there’s no guarantee that high-risk investments will actually deliver high returns.
High-risk investments include currency trading, REITs, and initial public offerings (IPOs). There are other forms of high-risk investments such as venture capital investments and investing in the cryptocurrency market. No doubt, some high-risk investments usually give high returns, but in most cases, some of these investments have been the conduit where people have lost all their monies.
Protect Your Money from the Bank
Lastly, another thing you can protect your money from is the bank – yes, the bank! There are several ways that banks can steal from their unsuspecting customers. Please note that savings accounts are a safe place to keep your money because all deposits made by consumers are guaranteed by the FDIC for bank accounts or the NCUA for credit union accounts. Certificates of deposit (CDs) issued by banks and credit unions also carry deposit insurance.
To protect your money from the bank, you should make sure you vet your account statement regularly, verify every SMS notification you get from your bank, don’t access your financial accounts from just anywhere, never share your banking information with anyone, make sure you use a very strong password for your online banking and make sure you don’t give your PIN to any bank official.
In Conclusion,
Protecting your money should be worth your time because if you don’t, you are likely going to be in debt, you will lose your business, and your properties and the quality of your life will be reduced a great deal.