Money Crisis? 3Killer Threats To Your Bank Balance

| September 13, 2014

When a money crisis hits, it can shake up your entire world. Your finances are what keep you secure and mean that you feel safe on a monthly basis. When someone drains these finances, you could end up feeling exposed and scared about what to do next. There is nothing worse than feeling like you don’t have financial security and worrying about how you will cope. It is difficult to protect your finances and ensure that you and your family have enough money. If you are on a low-income then, you will find keeping your bank balance in check difficult. 

Worse still, there are threats to your money in the short-term. Sometimes you don’t even realize that your money is under threat until it happens. When your money gets wiped out you begin to fear for the future and wonder what to do next. Here are three killer threats to your bank balance and how to solve them.

1. Identity Theft

Identity theft is a genuine problem in the western world. The advent of online shopping and internet banking means that it is now easier than ever for someone to assume your identity. If someone does steal your details then, he or she can use your card number to buy anything they want. These people will live a luxurious lifestyle for a while, and you will be the one picking up the check.

 

One way to prevent identity theft is by improving your online security. For example, you should never use the same password for more than one account. If your Facebook password is the same as your Paypal password then, you are giving hackers all the information they need. Make sure that you have a variety of passwords for each of your online accounts. You should also ensure that you only buy from safe websites. If a website looks fake then, it might well be fake. Sometimes websites mask URLs and imitate real, legit sites. If something looks wrong with your Amazon page then log off. The chances are someone is imitating the site to get your bank details.

 

Many banks cover identity theft in their insurance policy. You should ask your bank whether they have a fund for identity theft. The bank will likely reimburse you for your trouble, but this may take a month or two. In the meantime, you can get a short-term loan to cover your costs. Online lenders, such as Money3, will give you a loan in an instant, and you can pay it back when you have the cash again.

2. An Unexpected Accident

When something breaks in your household, you will need to pay someone to fix it. You can’t predict an accident, but you do have to sort it out as soon as possible. For example, if you use your laptop to work on, but spill coffee on the keyboard then, you will need to pay a computer expert to fix it. This unexpected expenditure will mean that you have less money than you thought you did.

 

The best thing you can do start an accident fund. Use your saving account to put away spare cash for accidents. Of course, you can pay an insurance company every month, but this is a risky move. Often insurance companies don’t pay out for accidental damage, and you might find that you have to cover the cost yourself. Saving money for rare accidents means that you always have a nest of cash to use when you need it.

3. You (Yes, You)

You are the biggest, killer threat to your bank balance. Many people go through their entire lives without ever taking control of their finances. Not understanding how to control your finances is the worst mistake that you can make. You can’t expect to have a healthy bank balance if you don’t understand finances. Take the time to look after your money, so that it can look after you.

 

Category: Finances

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