In today’s rapidly changing economic environment, taking proactive steps to protect your finances and personal information is simply prudent planning. At Woven Capital, we believe in helping our clients build resilience regardless of economic conditions. Here are practical measures to consider:
Digital Security & Identity Protection
The digital landscape presents increasing risks to your personal information. Consider these protective measures:
- Request a credit freeze with all three major bureaus (Equifax, Experian, TransUnion) to prevent unauthorized accounts. Set a calendar reminder to complete this process within the next week.
- Download and verify your Social Security earnings history annually through the official SSA.gov website.
- Review data-sharing policies of DNA testing services like 23andMe. Go to their privacy settings page and opt out of research sharing and third-party data sales if you’ve already used these services.
- Maintain secure digital and physical copies of essential documents (passports, driver’s licenses, trust documents). Use a fireproof safe for physical copies and encrypted cloud storage for digital versions.
- Use encrypted communication apps like Signal for sensitive financial discussions rather than standard text messaging.
- Strengthen cybersecurity across all devices and accounts with unique passwords and two-factor authentication. Consider a password manager like LastPass or 1Password to simplify this process.
- Consider alternatives to biometric security on devices that contain financial information, as fingerprints and face scans can be compromised in ways passwords cannot.
Emergency Preparedness
Having contingency plans provides peace of mind, especially as we’re seeing more frequent natural disasters like the recent Los Angeles wildfires:
- Keep $500-1,000 in small bills ($5, $10, and $20 denominations) in a secure home location for emergencies when electronic payment systems may be unavailable.
- Document your home possessions with photos or video for insurance purposes. Take 15 minutes this weekend to walk through each room of your house, narrating what you see, opening drawers and cupboards, and documenting valuable items.
- Maintain a 90-day supply of essential medications when possible. Talk to your doctor about writing prescriptions that allow for this buffer.
- Stay current on recommended vaccinations and health screenings, especially with flu season approaching.
- Prepare a “go bag” with essentials in case of natural disasters or other emergencies. Include copies of important documents, medications, chargers, and basic supplies.
Financial Resilience
Economic fluctuations are inevitable, but preparation can minimize their impact:
- Build or increase your emergency fund to cover 3-6 months of expenses. Start by automating a small weekly transfer to this account.
- Prioritize paying down variable-rate debt, which becomes more expensive as interest rates rise. Focus on credit cards and adjustable-rate loans first.
- Review your investment portfolio to ensure it aligns with your risk tolerance and time horizon. The recent market volatility makes this especially important.
- Consider diversifying income streams where possible, whether through side businesses, consulting work, or passive income opportunities.
Extended Self-Sufficiency
Recent electricity blackouts in Spain and Portugal remind us of the value of being prepared for utility disruptions:
- Start by building a 3-4 day supply of water (one gallon per person per day) and shelf-stable food, then gradually expand to a two-week supply. Rotate items regularly to maintain freshness.
- Consider home improvements that reduce utility dependencies, like solar panels with battery backup for essential circuits.
- Explore food gardening as both a hobby and supplemental food source. Even apartment dwellers can grow herbs and some vegetables in containers.
The Woven Capital Approach
At Woven Capital, we believe financial planning is about preparing for both opportunities and challenges. Our fee-only approach means we’re focused exclusively on what serves your best interests.
Remember that preparation isn’t about fear—it’s about creating options. These steps can provide stability regardless of economic conditions, giving you the freedom to focus on what matters most in your life.
Want to discuss how these preparations fit into your comprehensive financial plan? Contact us for a consultation tailored to your specific situation.