How Safe Is Your Money?

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How safe is your money?  That is an important question to be asking yourself these days.  With banks going under almost every week, it is essential that you know what is happening behind the scenes.  This article was written to provide you with simple steps you can follow to make sure that your mind is at ease when it comes to your finances.
Step 1:

Know where your money is. This seems like a no-brainer, but for those of us with multiple accounts it is more important than ever to know what we have and where we have it.  Go to the local branch of your bank and ask to have a print out of all of your accounts.  Keep up with these accounts on a monthly basis and look through the reports. Many people also go through investors, which can be just as nerve wracking. These is a time that you want to keep up with where they are moving your money, because many are shifting accounts to avoid the major hits being taken by those who are refusing to move their money.

Step 2:

Check the protection your money has behind it. After tracking down all of your accounts, this may be the most important step.  A common misconception of putting money in the bank is that it is 100% safe.  Well frankly that isn't true.  Your money is only safe up to $100,000, and anything above that is not guaranteed or insured.  You should find out more information about account insurance at FDIC.

Step 3:

Know your banker. This is something that everyone needs to start doing, but not many people do.  Become familiar with not only your bank, but also the branch manager at the local branch you visit. Many people become intimidated when meeting with these "head honchos", but they are working for you. Keep tabs on the financial condition of the operations, and have a good line of communication between you and those who have your money.

Step 4:

Diversify your finances. If you have more than 20% of your overall finances in one place you need to distribute your funds immediately. No matter how much of a show is being put on, there are no guarantees right now. Huge financial institutions are crumbling and everyone is taking a hit. It is a common rule of thumb that 20% is the maximum you want in one place.

Remember this is your money, and most likely what you will count on for retirement or paying for your kids college, so be sure to understand where it is and how safe it may be.
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This article was written by the authors at LiveLoveCoffee.com your online coffee shop for reliable information and articles on coffee grinders, coffee machines, and espresso machines.
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