If you’re like most folks, when you first hear the term wealth building, the topics that frequently come to mind are usually centered on how to increase income, investment strategies, and even, how to make the most out of your budget. After all, saving and investing a portion of your hard earned money and using it to acquire assets is one of the top ways to build wealth.
The Importance of Protection
One aspect of wealth building that is often overlooked, however, is the critical importance of taking steps to protect the assets that you’ve acquired. Regardless of the actual value of any particular asset that you own, unless you take some steps to safeguard it from theft, fire or other disaster, losses can easily occur, can add up over time, and can significantly damage your financial security and peace of mind.
The following are a few helpful security tips that can make it easier to safeguard your assets from loss.
Physical locks and alarms are some of the most common anti-theft devices that can be used to protect your valuable items, such as your car or other vehicle. While some vehicles come with anti-theft security alarms pre-installed, aftermarket kits can also be purchased that prevent the vehicle from starting in the event the alarm is tripped.
Other systems, such as Lo-jack, use software and RF technology to transmit a signal that allows law enforcement agencies to track the stolen vehicle. These systems make it easier for stolen vehicles and other valuable property to be returned to the owner when theft occurs.
While some anti-theft devices are expensive to purchase and install, crime statistics show that prevention is well worth the price. According to crime data collected by the FBI in 2012, vehicles worth over $4 billion dollars were stolen in 2012 alone, and on average, a vehicle is stolen in the United States every 43 seconds.
Buying a house is a big investment. For many folks, their home will be the most valuable and expensive asset that they acquire, so it makes sense to take steps to protect it, along with the possessions that are stored inside.
Today’s alarm systems have become quite sophisticated, and many include 24/7 home monitoring that will alert law enforcement should a break-in occur, while also allowing homeowners to be alerted when an unauthorized entry happens.
Some of these systems even make it easy for homeowners to use apps to remotely control their thermostats and lighting, and open and close doors to increase the comfort and enjoyment of the home while providing increased protection.
In addition to physical locks and monitoring devices, taking steps to protect personal data, financial information, and even electronic hardware and software is also an important consideration when it comes to protecting your wealth. Cyber-security in the form of strong passwords, encryption and anti-virus software is critical to protecting the loss of your personal and financial information, as well as helping you to protect your desktop, laptop, smartphone or other device from hacking, or other theft.
Smart storage and backup solutions also play a crucial role in preventing the loss of important files and other data, as cloud storage can help you to recover crucial information in the event of theft, and especially due to loss in a fire, flood or other disaster.
Unfortunately, despite the improvements in home monitoring, anti-theft devices and cyber-security products, losses can and do still occur. For this reason, insurance remains a valuable way for individuals to protect their wealth and financial security as it allows them to be compensated so that they can replace or rebuild valuable property when it falls victim to fire, flood, theft or other loss.
Earning the money to buy valuable property and possessions is only part of the equation to building wealth and securing one’s financial future. Taking steps to secure assets to reduce the risk of a loss, and insure against potential loss remain important considerations for anyone who desires financial independence and security.