It takes a great deal of effort to make money and accumulate wealth. It is very essential to put the right structures in place to protect your accumulated wealth and money while you consistently and continually grow it.

Protecting your money means being cautious about how you save and spend it. This include purchasing insurance, accumulating savings in case of emergency, avoiding scams and identity thefts, and being aware of your credit record and credit score.

INSURANCE

Purchasing insurance is a crucial way to avoid being blindsided by an unforeseen expense. Insurance is something you purchase from an insurance company in a form of insurance plan. It allows you to make monthly payments to an insurance company which agrees to cover all or portion of the costs of whatever item the plan is intended to insure after you have meet your deductible.

The deductible is the set amount that you must pay before your insurance will cover costs. For example, if your car insurance deductible is GHS 2000 and you get an accident, you must pay the GHS 2000 before you can use your insurance to help cover all or portion of the cost of repairs. The entire deductible does not have to be paid at once.

If your deductible is GHS 2000 and you have to make an eligible car repair of GHS 1000, you will have to pay GHS 1000 of your GHS 2000 deductible, and will only need tospend additional GHS 1000 on repairs before you meet your deductible.

Car insurance, health insurance, and renters insurance are common forms of insurance. Renters insurance is available for individuals who are renting apartment or housing. This insurance plan covers the cost of replacing your personal property in case of theft or a damaging event such as fire.

Insurance is important because it is very likely to save you money in the long run.

Let’s look at health insurance.

Let’s say you pay GHS 20 per month for health insurance. This amount seems like a lot, but the cost of out-of-pocket health care itself is much expensive. Many people cannot afford those costs without insurance. If you end up in the hospital for any reason, you can quickly find yourself with a bill for thousands of cedi’s.

If you have insurance, the company will usually cover enough of this bill to save you a lot of money, even after you factor in what you pay for health insurance each month. While insurance can be helpful for some situations, I still insist it is a good idea to save some money for emergencies. Even with insurance, you may still find yourself with large medical expenses and will need money to cover the deductible.

Other emergencies may arise that you do not have insurance to cover. For example, in the case of a disaster brought on by the weather (flood) or a fire, you may need a place to live or to replace many of your possessions. A theft may also result in a need to replace important items. While these occurrences are not common, it is important to have a plan in case something unexpected arises.

Quick tip: See an insurance professional. You can equally get in touch for some recommendations 😉

THEFT IDENTITY

Another important way to own your money by protecting it involves avoiding scams and identity theft. With the advent of
electronic payments, criminals have found new ways to scam unsuspecting consumers. You need to be careful about any websites or companies with which you share your financial information. If you are not careful, someone could take your bank information and start spending your hard–earned money.

It is also possible for someone to steal your information and apply for credit cards, loans, or utilities in your name. This is an example of identity theft.

Online banking and electronic payment services offer great convenience to consumers, but the advances have opened up new avenues for criminals as well. This is why it is important to be careful and only provide your financial information to companies or organizations that you
trust.

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Peter Kwadwo Asare Nyarko is a Financial Literacy Advocate and Educator, Finance and Business Coach, Author.

Book Peter for Corporate Training, Public Speaking, Personal and Group Financial Planning and Coaching, Business Planning and Development, Consulting Services.

Email: peternyarko403@gmail.com pkan@cfleafrica.org pkanconsulting@gmail.com