As COVID-19 sweeps across the United States, social distancing measures and rigorous personal hygiene are helping to flatten the curve. But, just as frequent hand washing and standing six feet apart from others is critical to personal hygiene, diligent maintenance of your financial hygiene is important in times of uncertainty. Keeping your financial accounts organized, securing your digital accounts with strong passwords, and assigning someone to manage your finances if you’re unable, promotes overall financial health and preparedness for any scenario.
What is financial hygiene and why is it important?
Financial hygiene is a broad term that refers to your overall financial viability and security. This can include everything from maintaining a good credit score to organizing and updating all financial asset information regularly.
The continual practice of organizing financial assets is important for everyone, regardless of age or circumstance. While the outbreak of COVID-19 may have brought this issue to the forefront, organizing your digital assets is crucial for maintaining your financial hygiene. There are many instances in life where a loved one or trusted executor may need access to your financial and personal accounts.
The first reason individuals may assume they would need an executor to manage their finances is in the case of death. But, in actuality, this is far from the only instance that would require someone to access your varying accounts and assets. If you’re incapacitated for any reason, such as extreme illness or injury, having your finances in order provides clarity to the people you’ve appointed to help. This includes having a list of assets and login information at the ready. Read More