There are a lot of financial lessons around us which can help and give you tips for managing your finances. Especially with how technology helps you manage your finances, it can be a wealth of valuable tips you use. Technology has come a long way in helping you get a better grip on your finances. However, the same convenience can also give you financial problems.
If you have been listening in to the news lately, there was a massive online attack on computers. As CNET.com shares, the attack took place on Friday, May 12 brought by the WannaCry ransomware. What it does is locks up people’s computers and encrypts their files. It then demands payment from $300 to as much as $600 in bitcoins to decrypt the data. Failure to do so could result in computer owners losing their encrypted files altogether.
The attack has affected about 200,000 users covering more than 150 countries around the world. This is a trojan horse that infects people’s computers and holds their files and documents “hostage” unless they pay up. The problem with this is if you do not have backup copies of important documents in your computer.
With this development, there are a lot of businesses which are affected especially those that are running infected systems. As you look into these and try to figure out how you can protect yourself, there are also a few lessons you can learn which you can apply to the way you manage your finances. Here are a few of them.
Always back up important financial information
There are financial habits that might seem to be a lot of work when you look at it. In this day and age, why would you have to write everything down on a piece of paper when you can do that on your computer? Why do you need to have extra copies of important financial documents somewhere else?
Imagine having all those information conveniently stored up in your computer. As it makes things easier for you and more convenient, it also exposes you to potential risks. As with the case of the ransomware, if your computer was affected, you could have lost more than just your important documents. You might have ended up paying a huge amount just to get them decrypted.
Never leave sensitive information in your computers
Apart from having a secondary storage for important financial documents, it is best not to leave sensitive data on your computers as well. Yes, it is convenient to have your IDs and other data in your computer handy whenever you need them. However, you need to think about how often you really use them. According to USAToday, about 15 million consumers last year were victims of ID theft.
There is a good chance that you really do not have a use for them on a regular basis. In that case, it is best to store them in an external drive that you can physically detach from your computer. That way, you still get the convenience of having digital copies of your financial documents just an arm’s length away. This is also a good way of making sure that you are taking proactive steps in protecting yourself from identity theft. This is one of the financial lessons you can learn from this development. As you protect yourself from identity theft, you are also keeping your finances secure.
What this does is it helps you protect sensitive information from being taken by hackers. This is one of the financial lessons you need to understand when managing sensitive data. The ransomware explains that they will decrypt your data if you pay up and delete if you don’t. However, there is no stopping them from simply getting your files and using them for their own benefit. Once they have all your sensitive information, it is just a matter of time before they figure out how to use them against you.
Take extra precaution when managing online finances
Technology has come a long way and has drastically changed the way people manage their finances. Financial technology has offered so much convenience for people that almost everything can be done online. From checking and monitoring accounts to meeting financial obligations and debt management.
In all these, one of the most important financial lessons you need to appreciate especially in light of the WannaCry ransomware is due diligence. You still need to make sure that you are exerting all effort to keep making your online transactions safe. In the end, it is still you that would ultimately be able to prevent online attacks on your documents.
There are things such as making sure that you are doing your business on a secured site. You also need to make sure that you do not randomly click through links that come your way even if it comes from people you know. It is also a good practice to pay attention to detail because this is what usually separates phishing sites from legitimate ones.
Invest in genuine software is one of the financial lessons you can learn
One of the biggest reasons why other computers are unable to get the patch they need to combat WannaCry ransomware is their software. The patch only runs on genuine operating software. Bootlegs would have a hard time applying this update to protect their computers from attack.
With this, one of the financial lessons you can pick up is to invest in the quality of items you are paying for. Cheaper alternatives may be just that, cheap versions of the things you need. Case in point, a less-expensive light bulb might save you a few dollars but they could burn up faster than others. As a result, you end up spending more as you buy a replacement bulb.
The same with other purchases such as computers for work, furniture for the house, and even clothes. It is a good practice to look at the quality and not simply make a decision based on the price. There are instances when it is better to purchase expensive items when you know for a fact that it will last longer. This is also one of the things that separate cheap people from frugal spenders.
Be aware of things happening around you
When news broke out about the WannaCry ransomware, a lot of people has already been affected. Knowing about it early on would allow you to back up your files and other important documents you might have. As such, even if you get infected with it, you are able to keep your data safe.
The same thing with financial news, you need to be on top of developments happening around you. Be on the lookout for news that could directly have an effect on your finances. This can be anything from the inflation rate to stock movements and even price increases in commodities. This can give you the chance to be proactive in your decision making and be a step ahead with your finances.
There are a lot of financial lessons you can learn from things around you. Even the recent cyber attack by hackers can be a great source of lessons for your own financial management. As you learn more about the attack and how you can protect yourself from it, you can also use the opportunity to strengthen your financial security.