A Tool By The Name of “Barrier”

Come into some money?

Just don’t say you’re going to spend it all.

Have the decency to at least save something.

And all of a sudden, our focus turns to the portion you’ve managed to save.

If you don’t fetch out your rule-book now, you’ll probably bungle up with whatever’s left too.

Have some discipline in life, pal.

The first thing you want to do is to set a barrier.

Barrier? Huh? What kind of barrier?

And why?

The barrier will cut off immediate and direct access to your saved funds. You’ll get time to think, when hit by the whim and fancy to spend your funds.

For example, a barrier can be constructed by simply putting your funds in a money-market scheme. With that, you’ll have put 18 hours between you and access, because even the best of money market schemes take at least 18 hours to transfer your funds back into your bank account.

Why am I so against spending, you ask?

Well, I’m not.

Here, we are focusing on the portion that you’ve managed to save.

Without savings, there’s nothing. There can be no talk about an investment corpus, if there are no savings. Something cannot grow out of nothing. For your money to grow, a base corpus needs to exist first.

Then, your basic corpus needs a growth strategy.

If you’ve chalked out your strategy already, great, go ahead and implement it.

You might find, that the implemetation opportunities you thought about are not there yet.

Appropriately, your corpus will wait for these opportunities in a safe money market fund. Here, it is totally fine to accept a low return as long as you are liquid when the opportunity comes. There is no point blocking your money in lieu of a slightly higher return, only to be illiquid when your investment opportunity comes along. Thus, you’ve used your barrier to park your funds. Well done!

Primarily, this barrier analogy is for these who don’t have a strategy. These individuals leave themselves open to be swept away into spending all their money. That’s why such individuals need a barrier.

An online 7-day lock-in fixed deposit can be a barrier.

A stingy spouse can be a barrier.

Use your imagination, people, and you’ll come up with a (safe) barrier. All the best! ๐Ÿ™‚

Your Personal War in Cyberia

Are you illiterate?

Literacy is not just alphabetical.

The meaning of literacy has expanded itself into your cyber world and also into your financials.

I mean, can you call yourself literate without knowing computer and financial basics?

I don’t think so. Not anymore. Times have changed, and so must you, in case you want to be called literate.

One of the first things one learns during one’s quest for financial literacy is the operation of one’s netbanking.

Once you are logged in, you soon realize, that your assets are under attack, and must be appropriately secured.

Login password, secure login, phishing filter, security questions, transaction password…you are learning fast. Your vocabulary is changing. Your defences are up. Yes, you are at war.

What kind of a war is this?

More of a cold war, till it gets hot for you, which can happen, but is not a must.

Worst-case scenario is that someone cleans you out. As in, a cyber thief steals all your money that was reflecting in your netbanking.

Your common-sense should tell you that your netbanking password is the all-important entity. Tell it to no one. Store it in a password safe. Keep changing it regularly. Don’t forget to update it in your safe. The safe of course opens with its own password, and is in sync between your mobile and your desktop. On both your mobile and your desktop, internet security prevails. Meaning, don’t use an el cheapo antivirus. Use a good one. Pay for it.

If there is a large amount reflecting in your account for a number of days without being used, secure it. Even if someone hacks in, available amounts should be as minimal as possible. Let the hacker first deal with unsecuring a secured amount. This gives you a time-window, during which you read and respond to any sms sent by your bank, that a secured amount has now been unsecured. The shot has been fired, your watchman has alerted you, and you now need to respond.

For the amount to be actually transferred out of your account, one more thing needs to happen. The hacker needs to set up a new payee under third party funds transfer. Some banks take three days for this, during which they coordinate with you whether or not you really want this payee to be set up. Other banks have a one-time password (OTP) system, where a transfer can only be activated by an OTP sent by sms to the registered mobile number linked to the account. Works.

Nevertheless, hackers seem to be getting around these systems, because one hears and reads about such cyber thefts all the time. However, the window created by your systems in place gives you crucial time to respond.

What is your first response, after becoming aware that you are under cyber attack?

Relationship manager (RM) –ย  call him or her. After you’ve alerted your RM, login if you can, and secure any unsecured amount. Change your login and transaction passwords, along with security images, words, questions and answers. Delete all payees. Logout. Close all windows on your desktop. Clear all history, cache, temporary files, cookies and what have you. Run a virus cum spyware scan. Clean any viruses, then shut your computer.

How does one go about securing unsecured amounts?

Make a 7 day fixed deposit with your unsecured amount. Or, configure your mutual fund operations through your Netbanking itself, and transfer the unsecured amount to a trusted liquid scheme offering 18-20 hour liquidity, all through your netbanking. Pretty straight-forward.

After you’re done, join your RM in finding the loophole. If you’ve incurred a loss, file a police report along with an application for reimbursal, citing all security measures you undertake as a given while also outlining the chronology of your actions after you realized that you were under attack.

That’s about it, I can’t think of anything else that you could do. If you can, please comment.

Right then, all the best!