How to Protect Your Credit After the Equifax Data Breach

How to Protect Your Credit After the Equifax BreachMillions of people (unfortunately, not an exaggeration) are wondering what many Corporette® readers are also wondering: how to protect their credit after the Equifax data breach. On September 7, Equifax revealed that hackers may have exposed Social Security numbers, credit card numbers, birth dates, addresses, driver’s license numbers, website security questions/answers, etc., for up to 143 million people — a “breath-taking amount of highly sensitive data [handed] over to criminals,” as Ars Technica put it. (With all the upsetting news stories recently, someone thought we needed even more things to worry about!) We’ve seen some contradictory information online — and the sheer amount of advice out there is overwhelming — so we thought we’d round up some expert advice in a post. Ladies, what steps have you taken to protect your credit after the breach? Have you used any services or had any success in freezing your credit? If you’ve written to government officials about changing the laws, share your script!

Here are the latest recommendations for how to protect your credit:

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Tales from the Wallet: How to Pick the Best Rewards Card For You

How do you typically use credit cards — and what are your tips on how to pick the best rewards card for you? We’ve discussed some great rewards credit cards (Kat is still using her Amazon Visa!), but we thought we’d have a broader discussion today about readers’ credit card habits — the good and the bad. Which do you think are the best credit card rewards — and what are your tips on how to pick the best rewards card for you? (Pictured: bright red Kate Spade wallet – highly rated and only $88 at Nordstrom.)

This post contains affiliate links and Corporette® may earn commissions for purchases made through links in this post. For more details see here. Thank you so much for your support!

I’m always using my credit cards, because like a lot of people, I barely ever carry cash. (It bugs me when I’m at a bakery or other business that doesn’t take credit cards, even though I get it.) I like how the fraud protection is better with credit cards than with debit cards, too; my cards have been compromised a couple of times and I’ve never been liable for anything. And the rewards don’t hurt: My Citibank Simplicity card lets me earn cash back, and my TJX card (Marshalls, TJMaxx, and Sierra Trading Post) earns me gift certificates at those stores. My husband and I also have a UPromise card from Barclaycard that generates money for our son’s 529 plan. (His grandparents have one too that also contributes to his account.)

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Tales from the Wallet: When to Dip Into Your Emergency Fund

when to dip into your emergency fundWe’ve talked in the past about emergency funds — particularly where they fit in a money roadmap and where you should stash the cash you’re saving for an emergency fund — but here’s something we haven’t talked about: when is it ok to dip into your emergency fund? How big of a deal is it to you if you need to take some money from your emergency fund to cover a big shopping trip, a vacation, or more? Do you overfund your emergency fund (and keep more than 6-9 months living expenses) so you CAN dip into it if you need it — or do you have a “stop point” where anything above a certain amount of money goes into an investment account? (On the flip side, do you keep a “fun money” or “mad money” account just for these kinds of indulgences — and save money to be spent?)

Pictured at top: I’m not usually a beige wallet kind of person, but this highly rated “tan sparkle lizard” wallet might make me change my mind. It’s $89 at Nordstrom (six other colors, too) (affiliate link).

As we’ve discussed in the past, I’m a pretty aggressive saver who hates to keep money sitting in low-interest checking and saving accounts, so for the most part I clear out our checking account every month and move left over money to higher interest online savings accounts. In addition to retirement savings, I use automatic transfers to savings and automatic investing as often as I can, and I also try to amortize known big purchases (like term insurance and a vacation budget) so that the cost is spread out over the year instead of hitting in one particular month. In fact, I have about 10+ accounts open at Ally right now for various things personal and business, as well as one big account at Ally that we consider to be our “family emergency fund.” But of all my crazy accounts I don’t have a “fun money” account — and maybe I need one for those for times when our credit card bill is bigger than expected, or it’s been a birthday month (or, ahem, a Nordstrom sale month) and more.

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Tales from the Wallet: What’s Your Vacation Money Strategy?

vacation money strategy tips and tricksHere’s a fun question for today: what’s your vacation money strategy? What’s your overall strategy about vacations and budgets — how do you plan to budget while on vacation — and how do you pay for vacation? There are a lot of questions here, such as:

  • Overall vacation money strategy: What do you consider getting the most “bang for your buck” — frequent and small vacations, one big vacation every year or two, or something else? From the “time vs money” perspective for vacations, do you gravitate towards the more expensive but all-inclusive cruise, resort, or tour so that you save time at the research phase — or do you prefer (for money or enjoyment) to DIY your vacations? For those of you who go to the same place often (such as spending a week every summer at Cape Cod or the Jersey Shore, or heading to DisneyWorld once a year), how big of a role does budgeting play in that decision?
  • Budgeting while on vacation: do you have ways of saving money while on vacation that you use no matter where you go? For example, bringing protein bars with you so your breakfast is covered, or making sure to hit the “included breakfast” at your hotel and eat a ton so you don’t have to eat a big lunch?
  • How to pay for vacation: Do you save in advance for your trip, or put it on credit card? Does anyone use automatic transfers to savings to set aside money regularly to keep for vacations? Is anyone heavily into airline miles or points?

 

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Tales from the Wallet: Seasonal Spending

seasonal spending budget tipsHere’s a fun question for today: Do you think you spend more in certain seasons? How do your strategies for saving or budgeting change from season to season — and what do you think your biggest money challenges are for each season? For those of you at big law firms and companies with extensive summer intern/summer associate programs, do you actively plan to bolster your savings this summer when there are so many firm-sponsored outings, to take care of things like food/drink/entertainment/transportation?

Pictured: love this floral wallet from Halogen for $89 (affiliate link). 

For my $.02, I definitely spend differently in different seasons, although I’m not sure which season I spend more during. A few ways my spending changes from season to season, off the top of my head:

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Cash Savings vs. Retirement Savings Accounts: Where to Stash Your Money When You’re Unsure What You’re Saving For

Cash Savings vs. Retirement Savings: Retirement Savings Accounts 101Everyone knows saving for retirement is a priority, because retirement is important and compound interest is powerful — but are the tax savings for retirement accounts so great that you should use them to save extra cash, too, such as for a hypothetical future home purchase? When I was in my late 20s — unmarried, not yet a homeowner, not sure how long I wanted to do the lawyer thing — this was my serious concern: cash savings vs. retirement savings. With my future so uncertain, and with so long to go before retirement, I wondered if I was losing more opportunities by saving money where I could get to it quickly, or by putting it away in retirement accounts… If I saved in cash, then my money was always available to me in case I wanted to buy an apartment, get married, or go back to school, but everyone told me to put it in retirement accounts instead to get the tax benefits (plus, retirement is important!).

In the early years, I was lucky because Schwab’s money market fund was paying ridiculous interest by today’s standards (5%!); I also finally did start maxing out my 401K in addition to saving money in cash when I was around 28. But when I finally got my bearings and started researching different retirement savings accounts, I was shocked to find that a lot of them would let me put the money (or some of it, at least) toward school, a first home, or more. A few years ago we did a post on tax-savvy investments that looked at these kinds of questions — but it’s been too long and we need an update. Thank you so much to editor Kate Antoniades for looking into the ultimate question: How do cash savings vs retirement savings stack up? If you’re already saving for retirement but have an extra $5,000 that you think you might need soon — but aren’t sure — should you leave it in a cash account earning very little interest, or put it in a retirement account to get tax benefits? – Kat

We haven’t gone into detail about tax-savvy investments like retirement savings accounts since 2012, so it’s definitely time for an update. What are the different retirement savings accounts available to most people? What are the tax benefits of them? Can you use the money for anything other than retirement, like grad school, a vacation or wedding, or a home purchase?  In the meantime, we’re shared posts on some pretty closely related topics such as setting financial goals for the year, making end-of-year money moves, choosing a financial planner, retirement savings in general, and paying down debt vs. saving. At election time last year, we talked about reacting to a stock market drop.

Before we get into the retirement savings vehicles — where, for the most part, you can’t touch your money until 59½ at the earliest — let’s discuss cash savings. (Oh, and a note on going back to school — if you’re 100% certain you’re going back to school, a 529 may be the way to go. Here’s a post from Fidelity that weighs the options.)

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