Tech outages are inevitable – have you protected your finances?

Three kinds of disasters can shut down our ability to bank and invest using computers and mobile devices. Consider last week’s global tech outage as a warning to start preparing for each of them.

The outage was brutal for sectors like airlines and hospitals, but mainly an inconvenience for people trying to access their investment or bank accounts. Here are some potentially worse situations, with some thoughts on how to get ready.

The first risk is a mass outage or cyberattack that makes your bank and investment accounts inaccessible by internet-connected computer or phone. Having accounts at more than one bank can help mitigate the risk in cases where just one institution is targeted. Otherwise, cash can help you buy what you need in the near term. Decide how much cash you want to have on hand, what denominations of bills and coins you need and stash them somewhere safe at home. A lock-box or compact safe is one option.

A second risk is an electricity outage. Phones may still work, but only if you can keep them charged. To do that, get yourself a rechargeable power bank that can keep electronic devices running for at least a day or two. Again, having cash on hand is key.

A third risk is extreme weather. In a flood or violent storm, both your electronic devices and paper documents could be damaged or destroyed. A password manager allows you to securely store your online passwords and retrieve them as needed, wherever you might be. If you store documents in the cloud to keep them organized and accessible, ensure they’re secure.

All of the measures discussed here apply to outages that last a few days or maybe a week at most. I got some insight into the minds of people preparing for worse situations in a recent media pitch for “prepper bars,” which means thin gold bars with sections that can be snapped off to use as currency in a post-disaster world.

Preparing for a world where gold becomes currency requires an expectation of complete societal breakdown rather than temporary digital disruption. I’m not there.