8 Financial Kick Starters for 2016!
Planning your New Year resolutions? If our bank balances don’t balance, nothing else does.
Here are 8 great tips to get the financial house in order before you begin dreaming the dream!
1) Consolidate Your Bank Account!
It’s never about how many accounts you have, it’s about how much money you have inside the account.
Have you set aside at least 3-6 months of your monthly income for emergency cash?
Just so that when the unexpected is expected, we are able to handle them with ease!
No more sneak attacks!
2) Make room for money!
What’s in your wallet?
This may sound a little silly but a clutter-free wallet will usher in new relationships with your money! So, do make room for more money!
You’ll probably only need 1 or 2 credit cards, too many may become a financial trap!
It’ll also be more manageable to track their benefits & perks.
3) Clear your bad debts!
Get rid of the bad debts first (credit card loans & personal loans), they often come jointly with rocket high interest rates.
Having a good credit repayment history will also make it easier for you to obtain credit and qualify for loans in future when you really need it…such as buying an investment property!
4) Expenses Crystal Ball!
When was the last time you did a check on your monthly expenses? Groceries, food, enrichment classes for your child?
Do you know where your money actually goes to?
Look no further than the 20/20/60 rule!
20% for your financial planning priorities!
20% towards contributing to CPF!
Lastly, 60% for expenses!
5) Creating a pot of gold for opportunity!
An opportunity fund is a fund that you set aside so you can take advantage of opportunities as they arise.
Opportunity need not arise only during times of investment crisis. After all, a crisis will remains as a crisis to you until you have funds to turn it into an opportunity.
Opportunity could also be an offer to make an investment in a business venture that could benefit you financially or it could be investments in your passion that gives you emotional returns!
Why not have a pot of gold for opportunity!
6) Review your Insurance Portfolio!
Same as your bank account, it’s not about how many insurance policies you have but what they can do for you when the unexpected happens!
Be a responsible risk taker!
7) Setting Life goals for 2016!
New year Resolution for 2016?
According to FORBES, just 8% of the people achieve their New Year’s Goal!
For me personally, I’ve given up on making 1.
However, I do believe in making Life resolutions. That is, making little changes and working on the good habits that will consistently lead us to our destination in style.
8) Meet your financial advisor!
Why not make a date with your financial planner as you begin charting for the year ahead?
You will have a clearer picture on how to navigate steadily towards your 2016 financial goals!
Until we pay more attention to our money and the way we organise them, making more won’t help!
Good luck and have a financially rich 2016!
Article by Yan Kai Yun
(NOTE: Get our Financial Planning Philosophy (Building Transferable Wealth Guide) as a guide to help you plan your life finances. Get your FREE hard copy delivered to your home here)