New Year’s Resolutions: Here’s your checklist for planning your finances in 2018
It’s almost the end of 2017 and it’s time to reflect back on the year — which resolutions have you ticked off your list? (If you managed to hit your weight goals, kudos to you!)
Singapore’s finances remain resilient as the economic recovery gains traction. Looking back on your investments, how well have you performed for the year?
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So if you’re planning your financial New Year’s resolutions now, here’s a checklist for you:
1. Calculate your current net worth
If you have no idea how much your assets are worth, now’s as good a time as any to get that down on paper (or an app like Personal Capital). From here, you can set a goal for 2018 and work towards it.
2. Check your retirement savings
Every year our needs change and our nest egg for retirement grows at a steady rate. Consider new factors like, are you now married? Do you plan on having kids? Or do you have kids on the way? All of these factors affect your retirement plan. Tweak it accordingly.
3. Create new savings goals
Similarly to changing your retirement savings goals, you ought to look at your general savings goals. If you plan to have a baby in 2019, are you financially prepared? Do you have a savings account for your baby’s birth, your child’s education, an extra fund for medical bills, etc? There are many things to consider when saving. Be sure to cover all bases.
4. Clear all debts as soon as possible
This goes without saying, but we’re going to say it anyway. If you have credit card debts, pay those off IMMEDIATELY. Some cards charge up to 24% in interest. Come up with a plan (and stick to it!) to pay off all your credit card debts first. If you’re in a more stable financial situation, you can also consider paying a little more every month on your mortgage to reduce your loan term.
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5. Rebalance your portfolio
Perhaps your risk appetite might have changed or maybe you’re looking at a different goal next year. If you plan to buy property, make sure your assets are liquid. Rebalance out your current investment portfolio to ensure your immediate goals (and long-term ones) are met. Engage a financial advisor to help you if you are uncertain.
6. Improve yourself in financial literacy
If you haven’t got a clue on where to even start with all of this, then what you should do is find out when the next financial literacy talk is within your area to become more well-versed in the investment world. One such event to get you started in investing is Fundsupermart’s Invest Expo 2018, happening on 6 January at Suntec Convention Centre Hall 403 from 10AM-6PM. Learn everything from starting your portfolio to diversifying to going in depth into different asset classes. Did we mention it is free admission?
So what goals are you setting for yourself as an investor in 2018?