Last week we asked you if you think Singaporeans are knowledgeable about the difference between good and bad debts. A surprising number of you seem to think that they are not.
It's nearly Christmas and the end of the year. We've toughed out the worst of the recession, and the market recovery looks set to continue. Predictably, however, most companies are reluctant to issue large year-end bonuses, so there may be a bit of belt shrinking going on. Nevertheless, there's much reason for good cheer, as we look forward to the economic recovery in the year ahead.
In this festive season, Qotion suggests 5 activities you can do to settle your finances for the year, and progress to the year ahead with a fresh start, as we go from Christmas to Chinese New Year in a couple of months on a lean bonus.
1. Pay off and consolidate your credit card balances
There's nothing like the end of the year to plan your finances and consolidate your debts. If you have outstanding credit balances, do a balance transfer to reduce the interest rate payable each month. It is a good idea to transfer all balances from your various credit cards to one balance transfer account with 0% interest. Remember not to spend any money using this balance transfer card and to pay it back by the end of the 0% interest period.
2. Refinance your mortgage loan
According to financial experts, home loan rates will remain low for the next six to twelve months, so now's the time to get that loan. Think you're paying too much? Meet up with a mortgage advisor to see how much you can save with a refinancing loan!
3. Save on income tax
As we file our tax returns to IRAS, remember that options exist to provide more tax reliefs and pay less taxes. You can choose to top up your CPF account, your parents CPF retirement accounts, or join in the Supplementary Retirement Scheme.
4. Review your financial portfolio
2009 has been a year of ups and downs. If you're like the rest of us, most of your money's probably parked somewhere safe as the market turmoil subsides. With the economy picking up, however, now's the time to review your portfolio and get that passive cashflow going and growing again.
5. Assess your performance for 2009
Take the long holiday break to go through your stuff and put together a financial binder of important documents. Summarize your expenses and earnings for the year of 2009, and see how they stack up against your projections to meet your long term financial goals e.g. retirement, education, housing. Once you know how well you've done for the current year, you'll be more prepared to meet the challenges of the new one.
Below is a list of useful resources from Qotion that may help you with these activities:
What do you think? Do you think your financial goals were met for 2009?
Wishing You A Merry Christmas & A Happy New Year!
eason's Greetings & A Merry Christmas!
