Finance Tips to Prep Yourself for the Coming 2019

The year is coming to an end, and as we lookforward to the festive seasons and celebrations during christmas and new year,let’s not forget that 2018 is coming to an end and here come the year 2019.Many a time, even working adults themselves do not know how to properly keep their finances in check,spending more than what they could afford with credit cards, or luxury brandedgoods, trapping themselves in a toxic cycle that never ends.

COMMONSCENARIO OF WORKING ADULTS: SPLURGE WITH ALL YOU HAVE LEFT

For instance, if Person A were to take home$2,500, after deducting expenses such as transportation, meals, entertainment,insurance, handphone bills and utility bills, they would be left withapproximately $1,000.

How would they utilize this sum of dispensablecash? Most Singaporeans would start to splurge on branded goods, or even buyingstuff that they do not essentially need but just because everyone has it, or itis eye catching, they make the purchase. This should not be how this $1,000should be spent.

The ideal way that this $1,000 should be spentis to save $200 - $300 for rainy days, remaining amount to invest in aninvestment instrument depending on your risk appetite. If you would rather playsafe and still get a substantial returns, you may consider investmentalternatives such as bonds, one such bond would be the Singapore Savings Bondswhich is a type of securities offered by the government which is suitable forlong term investors to invest in a flexible and safe way.

In order to have that mindset of a successfulinvestor, first and foremost, you have to know your money well. What bettertime than to start preparing yourself for the coming year of 2019. Let bygonesbe bygones, a new year equates to a new beginning. Start afresh, startcultivating good financial habits to secure and safeguard your future today.

Here are some financial tips that we thoughtyou should know to kickstart that habit of preparing yourself financially.

FINTIP#1: ALWAYS PRE-PLAN AND BE PREPARED

Prepare yourself for any uncertainties thatyou would be prone to. Draft out a will, nominate your beneficiaries, who wouldbe the executor, allocate all assets and keepsakes to whom you would like toentrust to as accurate as possible. Once that is done, you need not worry what would happen in the event of yourpassing. In the event of not drafting up a will, yourwishes may not be accurately fulfilled and certain assets may fall into thewrong hands as the state will take over the administration of the allocation ofassets.

Once that is done, pen down a list of longterm/current expenses of the household.

E.g. An example of what a typical household expenses should look like:

Monthly utility bill Monthly mobile & internet bill Monthly car loan repayment Monthly/weekly car petrol top ups Weekly grocery shopping Yearly/monthly insurance premium Monthly meals budget
Here on out, set aside money for each expense,and make sure you do not touch those money. If there are surpluses, you canallow it to rollover for the following months.

UnexpectedExpenses

Car accident Car repair House furniture/electronics spoil due to wearand tear Mobile bills exceeding call time or databundle Hospitalization bills Entertainment expenses (e.g. special occasionssuch as birthdays, christmas gift exchanges and dinner, new year evecelebration)
It is only to be prepared for the above andset aside money for those, by taking your finances in control, you are being responsible toyourself and your loved ones financially.

FINTIP#2: DIFFERENTIATE BETWEEN THE NEEDS & WANTS

A typical example between a need and a want: arice cooker vs partying and going out for drinks every weekend. The amount ofmoney you can save that month alone should suffice a rice cooker instead ofeating out everyday. Identify and single those expenses between needs andwants, there on, eliminate them one by one, meanwhile not incurring newerexpenses.

FINTIP#3:TAKE NOTE OF YOUR CREDIT CARDS, EXPENSES & DEBTS

It is important to know where your money isgoing. There and then, it will be evident to you where is your money leaking toand why are you just making ends meet even if you were to earn a salary that isway higher than your peers, but when it is closer to the end of the month, yourbank account is nearing to zero. As much as you can do not utilize your credit cards and if necessary, ensure that they arebeing cleared every month when your paycheck comes in to avoid interest fees,late charges, finance charges, etc. These would snowball and pile up whichwould usually stress most people out financially.

Read more on https://www.msn.com/en-sg/money/personalfinance/finance-tips-to-prep-yourself-for-the-coming-2019/ar-BBR9fma