"Spring-clean" Our Life and Finances in Preparation of 2023
Any time of year can be the right time to organize your home, office, and finances, but this is especially so during the New Year! Something about the New Year is just different - it is the time of the year when we reflect on the past year's achievements and failures and look forward to the promise of a new beginning.
Here are some tips on how to "spring-clean" our life in preparation for the New Year:
1. Enhance your environment and credit score. If your desk is covered in paperwork, weed out what's essential and store critical documents in a central place. The cleaner your desk is, the more productive you are. This is also an excellent time to check your credit report and ensure everything is in good order, and if not, start taking action to improve your credit score. In Singapore, you are entitled to one free credit report within 30 calendar days from the date of approval or rejection when you make a credit application with one of the Credit Bureau (CBS) members. Otherwise, you can get your report at S$6.42 (inclusive of GST) at the time of this article. Visit https://www.creditbureau.com.sg/how-to-get-my-credit-report.html to find out more.
2. Make everything within reach. Keeping frequently used items close at hand is essential when organizing your home and office. The same applies to your financial goals. Set goals you can reach. For example, start your retirement fund by putting a fixed monthly amount into a retirement plan (insurance) or a Regular Savings Plan (investment). Start small rather than not starting at all!
3. Have a backup plan for files and finances. If you have important documents stored on your computer, back them onto a thumb drive or the Cloud once a month. And as for financial backup, create an emergency fund of at least three months of living expenses. Also, make sure that your life insurance coverage is up to date. According to experts, it is advisable to have a life insurance protection that equals eight times your annual income for a married couple with two children. And while you're at it, ensure your will is current, and your investment portfolio is still aligned with your goals and risk profile.
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4. Get rid of things you don't need. If you don't have a paper shredder, get one or tear the documents manually. Documents you should get rid of include monthly financial statements for the past year once you've received the annual one if you receive the hard copies. Also, shredding anything you don't need that contains your personal information, such as your full name, address, and birth date can be your first line of defence against identity theft and scams! Likewise, delete files you no longer need for softcopy documents and ensure your important files are encrypted and saved in a computer with antivirus software installed. Additionally, it's also an excellent time to review and trim down the list of subscriptions and memberships you have and put the money to better use.
5. Automate wherever possible. One easy way to eliminate clutter is to sign up for online statements and cut down on paper statements. This is friendly for our environment too. Additionally, you can set up automatic fund transfers for periodic equal payments via internet banking, reducing the need to monitor deadlines and transfer funds manually.
If you do the above, you'll get a good head start to 2023. Remember to set your New Year's Resolutions, too! I wish everyone a wonderful and fulfilling New Year with lots of love, laughter, and joy.